Nigeria lost N77.87 billion worth of crude oil and other petroleum products in 2013, the Nigerian National Petroleum Corporation, NNPC, has revealed.Read More →
The Department of Petroleum Resources, DPR, the regulator of the nation’s petroleum industry, said it will sanction petroleum marketers who engage in the manipulation of their pumps and adulteration of products.Read More →
First Bank Plc has expressed willingness to support the funding of a $1.3billion fabrication contract by Kaztec Engineering, a subsidiary of the Chrome Group, awarded by Addax Petroleum.Read More →
The Federal Government has announced plans to establish a 1000 mega watts coal power plant in Enugu state.Read More →
The Nigerian Union of Pensioners, Electricity Sector, Rivers/Bayelsa Chapter has protested against the non-payment of their arrears and pension for over nine months.Read More →
Shell Nigeria Gas, SNG, has alerted members of the public on the dangers of encroaching on the pathway of gas pipelines in a campaign targeting its business areas in Ogun, Rivers, and Abia states.Read More →
Nigeria earned about $38.19 million, about N6.11 billion from the lifting of 132,224 metric tonnes, MT, (about 966,822 barrels) of Natural Gas Liquid, NGL, in May 2014, the Nigerian National Petroleum Corporation, NNPC, has said.Read More →
The Federal Government has announced a N213-billion facility to help offset the legacy gas debts and address the revenue shortfall in the power sector.Read More →
The non-passage of the Petroleum Industry Bill, PIB, has started to take its toll, as foreign investments into the oil and gas sector dropped by $197.31 million, about N31.6 billion in three months, between April and June 2014.Read More →
It is no gainsaying that technology has changed practically every facet of the human life from lifestyle to living, and most importantly the way humans do their works.Read More →
A Consortium of foreign financial institutions has generated a total of $400 million to construct a 260-megawatt, MW, power plant to be located in Ewekoro, Ogun State.
Lafarge Nigeria Limited, the cement manufacturing company is the lead arranger of the deal, which also includes the International Finance Corporation, IFC, a subsidiary of the World Bank; Wartsila-Development; and Financial Services Company based in Finland.Read More →
The uncertainty of distribution companies, DISCOs, to recoup their investments may be hampering their desire to patronise local meter manufacturers, as it takes a long time to recoup investment from locally manufactured meters.Read More →
Following the surge in illegal activities in the Solid Minerals sector, the Minister of Mines and Steel Development, Mr. Musa Sada, has condemned the continued smuggling of mineral resources out of the country.Read More →
Nigerians will be compelled to pay a sudden 48 percent price increase for liquefied petroleum gas, LPG, also known as cooking gas, as a 12.5 kilogramme of the product has risen to N4,000, up from N2,700 previously.Read More →
Energy firms are owing banks in Nigeria about N2.644 trillion as at end-December 2013, the Central Bank of Nigeria, CBN, has stated.Read More →
The National Sugar Development Council, NSDC, said the sugar sector could contribute 411 megawatts of electricity to the national grid, in line with the federal government’s quest to boost energy supply in the country.Read More →
The Federal Government has said that the proposed National Policy on renewable energy and energy efficiency was conceived to boost electricity supply nationwide.Read More →
THERE are indications that world petroleum and other liquid fuels consumption may rise to 38 percent by 2040, spurred by increased demand in the developing Asia and Middle East, according to projections in International Energy Outlook 2014, IEO2014.
The IEO2014, recently released by the U.S. Energy Information Administration, EIA, however, stated that though Nigeria increased its output from deepwater fields in recent years, onshore production has declined.
It added that infrastructure constraints and incidents of oil theft and attacks on pipelines have curbed production growth and are expected to continue in the near-to mid-term. It also said that the West African OPEC crude and lease condensate production will increase to 5.3 million barrels daily (MMbbl/d) in 2040, from 4.4 MMbbl/d in 2010.
The report noted that Angola is expanding its offshore deepwater production, and as relative geopolitical stability improves, is likely to develop onshore exploration and production areas as well.
To meet the government’s goal of maintaining oil production at around 2 MMbbl/d, state-owned Sonangol plans to make substantial exploration and development investments in deepwater and ultra-deepwater areas of its Congo Fan region.
It will also develop pre-salt resources in the Kwanza and Benguela basins. It estimated that around $30 billion is expected to be invested in 12 deepwater developments between 2013 and 2020.
The report said that the Organisation of Petroleum Exporting Countries, OPEC, will maintain a cohesive policy limiting supply growth, rather than maximising total annual revenues. It also said that no geopolitical events will cause prolonged supply shocks in the OPEC countries that could further limit production growth.
Accordingly, world oil prices will trend downward, from $113 per barrel in 2011 to about $92 in 2017, and then increase steadily to $141 per barrel in 2040.
It also said that OPEC producers will invest in incremental production capacity to enable them to increase crude and lease condensate production by 14.2 MMbbl/d from 2010 to 2040. This will account for between 41 and 47 percent of total crude and lease condensate production worldwide over the course of the projection.
The IEO2014 further said that crude and lease condensate production in OPEC’s North African member countries, Libya and Algeria is projected to decline from 3.2 MMbbl/d in 2010 to 3.0 MMbbl/d in 2040.
It noted that the potential for growth in Libya’s production is high, but the country has been unable to stabilize production amid social and political unrest.
After the 2011 overthrow of the Muammar al-Gaddafi regime, Libya’s crude and lease condensate production returned to pre-revolution levels of about 1.6 MMbbl/d in October 2012. But with ongoing political unrest and mechanical problems, production levels have continued to decline, to less than 0.5 MMbbl/d.
