Shell offers to pay N7.5b for Bodo oil spill

Shell Petroleum Development Company (SPDC) and the Bodo Community in Gokana Local Government Area of Rivers State are inching close to a settlement in a compensation case which followed two major oil spills in 2008. About N7.5b has been offered already.

About 15,000 persons from the Bodo community sued SPDC over the development, which occurred in 2008 for which the company had accepted responsibility, although it insisted that the volume spilt and the number of those who lost their livelihood as a result are exaggerated.

Both parties nonetheless commenced talks on compensation but the talks broke down in 2012, following which the villagers filed a suit against the oil company at a London High Court in March 2012, seeking millions of dollars in compensation.

Sources close to the negotiators indicated that Shell has offered N7.5 Billion as compensation to the affected persons and the community. An official of Shell who would not discuss the figure offered however indicated that “SPDC and the Bodo community have both committed their full support to the clean up process currently in progress with the support of Bert Ronhaar, the former Netherlands Ambassador to Nigeria. 

Saudi ready to meet crude demand

Top crude exporter, Saudi Arabia, has said its ready to supply whatever volume of crude is needed to meet demand. This was made known by Saudi Oil Minister Ali al-Naimi.

Saudi Arabia produced record high volumes of crude in August as it boosted output for the second time in two years to cushion the global oil market from supply disruptions. Naimi's comments come after producer group OPEC sought to reassure consumers there is sufficient supply to cover a plunge in Libya's output.

Despite rising Saudi output, benchmark Brent crude prices spiked above $117 a barrel in late August on the virtual shutdown of Libyan oil output and the prospect of U.S. military action against Syria. (O/R)

Brent traded at $111.67 after falling as the threat of a U.S. strike receded, but the market remains volatile on concern diplomatic efforts to avoid military action might fail.

Speculation about international political events is driving oil prices rather than any shortage in supply.

Saudi Arabia pumped a record 10.19 million barrels per day in August. Rising supply from Saudi helped offset losses from other members of the Organization of the Petroleum Exporting Countries. OPEC output in August fell around 124,000 bpd on the month to 30.23 million bpd, but the group said in its monthly report this week that the market was well supplied.

Ex-militant Urges Senate to Stop Probe of OPL 245 Deal

A former militant leader in the Niger Delta, Mr. Ebikabowei Victor Ben, popularly known as General Boyloaf, has urged the Senate to stop its investigation of the Oil Prospecting Licence (OPL) 245 deal and concentrate on the passage of the Petroleum Industry Bill (PIB), which has already abrogated discretionary award of oil blocks. The ex-war lord also decried the rising cases of oil theft and pipeline vandalism and commended the federal government for awarding contracts for pipeline surveillance to leaders of ex-militants and host communities, saying communities where pipelines cut across should be engaged to watch over these assets. In a statement on the state of the nation, the former militant leader also alleged that politicians had hijacked the well-conceived amnesty programme in the Niger Delta for their selfish interest, saying the current programme was not the vision of the programme the ex-militants agreed upon when they surrendered their arms and accepted amnesty for peace and development.

On the controversy over the ownership of OPL 245, he stated that the government of the late General Sani Abacha awarded numerous oil blocks inclusive of OPL 245 and OPL 246 in 1998. “In 2001, the government of President Olusegun Obasanjo revoked Malabu’s right to OPL 245 forcing Malabu to seek justice in court. Of note, other oil blocks, notably OPL 246 awarded by the late General Sani Abacha was not revoked only OPL 245 owned by Malabu was revoked. In 2002, the Obasanjo government re-awarded OPL 245 to Shell after a competitive bidding. But most interestingly, in 2006, realising the grave injustice meted on Malabu, the same Obasanjo government that revoked Malabu’s right to OPL 245 restored its full right of the oil block, thereby correcting the mistake it made in 2001. While the multinational Shell felt aggrieved and sought relief at the courts in foreign lands as multinationals always do, the matter dragged on and was stalemated. It was only in 2011, after about 14 years of acrimonious litigation that the federal government of President Goodluck Jonathan resolved finally and satisfactorily the various ownership claims of OPL 245 between all contending parties,” he explained.

