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Nigeria’s Security Situation Remains Sensitive – Shell

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Shell
  • Nigeria’s Security Situation Remains Sensitive – Shell

Global oil and gas giant, Royal Dutch Shell, has said the security situation in Nigeria, where it is the largest oil producer, remains sensitive.

The oil major, which announced its fourth quarter 2017 results on its website on Thursday, stated this while giving its outlook for the first quarter of this year.

It said its total production in Nigeria increased to 170,000 barrels of oil equivalent per day in the fourth quarter of 2017 from 159,000 boepd, 165,000 boepd and 141,000 boepd in the third, second and first quarters, respectively.

The company’s production in Nigeria fell to as low as 105,000 boepd in the third quarter of 2016 amid a resurgence of militant attacks in the Niger Delta.

Profits at Shell more than doubled in the fourth quarter of last year, as the recovery in oil prices coupled with cost cuts after a three-year downturn fuelled resurgence in profitability. Its earnings on a current cost of supplies basis were $4.3bn, compared with $1.8bn in the same period of 2016.

Its liquids production available for sale in Nigeria stood at 53,000 bpd in the fourth quarter, compared to 32,000 bpd in the same period of 2016.

The oil major’s natural gas production available for sale in Nigeria increased to 677 million standard cubic feet per day from 616 million scfpd in the third quarter.

On its outlook for the first quarter of this year, Shell said, “Compared with the first quarter of 2017, upstream earnings are expected to be negatively impacted by a reduction of some 270,000 boepd associated with completed divestments, and positively impacted by some 40,000 boepd associated with lower maintenance activities.

“Earnings are expected to be positively impacted by 40,000 boepd associated with restored production in Nigeria; however, the security situation remains sensitive.”

After a year of ceasefire, militants under the aegis of the Niger Delta Avengers in January this year, threatened to attack some offshore oil and gas facilities in the oil-rich region in a few days’ time.

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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Fuel Scarcity: NUPENG to Commence Strike on Monday

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Petrol Importation

Lagosians Should Brace for Fuel Scarcity as NUPENG Embarks on Strike

Nigerians should brace for fuel scarcity as the national leadership of the Nigeria Union of Petroleum and Natural Gas (NUPENG) directed all petroleum tanker drivers to withdraw their services from Lagos State starting from Monday, 10 August 2020.

In a statement released by NUPENG on Friday, the union said the directive followed the failure of various authorities in Lagos State to address three major issues that had impacted the operations of petroleum tanker drivers in the state for several months.

The statement signed by the National President, Williams Akporeha and the General Secretary, Olawale Afolabi, NUPENG and titled title ‘NUPENG leadership directs withdrawal of services by petroleum tanker drivers in Lagos State with effect from Monday, August 10, 2020,’ noted that members of the union are frustrated and pained by the barrage of challenges faced while carrying out their activities in Lagos State.

NUPENG said, “The entire rank and file members of the union are deeply pained, frustrated and agonised by the barrage of these challenges being consistently faced by petroleum tanker drivers in Lagos State and are left with no other option but to direct the withdrawal of their services in Lagos State until the Lagos State Government and other relevant stakeholders address these critical challenges.

“It is sad and disheartening to note here that we had made several appeals and reports to the Lagos State Government and the Presidential Task Force for the decongestion of Apapa on these challenges but all to no avail.

NUPENG listed the major challenges faced by petroleum tanker drivers in Lagos State as extortion and harassment by various security agents and, area boys’ (miscreants).

This menace must stop and the leadership of these security operatives in Lagos State must go all out to call their men to order with immediate effect.

The Union added that it is sad that the security agents who were expected to ensure the free flow of traffic and protection of road users were the same people using their uniforms and arms to intimidate, harass and extort money from petroleum drivers in Lagos State.

Therefore, it said it had embarked on an indefinite strike to force the Lagos State Government to address the situation.

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Economy

NLC Gives Airlines Two Weeks to Reverse Mass Lay-offs

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Nigeria Labour Congress

NLC Goes After Bristow, Air Peace, Demands Reversal of Mass Lay-offs

The Nigeria Labour Congress on Friday rejected the recent sack of 100 Pilots by Air Peace, 70 Pilots by Bristow Helicopters and staff of the National Union of Air Transport union working with Turkish Air.

In a statement released by the Union, Mr. Ayuba Wabba, the President, NLC, described the action of the companies as “insensitive, callous and unjust”.

Earlier in the week, Air Peace, Nigeria’s largest carrier announced it would be letting go of 70 pilots as it struggles to curb the impact of COVID-19 on its finances.

This was followed by Bristow Helicopters’ announcement that it would be letting go of 100 Pilots and Engineers as it can no longer support them due to its decline in its financial position.

While the companies have blamed COVID-19 and lack of government support for their decision to cut costs to remain afloat, experts believed the decision was as a result of recent union activities of the affected staff.

Bristow staff had embarked on strike on Monday after talks between the Nigerian Association of Air Pilots and Engineers (NAAPE) and the management of the company broke down despite giving them three days strike warning.

Wabba said no worker should be sacked or penalised for participating in union activities.

He said, “The unilateral sack of executive members of the National Union of Air Transport Employees working with Turkish Airline is particularly distressing.

“These workers were sacked for fighting for the rights of Nigerian workers in Turkish Air.

“This is very reprehensible. We wish to remind Turkish Air that unionised workers cannot be punished or sacked for participating in trade union activities.

“This action is aimed at frustrating unionisation in Turkish Air and to enslave Nigerians working with Turkish Air.”

Wabba emphasised that the Union would not stop advocating for the dismissed workers. The President of NLC, therefore, called on the management of Turkish Air, Air Peace and Bristow Helicopters to reinstate all workers within two weeks.

He warned that failure to comply with the Union demand would be met with mas action across Nigeria’s workforce.

He said, “We call on the management of Turkish Air, Air Peace and Bristow Helicopters to reinstate all the sacked workers within two weeks.

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Economy

Brent Crude Oil Pulls Back to $44 Per Barrel

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Brent crude

Brent Drops from $46 Per Barrel to $44 on Friday

Brent crude oil, against which Nigerian oil is measured, pulled back on Friday morning during the New York trading session to $44 per barrel.

The commodity rose on Tuesday on hopes that the United States is working on a new economic stimulus package and signs that the world’s largest economy is making progress with COVID-19.

“Crude prices turned positive on stimulus hopes and after another positive round of economic data showed manufacturing recovery continued in June,” said Edward Moya, senior market analyst at OANDA.

Brent crude oil rose as high as $46.21 per barrel on Wednesday before pulling back to $44.47 per barrel on Friday amid concerns that the second wave of COVID-19 would eventually weigh on the demand for the commodity and disrupt whatever plans OPEC and allies have to curtail further decline in oil prices.

UKOilDailyUS Oil, West Texas Intermediate (WTI) crude oil declined from $43.49 per barrel it was sold on Wednesday to $41.35 per barrel on Friday.

However, experts think the new US stimulus would bolster market outlook and increase global oil demand with demand in consumer goods.

“Hopes are still running high for another round of fiscal stimulus,” said Stephen Brennock of oil broker PVM. “Failure to extend aid would deal a massive blow to the recovering U.S. economy and the fragile oil demand outlook.”

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