Oil and Gas

Nigeria loses billions of dollars to error in gas flaring law

...Government is approaching lawmakers to amend energy law
Africa’s top oil producer plans to make gas flaring more costly for companies that have escaped the payment of billions of dollars despite being fined, Minister of Finance, Kemi Adeosun has said.
In the “legal framework for the gas-flaring penalty, it was drafted as a charge. A charge is tax deductible,” Adeosun said in a Jan. 23 interview. “So, what do the international oil companies do? They flare, they pay the charge on which they get tax relief. That’s just bad drafting.”

$16bn Egina probe: NASS to amend Local Content Act

The Senate has said it will amend the Nigeria Oil and Gas Industry Content Development, NOGICD Act, 2010, noting that the existing law was not achieving the aims for which it was enacted.
This decision was reached by the Senate Ad-Hoc Committee currently investigating local content and cost variation for the $16 billion Egina Deep Sea oil project. The committee is led by Senator Solomon Olamilekan Adeola (APC, Lagos).

Kaduna Refinery shut down for lack of crude

The Kaduna Refining and Petrochemical Company (KRPC) has shut down operations due to the non-availability of crude oil. The Executive Director (Services) of KRPC, Dr. Abdullahi Idris, disclosed this to the News Agency of Nigeria (NAN) in Kaduna.
He said the refinery, whose fuel plant was commissioned in 1980, was functioning at 60 per cent capacity, “but had to be shut down on January 15 due to unavailability of crude oil.” 

Fuel diversion: NNPC commends NSCDC for intercepting 469,000 litres of petrol

The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, has commended the Niger State Command of the Nigerian Security and Civil Defence Corps (NSCDC) on the eight trucks its men apprehended in Mokwa, Niger State last week.

The trucks had a combined capacity of 469,000 litres and were set on cross-border diversion to the Republic of Benin through Babana, a boarder town of about 700 kilometres from Minna.

Oil soars to $71/barrel for first time since 2014

Brent oil prices hit $71 per barrel on Thursday, January 25, for the first time since 2014 as the dollar continued to weaken and crude inventories in the United States fell for a 10th straight week amid ongoing supply cutbacks by OPEC and top producer Russia.
Brent crude futures, the international benchmark for oil prices, hit a session high of $71.05 per barrel – the highest since early December 2014 – before dipping back to $70.99 by 0440 GMT. That was still up 46 cents, or 0.7 percent from the last close.

Fuel Scarcity: Senate reads riot act to NNPC, DPR others

Against the backdrop of the lingering fuel crises across the country, the Nigerian Senate on Thursday read the riot act to the Nigerian National Petroleum Corporation (NNPC), the Department of Petroleum Resources (DPR) and security agencies to ensure adequate supply of Premium Motor Spirit (PMS) also known as petrol and the disappearance of queues nationwide within seven days.

The resolution of the Senate in Thursday’s plenary stemmed from the recurring incidents of fuel scarcity that have threatened to cripple business activities and destabilise the polity.

NPDC targets 500,000bpd crude oil production

The Nigerian Petroleum Development Company (NPDC), one of the upstream subsidiaries of the Nigerian National Petroleum Corporation (NNPC), will increase its daily crude oil production to 500,000 barrels per day before 2022.
This target was announced by the Group Managing Director of the NNPC, Dr. Maikanti Baru, during the inauguration of the board of directors of the company in Abuja.