Connect with us

Economy

FG to Earn $6b from OML 65 Development Deal

Published

on

Oil Prices below $50
  • FG to Earn $6b from OML 65 Development Deal

The Federal Government will earn an estimated $6 billion from the development of OML 65, stated Mr. Mansur Sambo, the NPDC managing director.

The Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), on Thursday signed $876 million oil and gas development deal with Cold Water Petroleum Development Company (CPDC) for the development of OML 65.

Mr Sambo, who signed on behalf of NPDC during the ceremony that took place in Grand Hyatt Hotel in Dubai, United Arab Emirates (UAE), said the Federal Government would generate revenue in form of taxes and royalties from the deal.

He also stated that the deal would “open up production potentials of the OML 65 from 9,000 to 40,000 barrels per day and add to the country’s reserve base.”

In the deal tagged ‘the $876 Million Financing and Technical Service Agreement (FTSA)’, Capt. Idahosa Wells Okunbo, Chairman, CDPC, signed on behalf of his company.

Speaking on the agreement, Capt. Idahosa Wells Okunbo, said: “While government is about delivering value, and that is exactly what our core values are, that is what we do in the industry. We thank the president and NNPC for recognizing all our efforts over the years and trusting us with this sort of opportunity at this particular time,” Okunbo said.

“We are also very dedicated to creating those values and bringing the oil that is very much desired in that particular field for so many years.”

“This is a sign of good things to come and this is what this government is about. It is unfortunate that there is no money to pick on the street, people have to use their brains to deliver value to Nigeria and also be able to deliver value to themselves. It is a milestone both for us and the NNPC.”

He added that the CDPC “will strive to do it right so that more people will have the same opportunity we have today because NNPC has a lot of assets that need to be delivered.”

“We proper service delivery and a commitment to the agreement to increase the production on that field and give Nigeria the desired value.”

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.

Economy

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

Published

on

Petrol Importation - investorsking.com

The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

Continue Reading

Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

Published

on

Gas-Pipeline

The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

Continue Reading

Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

Published

on

food storage

Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

Continue Reading

Trending