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$50m Ikwe-Onna Modular Refinery to Commence Operation in 2018

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  • $50m Ikwe-Onna Modular Refinery to Commence Operation in 2018

In the next two years, Ikwe, a remote community in Onna local government area of Akwa Ibom State will come alive as the $50million modular refinery is expected to commence full operation.

A ground breaking and location inspection for the historic refinery in the area was performed by the Akwa Ibom State Governor, Mr. Udom Emmanuel with the Minister of Science and Technology, Dr Ogbonaya Onu, captains of industry, top executives in the oil and gas sector among the dignitaries that attended the event.

The multi-million dollars refinery called Ikwe-Onna Modular refinery occupying a total of 50.1 hectares of land is said to be a model to boost modular refinery in the country and is expected to commence operation in 2018 with daily production capacity of 5,000 barrel of oil.

The Minister of Minister of Science and Technology, Dr. Onu, who was represented by Mr. Ini Nya of the Technology Incubation Centre of the Ministry said that the approval for the establishment of the refinery in the area was government agenda to encourage local contents development in the oil and gas sector.

“The federal government will assist any entrepreneur, innovation, technology and partnership that the private sector has and they want to come in with the federal government, the government is very pleased about it and will support the initiative of the company.

“There are always policies in place for the establishment of refineries in the country and except you have all these policies in place and pass through the due process before you start anything, the federal government will be very angry with whatever you are doing.

“For now the federal government is fighting hard to ensure that bunkering and militancy stops. They don’t have the licence or capacity to go into production and because they do not have that capacity, the federal government is doing everything to ensure that militancy comes to an end”, the Minister said in an interview.

The Board Chairman of the company, Mr. Bassey Rex, said Ikwe-Onna Refinery “is prepared with the intention to show our support and active pursuance of the state government industrialisation plan for Akwa Ibom State.”

The Managing Director of the Ikwe- Onna refinery, Mr. Daminago Ogaji, who shed more light on the project, said the “Ikwe Onna Rifinery is a modular which the federal government is looking at to showcase in all parts of the Niger Delta because Ikwe-Onna Refinery is 100 percent a Niger Delta owned company.”

“We are determined and ready to use our position to drive a unique industrial revolution, being one of the foremost local content refinery promoters in Nigeria and in West Africa to deepen refining capacity of Nigeria and indeed Africa.’’

According to him, on completion, the refinery will produce 5,000 barrels per day and will be beefed up to 20, 000 bpd in medium -term and is expected to hit 100,000 bpd in long term.

He added: “The Model is very different as we bring in the community as co-partners of what we are doing here. They share 10 percent of what we have. So we work symbiotically.

“If you talk of militancy how do you address it without them being part of you and that is the way forward, getting the local community as part owners and we work together as a family.’’

Speaking on engaging the host community in the project, he said: “We intend to also train the local boys because you will find out that there is going to be primarily local content developed company with everything more than 80 percent will be done locally.

“Tank farms, pipelines and others will be done locally. The only thing that comes from outside is less than 30 of the cost. So we only do that for the first model. We will study it and try to develop on that and see how we can build things locally.

“A modular refinery like this will require 30 or more man power requirement as its still small but by the time you build up the manpower requirement will step up.”

On his part, the governor lauded the management of the Ikwe-Onna refinery limited saying it was in line with the vison of the state government to industrialise the state.

Emmanuel who was represented by Chairman, Foreign Direct Investment Committee, Mr. Gabriel Ukpeh, noted that bring the refinery project to the state is a prove of conducive atmosphere provided by the state government for investors to come to the state.

“This project will open up this area to a wide range of economic activities. It will also create jobs for the teeming youths of this area and its environs.

“I, therefore, urge the youths of this community to maintain the peace and deep sense of cooperation with the contractors and be good ambassadors of this community.

“We have endeavoured to keep our campaign promises by executing a number of laudable projects in infrastructure, agriculture and in investment. We shall continue to keep our eyes on the ball. No one can pull us down”, the Governor stressed.

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 market.

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Nigeria to Become Leading Gold Producer in West Africa – Adegbite

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Adegbite Says Nigeria to Become Gold Hub in West Africa

The Minister of Mines and Steel Development, Olamilekan Adegbite, has said Nigeria is on its way to becoming a leading gold producer in West Africa.

