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First Oil Expected From Egina Field in Q4 2018

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Aveon Offshore Limited
  • First Oil Expected From Egina Field in Q4 2018

Egina oil field, a major deepwater development in Nigeria, is expected to achieve first oil in the fourth quarter of 2018, with a capacity to increase the nation’s oil production by 200,000 barrels per day.

The Egina Floating Production, Storage and Offloading vessel is planned to sail away from Samsung Heavy Industries yard in South Korea for Nigeria by the third quarter of this year and should be in Nigeria in the fourth quarter, according to Total, the operator of the field.

The Managing Director and Chief Executive Officer, Total Upstream Companies in Nigeria, Mr. Nicolas Terraz, has said the oil major is committed to Nigeria despite the volatility in the global oil and gas industry.

He said the Total Group had invested $10bn in the Nigerian oil and gas sector in the last five years, with expertise and strong positions in the onshore, offshore and deep offshore.

“Our Egina field development, which is near completion, is expected to add 200,000 barrels per day to Nigeria’s output when it comes on stream in 2018,” Terraz said at the Nigerian Annual International Conference and Exhibition organised by the Society of Petroleum Engineers in Lagos.

He said, “Our industry is volatile; the world in a constant flux. And with our different backgrounds and perspectives, these sometimes constitute hurdles in the attainment of common objectives.

“In spite of this, Total is unflinchingly committed to the future of Nigeria. The company is present along the value chain from upstream to the downstream sector where Total is a leader, with close to 550 service stations across the length and breadth of Nigeria.”

According to him, the industry is facing a shakeout as oil price is still low and the economy is recovering from recession.

He highlighted the need to position the Nigerian oil industry to be able to absorb the vagaries of fluctuating price regimes, uncertainties and other challenges within the operating environment.

Terraz said, “Although the oil and gas business is a global one, we believe that the time has come for the SPE, other professional bodies in the industry and all other stakeholders to look inwards for home-made solutions that will help Nigeria cushion the effects and ride the wave of ups and downs, the good times and the bad times, in an increasingly unpredictable global market.

“There is no gainsaying the fact that global market conditions might be identical but the local circumstances of nations are unique to them. And so are the solutions.”

He said Total would continue to partner the SPE, the government, its partners and all stakeholders to build and nurture a stable oil and gas industry insulated from the oscillatory discomfort of the waves of boom and bust.

Speaking on the sidelines of the event, the company’s Executive Director, Corporate Affairs and Services, Mr. Abiodun Afolabi, said the six locally fabricated topside modules would be integrated on the FPSO at the SHI-MCI yard in Lagos before final sail-away to Egina site, deep offshore Nigeria.

“All is on course for first oil around first quarter 2018,” he said.

He said Total had made a commitment to deliver 300 million standard cubic feet per day of gas to the domestic market, corresponding to the capacity of its gas transportation infrastructure.

Afolabi said the oil major had received a number of Gas Purchase Orders from the Gas Aggregation Company of Nigeria.

“The first GPO was for supply of 100MMscf/d to Alaoji Power Station. The second GPO is to supply 126MMscf/d of gas to Indorama Petrochemicals proposed methanol plant for start-up in 2019. A third GPO to cover the remaining capacity of the NOPL i.e. 74MMscf/day, is currently being discussed with the GACN,” he said.

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 long experience in the global financial market.

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Economy

Lagos Lowers Land Use Charges, Waives N5.75bn in Penal Fees

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land use charges

Lagos Reduces Land Use Charges to Pre-2018 Fees

In a bid to ease economic burden and support growth across Lagos State, the commercial hub of Nigeria, the state government has reduced land use charges and other penal fees.

Dr. Rabiu Olowo, the Commissioner for Finance, disclosed this on Wednesday in a statement titled ‘Speech delivered by the honourable commissioner for finance at a press briefing on the 2020 new land use charge law.’

Lagos State Government said land use charges and other fees are revised down to pre-2018, adding that the state will henceforth uphold the 2018 method of valuation.

Accordingly, the state waived the penal fees for 2017, 2018 and 2019. Translating to N5.75 billion in potential revenue.

