- NNPC Shifts 40 Billion Oil Reserves Target to 2025
The Nigerian National Petroleum Corporation has said it seeks to increase the nation’s crude oil reserves to 40 billion barrels and production capacity to four million barrels per day by 2025.
The Federal Government in 2010 set the target of 40 billion barrels of crude oil reserves and production of four million barrels per day at 2020.
The Group Managing Director, NNPC, Dr Maikanti Baru, on Thursday, gave the indication that the corporation was seeking to attract necessary funding from the capital market for the development of the nation’s oil and gas resources.
In his address on the state of the industry, titled ‘Moving Nigeria towards energy self-sufficiency,’ at the Society of Petroleum Engineers’ Oloibiri Lecture Series and Energy Forum 2019, Baru said, “There is increasing global competition on Nigerian crude oil due to the rise of new production centres across the globe particularly in Africa and Argentina. These portend a new dimension for the Nigerian oil and gas industry.
“Nigeria, therefore, needs to unlock new barrels as quickly as possible to stay relevant in the new emerging world. Without adequate funding, we cannot meet the targets.”
Baru stated that evolving new funding mechanisms for the Joint Venture operations was part of the focus of the reforms undertaken by the government to eliminate the often difficult cash call regime, enhance the efficiency of the management of oil and gas resources and guarantee growth.
He observed that to encourage the existing players in the industry, particularly the traditional JV partners, “we undertook to settle all outstanding cash call arrears amounting to a negotiated sum of a little over $5bn.
“This has restored confidence in the Nigeria oil and gas industry. We have signed third-party financing deals with several international and local banks on new oil and gas developments worth over $3bn despite the depression in 2016/201 7. This demonstrates the faith in our industry and the potential we can unlock.”
He further stated that the oil firm was on the move to attract funding from the capital market.
“For our IOC partners, we would continue to leverage the strong credit rating of partners, identify key quick-win projects that are easy to mature with strong cash flow projections and attract the necessary funding from the capital market,” Baru said.
He added, “These alternative financing approaches to fund NNPC’s JV obligations have helped to renew investors’ confidence and stimulate further foreign direct investments. In particular, this has deepened local banks’ participation in financing the upstream sector as the financing are syndicated from local banks and international lenders.”
The GMD said the country’s petroleum product demand was expected to grow from 13.2 million metric tonnes in 2015, 15.1 million metric tonnes in 2020 and 17.3 million metric tonnes by 2025, while the population growth corresponding to the demand was 182 million in 2015, projected to be 207 million in 2020 and 234 million in 2025.
“The average population growth rate is three per cent per annum,” Baru stated.
He noted that Nigeria needed a refining capacity of 1.52 million barrels per day of crude oil in order to meet its Premium Motor Spirit requirement by 2025.
According to him, this capacity requirement includes Dangote’s 650,000 barrels per day refinery and NNPC’s current nameplate capacity of 445,000 barrels per day for its three refineries in Warri, Kaduna and Port Harcourt.
He said, “This leaves a shortfall of 20 million litres which is equivalent to 427,000 bpsd. In order to address this shortfall in PMS demand, NNPC is adding 215,000 bpsd of refining capacity through private- sector driven collocation at our existing facilities in Port Harcourt Refining Company (100,000 bpsd) and Warri Refining and Petrochemicals Company (115,000 bpsd).”
On measures put in place to ensure full energy sufficiency for Nigeria, Baru stated that NNPC was focusing on developing the nation’s gas resources.
He said the seven critical gas development projects targeted to deliver about three billion standard cubic feet of gas per day resources to the gas market by 2020 were at different stages of development in conjunction with the NNPC joint venture partners.
Baru said “The Assa North-Ohaji South Gas Development Project is ahead of the other projects. We have completed the Front End Engineering Design for facilities and pipelines for ANOH and have taken the Final Investment Decision for the project in December 2018 after lingering for many years.”
The GMD also noted that there had been an emerging class of new producers within the oil and gas Industry who were primarily local independents with a non- diversified portfolio and lean balance sheet or required track record to raise substantial funds.
“They have become important because approximately 15 per cent of both crude oil and gas reserves and national production lie in their hands. They also require substantial capital for growth. The Nigerian oil and gas landscape is fast changing from IOC-dominated to a much more diversified cocktail of influences involving locals, independents and the national oil company (NNPC),” he stated.
He added that it was quite an exciting time ahead for the Nigeria oil and gas industry, as the industry was funding both development and infrastructure through alternative means.