Until a permanent government is in place, it will be difficult to improve conditions sufficiently to attract the foreign investment needed to repair and improve Libya’s production infrastructure. As a result, the country’s prospects for increased production are unlikely to improve substantially for several years.
The report also said that North African OPEC member Algeria has also encountered difficulties in improving its petroleum production.
State-owned Sonatrach was forced to delay its target date to raise crude oil production to 2.0 MMbbl/d by 2010, with actual production at around 1.1 MMbbl/d in 2013.
Exploration investment in Algeria’s oil sector has declined since 2006, as a result of amendments to the country’s hydrocarbon law that were unfavorable to foreign investment. The law was amended again in 2013 in an attempt to attract more foreign investment, but positive results are not anticipated until well into the midterm, and perhaps later.
It however noted that the Middle East OPEC member countries, which accounted for 68 percent of its total crude and lease condensate production in 2010, are projected to increase their crude and lease condensate production by 12.8 MMbbl/d. this will account for 90 percent of the total growth in OPEC crude and lease condensate production from 2010 to 2040.
Saudi Arabia, Iran, and Iraq combined have a large share of the world’s oil reserves and resources that are relatively inexpensive to produce. Saudi Arabia has been the only holder of substantial spare oil production capacity, and played a critical role as the major swing supplier in response to disruptions in other supply sources and economic fluctuations that affect oil demand.
Both Iraq and Iran have the reserves needed to raise their capacity and production well above current levels. This is if they can successfully address some of the internal and external above-ground constraints that have kept their respective oil sectors from realising their potential for more than 30 years.
The report added that there is considerable uncertainty in projecting the extent to which these countries will be able to overcome the difficulties that impede supply growth.
It stated that regardless of the uncertainties in oil supply projections, producers in the OPEC Middle East region are likely to continue playing a key role in balancing global demand and supply. As a result, their output levels may be negatively correlated, with higher realisations of capacity and production in one country reducing the amounts of capacity and production in other countries that are needed to balance global markets.
The remaining Middle East OPEC producers are expected to make smaller, but important, contributions to supply in the future. For example, nearly all of Kuwait’s current reserves and production are in mature fields, but prospects could improve with the success of Project Kuwait.
This is a plan first proposed in 1998 to attract foreign participation and to increase oil production capacity from four northern oil fields: Raudhatain, Sabriya, al-Ratqa, and Abdali.
The four fields were said to contain a mix of heavy and light oil resources. Additionally, it may be possible for Kuwait to boost oil production from the partitioned neutral zone, PNZ that the country shares with Saudi Arabia, which could hold as much as 5 billion barrels of oil.
By Chris Ochayi The Federal Government has said that it will examine and review existing Memorandum of Understanding, MoU, signed with Germany in the power sector with a view to strengthening and making them workable. The Minister of Power, Prof Chinedu Nebo, disclosed this in Abuja last week when he received in audience the newlyRead More →
The National Association of Road Transport Owners, NARTO, has raised alarm over the hijack of their trucks by heavily armed men who escape with them fully loaded with petrol and siphon the fuel and set them ablaze afterwards.Read More →
The dwindling fortunes of marginal fields’ operators in the Nigeria’s oil and gas sector continued, as the subsector contributed 2.41 per cent to Nigeria’s total crude oil production in the month of March 2014.Read More →
The petroleum industry has been identified as a catalyst for employment generation and economic development, especially in the areas of the gas, petroleum refining, petrochemical and fertilizer.Read More →
Nigeria and seven other African oil producing countries could experience boom in the coming years, with Mozambique and Tanzania set to emerge as new frontiers, if they can attract enough investment, a report by PriceWaterhouseCoopers has stated.Read More →
GE has said its U.K.-based distributed power provider, Clarke Energy, is supplying GE’s new diesel engines to Flour Mills of Nigeria Plc, to boost the company’s industrial operations.Read More →
Expectations were high when in 2003 the Department of Petroleum Resources, DPR, awarded the Oil Mining Lease, OML 13, among 23 others as part of the Federal Government’s Marginal Field Programme.Read More →
Lagos State will likely commence oil and gas exploration by next year, following the large deposit of oil found in some parts of the state like Epe, Ibeju-Lekki, and the Badagry axis.Read More →
ABUJA: The National Council on Power, NCoP, has mandated the Ministry of Power to collaborate with relevant agencies to develop a national policy on energy efficiency and conservation.Read More →
Analysts at FBN Capital Limited have bemoaned the negative correlation between Nigeria’s oil output and economic development, saying the oil sector has contributed negatively to the growth of the Nigerian economy.Read More →
By Nkiruka Nnorom The Nigerian Bulk Electricity Trader, NBET, has not demonstrated the readiness to midwife bilateral trading in electricity, said the Chairman, Manufacturers Association of Nigeria, MAN Apapa branch, Mr Babatunde Odunayo. This is even as some private sector companies are already developing the interest and capacity to sell power to the distribution companies,Read More →
The Federal Government has explained that it is prioritising deployment of renewable energy for electricity generation because of its environmental safety advantage.Read More →
ABUJA- THE Minister of Mines and Steel Development, Mr. Musa Sada, has reassured that explosives used by operators in the mining sector are under control and close watch.Read More →
By Chris Ochayi The Chairman of the Cement Company of Northern Nigeria Plc, Alhaji Abdulsamad Rabiu, has decried the high cost of electricity to power production equipment in his factory. Rabiu, who spoke with newsmen on the sideline of the company’s 35th Annual General Meeting, AGM, in Abuja, regretted that despite the high cost, theRead More →