“In addition to this, there is also a 48 per cent reduction in the annual charge rates,” Olowo stated.

He further stated that owner-occupied residential property was lowered from 0.076 per cent to 0.0394 per cent; industrial premises of manufacturing concerns, from 0.256 per cent to 0.132 per cent; and residential property/private school (owner and third party, from 0.256 per cent to 0.132 per cent.

Olowo added that commercial property — used by the occupier for business purposes — was reduced from 0.76 per cent to 0.394 per cent; and vacant properties and open empty land, from 0.076 per cent to 0.0394 per cent.

While the annual charge rate for agricultural land was revised down by 87 per cent from 0.076 per cent to 0.01 per cent.

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FG Spends N2.37 Trillion on Petrol Importation in 13 Months, Says NNPC

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Petrol Importation

NNPC Sells 950.67m Litres of Petrol In May

The Federal Government imported petrol valued at N2.37 trillion into the country in thirteen months, according to the Nigerian National Petroleum Corporation (NNPC).

On Wednesday, the corporation said revenue from the sales of white products stood at N2.39 trillion between May 2019 and May 2020.

It, therefore, stated that petrol contributed about 98.84 percent or N2.37 trillion of the total sales generated during the period.

In May, the corporation said it realised N92.58 billion from the sale of petrol. NNPC said the product was sold through its subsidiary, the Petroleum Products Marketing Company (PPMC).

According to the May 2020 version of the corporation’s Monthly Financial and Operations Report quoted by Kennie Obateru, the Group General Manager, Public Affairs Division, NNPC, 950.67 million litres of white products (only petrol) was sold by PPMC in the month.

This, he said “comprised 950.67 million litres of Premium Motor Spirit, popularly called petrol, only, with no Automotive Gas Oil or Dual Purpose Kerosene.”

“There was also no sale of special product in the month.”

Nigeria continues to depend on importation for its petrol supplies due to local dilapidated refineries that have failed to operate at optimal level despite billions of dollars budgeted for maintenance yearly.

Experts have said petrol importation is one of the main reasons the nation’s foreign reserves continues to struggle, especially at a period when oil prices are trading at a record low with broadly low demand for the commodity.

Nigeria’s foreign reserves is presently hovering around $36 billion, down from its record high of $45 billion attained in June 2019. The decline has also impacted the ability of the Central Bank of Nigeria to support the Nigerian Naira.

The Naira has been devalued by 15 per cent in the last four months and was recently adjusted from N361 a US dollar to N381 per US dollar on the Investors and Exporters forex window to ease the pressure on the reserves.

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Amaechi Urges National Assembly to be Careful Probing Chinese Loans

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Amaechi Says China is Becoming a Bit Apprehensive About Giving Money to Nigeria

The Minister of Transportation, Chibuike Amaechi, on Tuesday said he specifically urged the National Assembly to be careful about the ongoing probe of Chinese loan agreements.

The minister who appeared in a live television programme with the Minister of Justice/Attorney-General of the Federation, Abubakar Malami, said China is becoming a bit apprehensive about releasing additional loans to the country.

He said, “You know, I specifically urged the National Assembly to please be careful about this probe on the loan agreements. It is because we are trying to make an application for the Port Harcourt Maiduguri rail.

“If nothing else is happening, you know that our brothers are already saying that we don’t want to do any rail project in the South-East.

He added, “Now that we are planning to say that they should give us some loan for us to construct Port Harcourt to Maiduguri, and we are about to go to cabinet for approval, you are now shouting these terms are bad, Chinese people are wicked.

“How will they give you the money? I have documents to the effect that we are getting signals that they are becoming a bit apprehensive on whether we are doing this because we don’t want to pay them back.

Amaechi said the nation must learn to pay back procured loans, saying the $500 million loan obtained for the Abuja-Kaduna railway was presently being serviced.

He said, “Nobody has signed out anything. A sovereign nation is a sovereign nation; nobody can recolonise us. We must learn to pay our debts and we are paying, and once you are paying, nobody will come and take any of your assets.”

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