- Kachikwu Plans Roadshow in Houston to Woo Bidders for Marginal Oil Fields
The Minister of States for Petroleum Resources, Dr. Ibe Kachikwu, has disclosed that he would in the coming weeks attend the Offshore Technology Conference (OTC) in Houston, Texas, United States to woo potential bidders for Nigeria’s upcoming marginal oil field bid rounds.
Kachikwu stated this at a networking dinner held last Wednesday night at the the maiden Nigeria Oil and Gas Opportunity Fair (NOGOF) which was initiated and organised in Uyo, capital of Akwa Ibom State by the Nigerian Content Development and Monitoring Board (NCDMB) to showcase opportunities for advancing local content application in the country’s oil industry.
The minister explained that he would attend the OTC this year in Houston to market Nigeria’s marginal oil fields bid rounds to potential investors. He also noted that the rounds could be completed between 2018 and 2019.
The OTC is an annual oil industry showpiece where energy professionals usually meet in the first week of May to exchange ideas and opinions that could advance scientific and technical knowledge for offshore oil resources and environmental matters.
It is often regarded as the largest event in the world for the oil and gas industry featuring more than 2,300 exhibitors, and attendees representing 100 countries. The conference was founded in 1969.
While Kachikwu did not disclose the number and locations of the marginal oil fields that would be up for bid in the process which is expected to start with his planned Houston roadshow, it is however thought that the fields could be located within the onshore basins and continental shelf.
The government had initially stated that it would conduct a licensing round in 2017 for the allocation of marginal fields, to raise revenue for the country and also grow oil production to meet its production target of four million barrels per day and 40 billion oil reserves.
Also, the Department of Petroleum Resources (DPR) has stated that it would not be in a hurry to grant operational licences that would formalise the operations of illegal oil refineries in the Niger Delta until standard Environmental Impact Assessment (EIA) studies have been conducted on the illegal refineries and their locations.
Speaking yesterday at a technical session on opportunities and challenges in the Nigerian oil and gas industry at the NOGOF, the Assistant Director, Planning and Budget at the DPR, Mr. Wole Akinyosoye, said there were differences between modular refineries and illegal refineries, and that both must not be confused to mean the same thing.
Akinyosoye who represented the Director of DPR, Mordecai Ladan, at the conference, explained that the Department would require a comprehensive EIA from operators of the illegal refineries, after which it would undertake deep studies of them before deciding on operational licenses for them.
He noted that DPR had in the past issued multiple number of licences for modular refineries construction and had also requested for detailed EIA study of the locations of the refineries as provided for in the National Environmental Guidelines and Standards for the Petroleum Industries in Nigeria (EGASPIN).
Akinyesoye added that beyond the EIA report, there were other requirements needed to be fulfilled before licenses for such refinery construction would be granted.
The government had recently stated its intention to formalise the operations of all viable illegal refineries in the Niger Delta as part of its plan to end the menace of militancy and criminality in the region. This plan was subsequently backed by the Nigerian National Petroleum Corporation (NNPC) which stated that it would be an antidote to criminality and vandalism of oil facilities in the region.
Coronavirus – Africa: IMF Staff Completes Staff Visit to Senegal
IMF Visits Senegal to Assess COVID-19 Impacts
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
The Senegalese economy is expected to contract this year as a result of disruptions in economic activity due to the COVID-19 pandemic. A recovery is underway, but uncertainty regarding its speed and extent remains significant; execution of the revised 2020 budget is proceeding largely in line with expectations, with a robust implementation of the Economic and Social Resilience Program (PRES) to address the COVID-19 pandemic; the authorities and the IMF team made considerable progress on key parameters for the draft 2021 budget, ahead of the second PCI review mission planned for late October 2020.
A staff team from the International Monetary Fund (IMF), led by Ms. Corinne Deléchat, conducted a virtual mission from September 9-18, 2020, to update macroeconomic projections, discuss 2020 budget execution and plans for the 2021 budget. At the conclusion of this mission, Ms. Deléchat issued the following statement:
“The Senegalese economy has been severely hit by the COVID-19 pandemic, with real GDP growth now expected to contract by 0.7 percent this year, reflecting the larger-than-anticipated disruptions in economic activity stemming from the pandemic and strict containment measures. A gradual recovery started in May with the lifting of most COVID-19-related restrictions, followed by the reopening of borders in July. Senegal’s strong health response is showing encouraging signs with a steady decline in new COVID-19 cases and hospitalizations over the past four weeks. In 2021, output is projected to rebound back to above 5 percent, boosted in part by favorable prospects for agriculture. This projection is however subject to significant downside risks, reflecting uncertainties around the speed of the global recovery and the evolution of the pandemic, which could continue to affect important sectors of the economy such as tourism, transport and hospitality.