Adegbite made the statement in Abuja while taking stock of his first year in office as minister.

He said, “Indeed, the international roadshows we have had in the past have produced fruits. Today, we have Thor exploration in Osun State through the Segilola Gold project.

“The exploration firm is projected to start producing (gold) in the first half of next year. The project is expected to create about 400 direct jobs and 1,000 indirect jobs.”

According to Adegbite, the Federal Government has licensed two gold refineries that would refine in line with the London Bullion Market Association standard.

He added, “Numerous industries will spring up when our gold economy becomes full-fledged. Some of them will include equipment leasing and repairs, logistics and transport, as gold requires a specialised means of transport, security, insurance, aggregators, and so on.”

The minister noted that for the first time, the country had mined, processed and refined gold under the Presidential Artisanal Gold Mining Development Initiative for use as part of Nigeria’s external reserves.

Adegbite also stated that the mines ministry had initiated a process that would lead to local capacity development in the production of barite.

“Presently, the barite that is used in the oil and gas industry is imported. But we are resolved to reverse this trend. As you may know, barite is a critical weighting material in drilling fluids due to its high specific gravity,” he said.

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NUPENG, Lagos State Agree to Call Off Strike

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NUPENG Agrees With Lagos State, Call Off Strike

The Nigeria Union of Petroleum and Gas (NUPENG) has ordered Lagos State Petroleum Tanker Drivers (PTDs) to call off its ongoing strike.

This was disclosed in a joint communique signed by the Lagos Commissioner of Energy and Mineral Resources, Olalere Odusote, and the NUPENG Deputy National President, Solomon Kilanko.

It would be recalled that Investors King had reported that NUPENG directed all PTDs to withdraw their services from Lagos State effective from Monday 10 August 2020 because of the persistent extortions and harassments of PTDs by both uniform security agencies and touts.

However, on the 10th of August, the commencement day of the strike, Lagos State government met with the leadership of NUPENG to address the union concerns and eventually agreed on a way forward.

Part of the communique reads “The Lagos State Government met today with the representatives of NUPENG, which agreed to call off its strike immediately.

“Other decisions taken at the meeting are security – the state government will meet the heads of all security agencies and secure their commitment to ensure the free passage of petroleum products vehicles given their importance to the economy.”

“Area boys’ – the menace of ‘area boys’ will be handled by relevant government agencies and a dedicated phone number will be established, within the next week to ensure the petroleum products transporters have prompt access to security agencies.”

The communique also stated that the Lagos State government will set up a standing committee to communicate with the union on an ongoing basis, saying it will help address a similar issue going forward.  See the complete communique below.

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Crude Oil Expands Gain on US Stimulus talks, Better Than Expected Chinese Factory Data

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Crude Oil Gains on US Stimulus, Better Than Expected Chinese Factory Data

Oil prices extended its gains on Tuesday following a better than expected factory data from China and a possible agreement between Democrats and Republicans on economic stimulus.

“The oil complex is heavily reliant on that aid. We need people to be able to boost economic activity to spur demand,” said John Kilduff, partner at Again Capital in New York.

President Trump on Monday said House Speaker, Nancy Pelosi and Senator Chuck Schumer, top Democrat in the chamber of Congress, wanted to meet him to discuss or make a deal on coronavirus-related economic stimulus.

The possibility of a stimulus deal, coupled with a reduction in China’s factory deflation in the month of July due to the surge in oil prices and improved industrial activity bolstered the outlook of the energy sector.

China is the world’s largest importer of crude oil. Therefore, improved factory activity generally boosts the oil market.

Also, the announcement from Iraq that it planned to cut an additional 400,000 barrels per day in August and September to compensate for its previous overproduction above OPEC+ quota aided the oil market this week.

“This would send out a strong signal to the oil market on various levels. That said, this would also require the international companies operating in Iraq to join in with the cuts,” Commerzbank analyst Eugen Weinberg said.

The Brent crude oil, against which Nigerian oil is priced, expanded from $41.30 per barrel it traded on Monday to $45.40 per barrel on Tuesday at 10:10 am Nigerian time.

UKOilDaily 1While the U.S West Texas Intermediate crude oil rose from $41.48 per barrel to $42.47 per barrel on Tuesday.

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