Economy

Nigeria’s Oil Exports to Fall to 2018 Low in July

Published

6 years ago

June 12, 2018

Nigeria’s Oil Exports to Fall to 2018 Low in July

Nigeria’s oil exports are expected to fall in July to 1.43 million barrels per day (bpd), according to the loading plans, the lowest level so far this year.

This is coming as loadings of Nigerian Bonny Light crude, which have already been under force majeure for a month, would likely be further delayed by the closure of Nembe Creek Trunk Line (NCTL) by the operator, Aiteo E & P.

The NCTL and the Trans Niger Pipeline (TNP) are the two major pipelines used by oil companies operating in the eastern Niger Delta to evacuate crude to the Shell-operated Bonny Export Terminal.

Investigation revealed that the NCTL is a major crude oil transportation channel that conveys crude injected from Oil Mining Leases (OMLs) 29, 18, 24, 25, 23 and 55; running from Nembe Creek in Bayelsa State through Cawthorne Channel Field on OML 18 to the Bonny Oil Terminal for export.

The pipeline has a capacity of 150,000 barrels per day at Nembe Creek, but can evacuate 600,000 barrels of liquids from the Cawthorne Channel end.

The 115-kilometre capacity line was built by Shell Petroleum Development Company (SPDC) between 2006 and 2010 at a cost of about $1.1 billion but is currently being operated by Aiteo Group since 2015 when Shell completed the assignment of its interest in OML 29 and the NCTL to Aiteo Eastern E&P Co. Ltd.

It was gathered that there have been recurrent thefts along the pipeline route, which are evidenced by significant pressure reductions on the trunk line, and theft points, which has affected Bonny Light exports.

Reuters reported that the export plan for Bonny Light comprised 48 cargoes, compared with 60 cargoes and a daily rate of 1.796 million bpd in June, largely as a result of an outage on the Bonny Light stream, which has been under force majeure for a month.

July’s export plan also includes four cargoes of Akpo condensate with 123,000 bpd, compared with four cargoes in June with 133,000 bpd.

The export plans showed one extra cargo of Agbami than in June, as well as one more Bonga cargo and an extra Qua Iboe cargo.

It also shows three fewer Forcados and one fewer Escravos, while a number of smaller streams showed no cargoes would load in July.

Nigerian oil export plans are prone to revisions and delays, with cargoes frequently pushed from one month to the next.

In a related development, the loadings of Nigerian Bonny Light crude, which have already been under force majeure for a month, would likely be further delayed by the closure of the Nembe Creek Trunk Line.

The Nembe Creek Trunk Line, which carries Bonny Light, was shut down at the weekend for repairs, according to the operator, Aiteo.

However, the Trans Niger Pipeline, which is a second line that carries Bonny Light remained open.

It was not clear when the Nembe Creek pipeline would reopen but traders said there were at least three tankers that were due to load Bonny Light this week and next, with oil deferred from the May loading programme.

But any liftings would likely be subject to delays of two to three days because of the pipeline closure, Reuters quoted oil traders as saying.

Shipments of Bonny Light remained subject to force majeure, according to a Shell spokesman Monday.

Exports have been under force majeure for a month following a leak further up the pipeline.

Between 30 and 33 cargoes are said to be available for sale from the 48 cargoes in the Nigerian July programme, which would likely keep differentials under pressure, traders said.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

World Bank VP Lauds CBN Governor Cardoso’s Inflation-Fighting Policies

Published

1 day ago

October 16, 2024

Bassey Marshall

The Senior Vice President of the World Bank, Indermit Gill, has praised the Governor of the Central Bank of Nigeria, Yemi Cardoso, over his approach to managing inflation in the country.

Gill made this known during his address at the 30th Nigerian Economic Summit organized by the Nigerian Economic Summit Group in Abuja, on Monday.

The World Bank VP decried the high cost of petrol occasioned by the subsidy removal of President Tinubu’s government and the untold hardship it has imposed on Nigerians.

However, he hailed the interest rate increase by the central bank which according to him will boost confidence in the Naira and anchor inflationary expectations.

Gill emphasized that Governor Cardoso through his policies has been steering Nigeria in the right direction.

Meanwhile, Gill noted that Nigeria is just in the beginning stage of reaping the benefits of these policies.

According to him, the country will need to sustain the momentum for a period of ten to seventeen years, before achieving the desired outcome.

He revealed that countries like India, Poland, Korea, and Norway have benefitted from the approach.

He said, “Implementing such a far-reaching reform is impossible without a solid political commitment from the top. The price of PMS has quadrupled since the subsidy cut, imposing terrible hardship across the breadth of Nigeria’s society.

“The Central Bank has had to hike its policy by a huge 850 basis point, almost 9 percentage points in the last month to boost confidence in the naira and anchor inflationary expectations.