“Budget execution through end-August 2020 was broadly satisfactory, and the objectives for the remainder of the year set in the revised 2020 budget remain within reach. Uncertainties related to the mobilization of programmed resources however remain. Therefore, the mission encourages the authorities to continue with their prudent approach in order to maintain the deficit at around 6 percent of GDP as envisaged in the 2020 revised budget. The mission commends the authorities for the strong and transparent implementation of their Economic and Social Resilience Program (PRES). Most of the planned COVID-19 measures have already been executed, as detailed in the June 2020 quarterly budget implementation report. The mission welcomes the recent repeal of the decree on derogatory procurement procedures for COVID-19 related spending, which will from now on follow the normal procurement procedure. The authorities have also finalized a new recovery plan which aims to support a return to strong and inclusive private sector-led growth, focusing on accelerating the structural transformation process and enhancing the economy’s resilience through diversification of the productive base.
“The mission and the authorities made significant inroads in discussing the contours of the draft 2021 budget. Given high uncertainty and lingering effects of the pandemic on some sectors of the economy, the draft 2021 budget should aim to strike a balance between supporting the recovery, including through a robust investment plan on the one hand, and fiscal and debt sustainability also consistent with the WAEMU’s external stability on the other. To that effect, the 2021 fiscal stance should continue to signal a strong commitment to return gradually to a budget deficit of 3 percent of GDP by 2022, in line with the WAEMU convergence criterion, as the situation normalizes. Discussion on the draft budget will continue in the coming weeks.
“The second PCI review mission will take place in late October 2020, with a Board meeting tentatively planned for December 2020.
“The mission wishes to thank the authorities for the frank, open and constructive dialogue.”
Over 60% of The global Gold Demand is for Jewelry and Investment
More Than 60% of Global Gold Demand is for Jewelry, Investment
Data presented by Buy Shares indicates that jewelry and investment account for 37.29% and 26% respectively of the total global gold demand. As of September 2020, the total global demand for gold stood at 5.29 million kilograms or 186.8 million ounces.
Gold’s role as a safe haven for investment
Central bank’s demand for gold accounts for 12.14%. Other notable sectors in gold demand include bar demand (7.45%), industry (6.07%), electronics (4.86%), coin (3.85%), medals (1.13%), other (0.92%). Dentistry recorded the least demand at 12,587 kilograms or 0.23%.
The research highlighted the growth of gold as an investment avenue. According to the research report:
“Gold as an investment is subject to cyclical volatility since many investors speculate on its value. The high demand for gold for investment can be linked to the fact that the precious metal is considered a safe haven in the event of market volatility. This year, the market experienced the highest volatility rate due to the economic impact of the coronavirus pandemic. In general, gold can be used in portfolios to protect the purchasing power, reduce volatility, and minimize losses during moments of market shock.”
The Buy Shares research also overviewed countries with the highest demand for gold. The research reviewed 15 top countries with the demand totaling to 2,042,725 kilograms as of September 2020.
China has the largest share at 700,442 kilograms, while India is second at 625,561 kilograms. The United States is a distant third with its goal demand almost five times less than China at 148,316 kilograms. Turkey and Germany emerged fourth and fifth at 100,380 kilograms and 90,472 kilograms.
US 2020 Election: Leading Organisations Donate Over $255m for Campaigns
Top 1o Leading Organisations Donate Over $255m Towards US Election campaigns
Ten leading global business organisations have donated over $255 million towards the US 2020 election campaigns, according to recent data compiled by Buy Shares.
The data indicates that the top ten organisations contributed a combined $255.20 million towards the U.S elections campaign as of September 8, 2020.
The report also noted that the Democratic Party receives the largest donations at $135.59 million while the Republican Party followed with $119.61 million.
Across both parties, Uline Inc led with $40.09 million contributions towards the Republican Party campaign.
Other top donors towards the Republican Party include Blackstone Group ($31.97 million), American Action Network ($19.88 million), Las Vegas Sands ($14.06 million), and Adelson Clinic for Drug AbuseTreatment & Research ($13.59 million).
On the other hand, Fahr LLC is the largest contributor towards Democratic Party campaigns at $39.65 million. Other leading donors include Sixteen Thirty Fund ($34.33 million), Paloma Partners ($21.76 million), Senate Majority PAC ($21.41 million), and Carpenters & Joiners Union ($18.42 million).
According to the research report: “There is still debate if the organization’s donations influence politics. According to experts, successful companies usually bet their contributions towards the winning candidates. On the other hand, small firms are likely to back candidates who will lose. Political pundits argue that big companies are in a better position at foreseeing future events. To a large extent, the company’s usually support candidates or political parties that are likely to support their priorities. Additionally, in some incidents, stocks of companies that backed the winning candidate might rise after the election. The boost in stock prices tends to attract investors.”
Campaign contributions are used to cover the cost of travel, political consulting, and other the direct costs of communicating the party’s agenda.
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