IMF to Review Nigeria’s Growth Forecast Amid Destruction of Businesses, Properties
IMF Says it May Review Nigeria’s Growth Amid Recent Development in the Country
Following the destruction of businesses and properties that trailed the #EndSARS protest, the International Monetary Fund (IMF) has said it may review the nation’s growth forecast in view of the new development in the country.
Abebe Selassie, the Director, African Department, International Monetary Fund, made the statement while responding to questions during a virtual IMF press conference on the economic outlook of Sub-Saharan Africa on Thursday.
According to him, the protest is difficult given that Lagos is a very important economic hub and contributes to the overall Nigeria activities.
Selassie said, “On the growth projections in Nigeria, I mean, these protests happened of course, after we had closed, after the period where the data we looked at in making the growth projections for this economic outlook.
“And much will depend really on how these protests evolve.
“Lagos of course, is a very important economic hub and contributes quite a bit of economic activity to overall Nigeria activities.
“So, if these persist and are showing significant effects on economic data, we will internalise them in due course.”
He further explained that the nation’s economy had been a difficult one in the last four years ever since oil prices plunged in 2015-16.
He said, “I think this is exactly why we have been on the record in Nigeria about how really critical it is to get all of the policy induced barriers out of the way to facilitate stronger economic growth.
“For the government to do more to raise revenues through the area of non-oil resources to be able to invest in health education which would, you know, allow people to be more successful at getting jobs but also improve the economy’s potential.
“So, I think that development agenda that Nigeria has, I think, has to be tackled with gusto and vigor so that the millions of jobs that the country needs can be created.”
Oil Marketers Lose Millions as Hoodlums Set Petrol Tankers on Fire
Oil Tankers Burnt by Hoodlums as Marketers Lose Millions to Protest
Oil marketers lost millions of Naira to repeated attacks by hoodlums exploiting the #EndSARS protest.
The Independent Petroleum Marketers Association of Nigeria on Thursday said hoodlums have been attacking their trucks since they hijacked the protest earlier in the week.
The association said three petrol laden trucks were burnt again on Thursday in Warri, Delta State.
This came as the Board of Trustees of the Oil and Solid Mineral Producing Area Landlords Association of Nigerian urged protesters across the country to sheathe their swords as the destruction of oil assets and others had become alarming.
Chief Chinedu Ukadike, the Public Relations Officer, IPMAN, who spoke in Abuja said three petrol tankers with petroleum products estimated at about N90 million were set on fire on Thursday.
He said, “The protesters are burning our petrol trucks as we speak right now in Warri. They are burning three trucks. The cost or value of the content in those trucks is about N90m.
“That is outside the worth of the trucks that are being burnt. This is why we asked our tanker drivers to park or temporarily halt the movement of products.”
Ukadike said the association decided to halt the movement of petroleum products on Wednesday to avert a further disaster that could arise attack of oil tankers by angry protesters.
“That advise on the temporary halt of tankers movement was vital, particularly for volatile locations where protesters are highly aggressive. So that is what is happening now in Warri, the petrol trucks of oil marketers are being burnt,” he stated on Thursday.
LCCI Says FG Loses N700bn to #EndSARS Protest in 12 Days
Nigeria Loses Over N700 Billion to #EndSARS Protest in 12 Days
The Federal Government lost over N700 billion to the #EndSARS protest in twelve days, according to the Lagos Chamber of Commerce and Industry (LCCI).
Mrs. Toki Mabogunje, the President, LCCI, disclosed this while reviewing the economic implications of the just ended #EndSARS protest.
Mabogunje, who appreciated the value of citizens engagement and the demand for accountability which the protest represents, lamented the negative effect on the nation’s economy.
She said, “These are in consonance with democratic norms. They also form vital ingredients for good governance.
“LCCI is however concerned about the negative impact that the protracted nature of the EndSars protests has on business activities across the country.
“Over the past twelve days, economic activities have been crippled in most parts of the country and has been particularly profound in the urban areas.
“The Nigerian economy has suffered an estimated seven hundred billion naira (N700 billion) loss in the past twelve days.”
She further said the protest has reawakened the need to reform the shortcomings in the nation’s political governance, however added that to protect livelihoods of Nigerians, including business community, the protesters need to move to next stage of civic engagement.
“This is necessary to reduce the massive disruptions, blockades and barricades around our major cities and interstate highways. These actions have been at great cost to the economy and the welfare of Nigerian citizens. It should be noted that our economy is still reeling from the shocks of the Covid 19 Pandemic and struggling to recover from its devastating effects,” she added.
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