- Nigeria, Others Need More Oil Exploration – Sahara Group
A subsidiary of Sahara Group, Asharami Energy, has said oil and gas businesses in Africa need to intensify exploration efforts to guarantee reserve replacement and enhance capacity to meet growing demand and global competition.
The company’s Managing Director, Olajumoke Ajayi, said operators needed to adopt new technology, explore alternative cost-saving measures, ensure sustainable community relations, and build diverse multidisciplinary teams to ensure successful exploration projects.
According to her, Africa’s large volumes of undiscovered oil and gas make the continent a veritable frontier for investment.
In her presentation at the Oil and Gas Council’s Africa Assembly in Paris, she cited the downturn in global oil prices and the corresponding negative effects on investor funds and returns as factors that had made a good number of exploration and production companies in Africa cut down on investments, delay Final Investment Decision or totally stop embarking on new capital projects.
Ajayi said, “Consequently, producing companies continue to pump oil from operated mature fields, thereby depleting existing reserves with non-corresponding efforts for reserve replacement via new exploration discoveries. The big question remains whether or not E&P players should commit to exploration and how players can justify this commitment in the face of lower oil prices.”
She said the compelling case for the relevance of hydrocarbons in the future, in addition to huge investments on new technology, responsible and intentional community engagement, would play a significant role in creating a stable and conducive environment for exploration and production.
“Sahara Group’s exploration success story is being driven by a combination of technology, innovation and community management expertise. At Sahara, we are intentionally committed to creating a sustainable balance between our projects and host communities to ensure the creation of shared value for all stakeholders,” she added.
According to her, strategic community engagements eliminate community interference in operations of capital projects that may lead to significant downtime; and ensure that the host community understands its role as a project stakeholder and treats projects as commonwealth source for the people, among others.
Nigeria’s Exports Under US Duty-free Policy Declines to $300.48m
Nigeria’s Exports to the United States Under Duty-free Policy Declined by 88 Percent to $300.48 million
Nigeria’s total exports under the US duty-free declined by 88 percent from $2,502.86 million to $300.48 million in the first eight months of 2020.
In the latest African Growth and Opportunity Act (AGOA) policy report established in 2000, crude oil export accounted for 99.8 percent of Nigeria’s AGOA exports to the United States in 2019.
In 2019, oil and gas products worth $3.12 billion were exported to the US under the duty-free policy.
However, the plunged in global demand for Nigerian crude oil due to the COVID-19 lockdown weighed on the nation’s oil exports and revenue generation.
The United States imported 5.53 million barrels of crude oil from Nigeria in the first quarter of 2020, down from 15.07 million barrels imported in the final quarter of 2019.
Speaking on the need to improve non-oil export to take advantage of the duty-free like other African nations Mr Olusegun Awolowo, the Executive Director and Chief Executive Officer, Nigerian Export Promotion Council, who spoke at a virtual event recently said despite efforts to sensitise Nigerian exporters on the need to take advantage of the duty-free trade opportunity, only a few Nigerian exporters are benefiting from it.
He said the record crash in global oil prices is an indication that a mono-product economy like Nigeria is not sustainable and that there is an urgent need to develop non-oil export.
“We cannot rely on crude oil export as both our major source of government revenue and foreign exchange generation. We must diversify our export base,” Awolowo said.
Road Projects: Nigeria Owes Contractors More Than N390 Billion, Says Fashola
FG Owes Road Contractors N392 Billion for Road Projects
The Minister of Works and Housing, Babatunde Fashola has said the Federal Government owes companies handling the 711 road projects across the country a total sum of N392 billion.
This, he said was higher than the N276 billion allocated for road projects in the proposed 2021 budget.
The minister disclosed this on Wednesday while defending the 2021 budget of his ministry before the Senate Committee on works.
Fashola said, “With the situation on ground, a stop has come for new projects and the country needs to prioritise the existing ones in order to complete some of them.”
According to him, a total of N6.62 trillion was needed to fund the 711 road projects but because of the limited available resources, there is a need to prioritise the important ones.
He said, “We do not have the resources that we need to fix our road infrastructure at once; the very reason we need to prioritise what want to do.
“The situation on ground requires us to cut our coat according to our cloth and not according to our size because no good will come out of more new road projects now.”
Waltersmith’s 5,000bpd Modular Refinery in Imo State to Commence Operations
5,000bpd Modular Refinery Built in Imo State to Start Operations
The Department of Petroleum Resources (DPR) has said the 5,000 barrels per day Modular Refinery project built in Imo State is ready for operations.
Sarki Auwalu, the Director, DPR, disclosed this during a pre-commissioning visit to the project site in Ibigwe, Imo State.
In a statement released by Waltersmith, Auwalu was quoted as saying the purpose of his visit was to ensure that the refinery was ready to commence operations.
He said “We can confirm that the refinery is very much ready to commence operations. We have seen all the preparations.
“To us, the plant is alive. The commissioning is just symbolic. Everywhere is ready to start off. My overall assessment is excellent.
“We have been to other modular refineries but we have not seen anything like this – the space, the way it is arranged and the way it will work.”
The 5,000 barrels per day modular refinery is scheduled for inauguration this month. The refinery has crude oil storage capacity of 60,000 barrels and it is expected to deliver more than 271 million litres per year of refined petroleum products.
Auwalu said, “The role we play is to enable businesses and create opportunities. When DPR issues you a licence, it enables you to invest and as a result of that opportunity we create, that business is enabled.
“Waltersmith is one of our success stories. We consider the project as ours. We have been tracking their growth and we are happy to see that our child is growing. It is our plan that they expand and they have the potential.”
Speaking on the project, Abdulrasaq Isah, the Chairman, Waltersmith Refining and Petrochemical Company, said the project is the first phase of a series of refinery projects that will lead to the delivery of up to 50,000 barrels per day in refining products.
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