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Shell, Communities Set to Resolve Dispute Over OML 25

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Shell
  • Shell, Communities Set to Resolve Dispute Over OML 25

Stakeholders, including communities of Oil Mining Licence 25 in Akuku-Toru Local Government Area of Rivers State, and Shell Petroleum Development Company have agreed on the procedures for the re-opening of the oil field.

The Memorandum of Understanding, which will be facilitated by the Rivers State Government, will be signed on July 1, 2019, and signify the final resolution of the conflict.

This was the outcome of the meeting on Thursday between the host communities of OML 25, the SPDC, service commanders and officials of the Rivers State Government on the directive of Governor Nyesom Wike.

A representative of the Governor and Secretary to the Rivers State Government, Dr Tammy Danagogo, directed the Solicitor-General of the state to draft an MoU on the premise of the resolutions reached at the meeting.

Danagogo outlined the four-key resolutions reached during the meeting on the re-opening of OML 25.

He said, “The SPDC should pay the agreed funds into an account. The permanent secretary, community affairs, has been mandated to ensure that the funds are transferred to the communities.

“The SPDC should be able to pay the available sum latest by Monday. Shell would pay N260m and N75m by Monday.

“The communities should, within seven days of signing the resolution, vacate the facility. Also within two weeks, Shell should pay the remaining part of N1.014bn.”

The Rivers SSG added that it was resolved that the SPDC would, therefore, obtain approval from the National Petroleum Investment Management Services to pay the money that accrued between 2009 and 2013.

He added that within two weeks of signing the resolution, the state government would set up a platform for Shell and the communities to renegotiate the Global Memorandum of Understanding.

The General Manager, External Relations, SPDC, Mr Igo Weli, said the first set of funds to the communities would be paid on Monday.

He said the outcome of the financial reconciliations would be paid within two weeks of signing the resolution.

Weli added that the SPDC, in line with the resolution of the meeting, was seeking the approval of NAPIMs for payment of funds for 2009 and 2013.

The Chairman of Akuku-Toru LGA, Rowland Sekibo, said the meeting initiated by the state governor had recorded a milestone with agreement on the funds to be paid by SPDC.

The OML 25 was shut down by some indigenes of the three communities in 2017, citing alleged neglect and non-implementation of development projects by the SPDC, which had been operating in the area for some years.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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President Buhari to Inaugurate Waltersmith 5,000bpd Modular Refinery Today

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President Muhammadu Buhari will inaugurate the 5,000 barrels per day modular refinery built by Waltersmith Group in Imo State.

According to Waltersmith Group, the President will lead a team of other top government officials, oil regulators and stakeholders to Imo State today for the inauguration, the Group stated in a statement released on Monday.

It said the modular refinery has a storage capacity of 60,000 barrels and is expected to deliver over 271 million litres per annum of refined petroleum products, including kerosene, diesel, naphtha and heavy fuel oils, to the domestic market.

Mr. Abdulrazaq Isa, the Chairman, Waltersmith Group, said the first of 50,000 bpd modular refinery to be inaugurated today would process 5,000bpd of crude oil.

We are looking at 50,000bpd refining capacity that will come with the planned additional two modules; 25,000bpd and 20,000bpd refining capacity respectively which will then add PMS, aviation fuel and LPG to the product slates,” he added.

The statement added that Waltersmith obtained the ‘Licence to Establish’ the refinery from the Department of Petroleum Resources in June 2015 and got the ‘Authority to Construct’ in March 2017.

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Central Bank of Guinea Selects Refinitiv Trading solutions to Enhance Transparency and Digitize Guinea’s Financial Markets

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GUINEA – Central Bank of Guinea has adopted Refinitiv Trading solutions to effectively manage currency flows, primary market liquidity provision, and facilitate regional and international trade and investment.

With the scarcity of liquidity across Sub Saharan African markets, it is crucial for African countries to protect their FX reserves and tab on new liquidity pools. Leveraging technology and deploying efficient FX and trading infrastructure systems enhances transparency, accuracy and credibility to the marketplace and facilitates economic growth. The Refinitiv FX Trading platform will offer the local market in Guinea access to deeper offshore liquidity, efficient execution, and automated trade reporting tools.

Refinitiv Auctions will enhance the efficiency of Guinea’s forex auction capabilities and provides a real-time view of bid submissions which will simplify the allocation process. Last year, Refinitiv Auctions reached a key milestone having helped facilitate over $1trillion for its central bank and large corporate customers in Africa, Middle East, Asia and Europe.

Dr. Louncény NABE, Governor of the Central Bank of Guinea, said: “We are delighted to announce the deployment of Refinitiv Auctions in Guinea. The step comes in line with the Central Bank’s vision to run a transparent and compliant auctions infrastructure. The deployment will help us improve the efficiency of our FX auction process and enhance the financial sector’s confidence in Guinea.”

Nadim Najjar, Managing Director, Middle East and Africa, Refinitiv, said: “We are proud to be part of The Central Bank of Guinea’s digital transformation vision. Following the COVID-19 outbreak, Central Banks in Africa are facing increasing risks in managing their currency flows and protecting FX reserves. To do this effectively, central banks need to be able to run a transparent and compliant process across multiple asset classes including FX and money markets.”

Refinitiv Auctions has seen rapid growth and adoption in 2019, with a 27% year on year increase in customers, and is now used by central banks in Europe, the Middle East, Africa and Asia. Refinitiv is able to address central banks’ needs around data residency and infrastructure costs by offering its solution on either a hosted or deployed basis.

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Ardova Partners Shell to Distribute Shell Branded Lubricant Products

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Ardova Plc, one of the leading indigenous oil marketing firms, just signed a Memorandum of Understanding with Shell Trading International Limited to act as the main distributor for Shell Lubricants branded products for the automotive and industrial sectors in Nigeria.

In a statement released via its official Twitter handle @ardovalplc, Olumide Adeosun, the Chief Executive Officer, Ardova Plc, was quoted as saying “We are delighted that our company will act as the main distributor for Shell Lubricants branded products for the automotive and industrial sectors in Nigeria.”

Formerly known as Forte Oil Plc, Ardova new owner, AbdulWasiu Sowami, noted that the company’s goal was to provide customers with best in class products and services, build partnerships that optimize synergies and create value for all parties involved. “This deal ticks all those boxes and we are excited to add the Shell range of lubricants to the portfolio of products available to our customers.”

Chairman of Shell companies in Nigeria, Osagie Okunbor, who also commented on the deal, said: “This is a reinforcement of our commitment to continue to optimize our footprints in Nigeria while working with local companies for mutual benefits and to create opportunities for the people. Shell lubricants products will offer improved performance for automobiles across the country through Ardova’s chain of retail stations and resellers”.

Ardova Plc turned profitable immediately the company was acquired from billionaire Femi Otedola, who owned and managed it when it was Forte Oil Plc. The company declared N875.380 million profit after tax in the third quarter of 2020, almost 550 percent increase from the -N190.843 million posted in the same quarter of 2019.

Gross profit rose to N3.599 billion in the same quarter, up from N2.552 billion in the corresponding quarter of 2019.

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