According to him, up till today, the president has the discretionary power to award oil blocks, except the still born petroleum industry bill is passed into law and states otherwise, changes, amends or removes this prerogative powers from the president.

He urged the National Assembly not to reopen an already determined case, adding that between 2002 and 2003, the House of Representatives spent millions of tax payers’ money over a period of 10 months investigating what the Nigerian media sensationalised as the “Malabu Scandal.”

Sliding Libyan oil output, good omen for Nigeria

The fall-out of the Libyan political crisis that nearly crippled the country’s oil production may boost Nigeria’s exports of sweet crude next month. As traders await the October loading schedule, they confirmed that the development had already impacted positively on September exports, which were reportedly completely sold. There were indications that oil production in the North African country may completely halt soon. Libya had confirmed that oil production fell to around 150,000 barrels per day (bpd), from around 250,000 bpd in August. A board member of Libya’s National Oil Corporation, Bilqasim Shindeer el-Shibany confirmed, “oil exports almost entirely have stopped.” To add to the government’s woes, the capital, Tripoli, has been hit with water cuts for three days and electricity outages for the past few months lasting around four hours daily.  Libya’s prime minister faced increasing calls for his ouster, as strikes by government employees at oil export terminals estimated to have cost the North African country more than $5 billion in losses.

  Nigeria’s light oil is apparently bridging the supply-gap in the market, as it exports 63 cargoes of crude oil, totaling 58.2 million barrels or 1.94 million barrels per day (mbpd) for the month of September 2013.  Angola is closely behind Nigeria, as it unveils plans to export 1.70 mbpd of crude in October, an increase of 30,000 bpd from September, according to a loading schedule. Angola will export 52.8 million barrels on 55 tankers three more than were scheduled to load in September.

China impounds passports of oil managers

Executives of Chinese oil giant PetroChina Ltd. have been told to hand in their passports as an anti-corruption investigation of the industry spreads. Authorities say five current or former executives of state-owned PetroChina and its parent, China National Petroleum Corp. are suspected of "discipline violations," a term usually used to refer to corruption.

PetroChina managers at the level of division chiefs and above were ordered to hand in their passports. Such a move often is intended to prevent potential suspects or witnesses from fleeing while investigators gather information.

Political analysts say the investigation appears to be part of efforts by China's new leadership under President Xi Jinping to tighten control over state-owned energy companies.

PetroChina's former chairman, Jiang Jiemin, has been fired as head of the Cabinet body that oversees China's biggest state-owned companies, the State-owned Assets Supervision and Administration Commission.The commission's Communist Party secretary, Zhang Yi, visited rank-and-file PetroChina employees at two oilfields in China's northeast to affirm the ruling party's faith in their work. 

PetroChina, with some 550,000 employees, is Asia's biggest oil producer by volume and the world's second-most-valuable energy company by market capitalization, behind Exxon Mobil Corp. 

IOCs still flare 80% gas in Nigeria

The Federal Government has declared that International Oil Companies (IOCs) operating in Nigeria’s multi-billion dollars oil and gas industry, still flare 80 per cent of gas. Minister of Petroleum Resources, Diezani Alison-Madueke, who said this, however, maintained that the series of gas projects including the oncoming petrochemical and fertiliser plants would take up a bulk of the gas currently flared thereby reducing gas flare and the harm it does to the environment.

A statement issued by the Nigerian National Petroleum Corporation quoted the minister to have said this while speaking at a plenary session of the 19th Nigerian Economic Summit titled, “Building a World Class Petrochemical and Fertiliser Industry in Nigeria.”

Gas flare, she said, has been reduced considerably over the past two years to 20 per cent.