“The Central Bank financing of fiscal deficit has finally ended, and Governor Cardoso has been putting Nigeria or helping to put Nigeria on the right course.”

“But this is only the beginning, Nigeria will need to stay the course for at least 10 to 17 years to transform its economy. If it does that, it will transform its economy.

“And it will become an engine of growth in Sub-Saharan Africa. And he will help to transform Sub-Saharan Africa. It’s very difficult to do these things, but the rewards are massive.

“This is the lesson from the last forty years as well as the experience of countries such as India, Poland, Korea and Norway,” Gill said.

Investors King reported that on September 24, 2024, the apex bank announced another increase in its Monetary Policy Rate (MPR) to 27.25% from 26.75 percent.

The decision was made during the Monetary Policy Committee (MPC) meeting chaired by CBN Governor, Yemi Cardoso.

Economy

Sanwo-Olu Unveils Lagos Red Line Rail For Commercial Operations

Published

1 day ago

October 16, 2024

Ugwoke Ogbodo

The Governor of Lagos State, Babajide Sanwo-Olu, has officially unveiled the LMRT Red Line for commercial operations.

The governor said the Red Line is the second rail system to become operational in less than two years in the state.

The 27-kilometre Red Line has eight stations at Oyingbo, Yaba, Mushin, Oshodi, Ikeja, Agege, Iju, and Agbado.

The train service is projected to transport about 500,000 Lagosians daily as the schedule is increased, providing a viable means of commuting.

In a post on his verified social media handles on Tuesday, Sanwo-Olu warned against vandalisation of the project, saying his government wouldn’t tolerate the destruction of public property.

Sanwo-Olu wrote, “Dear Lagosians, today marks the launch of commercial operations of the LMRT Red Line, commencing passenger services from Agbado to Oyingbo.

“We’re on a mission to keep Lagos moving, and the Red Line is a key part of our vision to create a seamlessly connected city. It is also our second rail system to become operational in less than two years.

“Spanning 27, the Red Line has eight stations at Oyingbo, Yaba, Mushin, Oshodi, Ikeja, Agege, Iju, and Agbado. The train service is projected to transport about 500,000 Lagosians daily as we ramp up the schedule and provide a viable means of commuting.”

He added that daily passenger services will depart from Agbado at 6:00 AM, with the second train leaving Iju Station at 7:30 AM.

“Ensure you have your Cowry Card ready to board,” he noted.

He urged residents to treat the project with the respect it deserves, stressing that “vandalism or disruptions will not be tolerated.”

He said, “Together, we can ensure that our trains remain a safe and enjoyable experience for everyone.”

Economy

Nationwide Blackout as National Grid Partially Collapses, Akwa Ibom Power Supply Remains Unaffected

Published

2 days ago

October 15, 2024

Yetunde Olugbenga

A partial collapse of the national grid has been reported by electricity distribution companies, resulting in a blackout in most parts of the country.

However, the Akwa Ibom Generating Station was “islanded,” allowing it to continue supplying electricity to neighboring cities.

The spokesperson for the Transmission Company of Nigeria (TCN), Ndidi Mbah, disclosed this during a chat on Monday evening.

Mbah explained that the Akwa Ibom Generating Station was “islanded” to enable continuous power supply through the Eket, Ekim, Uyo, and Itu 132-kilovolt substations.

“The entire system did not collapse, as the IBOM Generating Station was islanded (i.e., separated to stand alone and continue supplying some areas to avoid a total system failure), allowing it to supply electricity through the Eket, Ekim, Uyo, and Itu 132kV substations,” she said.

Mbah further disclosed that the collapsed national grid was partial as TCN has begun system recovery to restore normalcy in the affected area.

“Recovery is currently ongoing and has advanced significantly.” She said.

Mbah’s disclosure about the Akwa Ibom generating station being “islanded” came shortly after Emeka Ezeh, Head of Corporate Communications at the Enugu Electricity Distribution Company (EEDC), confirmed the national grid’s collapse around 6:48 p.m. on Monday.

“…of a general system collapse that occurred at 18:48 hours today, 14th October 2024.” He stated.

Speaking about how to restore power, a statement signed by Ezeh revealed that the EEDC is on standby to restore supply from Osogbo.

“We are on standby awaiting detailed information of the collapse and restoration of supply from the National Control Centre (NCC), Osogbo,” the statement read.

“Rest assured, we are working with the relevant stakeholders to restore power as soon as the grid is stabilised. Thank you for your understanding”, the statement indicated.

The Abuja Disco also reported the grid collapse at 6:58 p.m.

“Dear Valued Customer, Please be informed that the power outage being experienced is due to a system failure from the national grid at 6:58 pm today, affecting the power supply to our franchise areas”, the Abuja Disco declared.

It was reported that the collapsed electricity grid has vehemently thrown the nation into a blackout. Moreover, at the time of this report, power supply is yet to be restored across parts of the country.