Five proposed fertiliser plants, which include the Dangote Petrochemical and Fertiliser Plant to be built at Olokola, Indorama Fertiliser Plant at Eleme, Brass Fertiliser Company at Brass, Nagarjuna Fertiliser Plant at Ogidigben, and another plant by the International Fertiliser Association, are billed to come on stream by 2017.

DPR realises N470bn in Q1 2013

The Department of Petroleum Resources, DPR said it generated over N470 billion in revenue in the first half, thereby surpassing its projected targets by over N86 billion. This was revealed during a recent interface between the DPR and the House Committee on Upstream Petroleum, when the later visited the industry regulator, as part of its oversight functions. The Committee led by its Chairman, Honourable Muraina Ajibola, commended the effort of the Department in its exceptional performance over the preceding six months, by surpassing its revenue target for the period. According to Ajibola, DPR’s expected revenue target for the period, January to June 2013 was estimated at N383billion, but instead realized about N470billion.

DPR Director, Mr. George Osahon, who led the management team, was called upon to initiate practical steps that would boost internally generated revenue to robust levels, and promised full legislative backing in support of such initiatives.

The Department of Petroleum Resources, DPR said it generated over N470 billion in revenue in the first half, thereby surpassing its projected targets by over N86 billion.
This was revealed during a recent interface between the DPR and the House Committee on Upstream Petroleum, when the later visited the industry regulator, as part of its oversight functions.
The Committee led by its Chairman, Honourable Muraina Ajibola, commended the effort of the Department in its exceptional performance over the preceding six months, by surpassing its revenue target for the period.
According to Ajibola, DPR’s expected revenue target for the period, January to June 2013 was estimated at N383billion, but instead realized about N470billion.
DPR Director, Mr. George Osahon, who led the management team, was called upon to initiate practical steps that would boost internally generated revenue to robust levels, and promised full legislative backing in support of such initiatives.
Also, the Legislators expressed deep concern in the seemingly unabated spate of oil theft, particularly in the Niger Delta, and urged the Federal Government to implement the House’s resolutions on the issue.
Ajibola recalled some of the recommendations to include, government to assign dedicated telephone lines to security agencies. Such lines should also be made available to the public in order to facilitate easy reporting of these incidents to the appropriate security outlets.
Other recommendations include proper manning of crude export terminals and the installation of electronic metering at well heads to assist stem this negative tide.
- See more at: http://www.vanguardngr.com/2013/09/dpr-realises-n470bn-in-q1-2013/#sthash.TltQnxrJ.dpuf

The Department of Petroleum Resources, DPR said it generated over N470 billion in revenue in the first half, thereby surpassing its projected targets by over N86 billion.
This was revealed during a recent interface between the DPR and the House Committee on Upstream Petroleum, when the later visited the industry regulator, as part of its oversight functions.
The Committee led by its Chairman, Honourable Muraina Ajibola, commended the effort of the Department in its exceptional performance over the preceding six months, by surpassing its revenue target for the period.
According to Ajibola, DPR’s expected revenue target for the period, January to June 2013 was estimated at N383billion, but instead realized about N470billion.
DPR Director, Mr. George Osahon, who led the management team, was called upon to initiate practical steps that would boost internally generated revenue to robust levels, and promised full legislative backing in support of such initiatives.
Also, the Legislators expressed deep concern in the seemingly unabated spate of oil theft, particularly in the Niger Delta, and urged the Federal Government to implement the House’s resolutions on the issue.
Ajibola recalled some of the recommendations to include, government to assign dedicated telephone lines to security agencies. Such lines should also be made available to the public in order to facilitate easy reporting of these incidents to the appropriate security outlets.
Other recommendations include proper manning of crude export terminals and the installation of electronic metering at well heads to assist stem this negative tide.
- See more at: http://www.vanguardngr.com/2013/09/dpr-realises-n470bn-in-q1-2013/#sthash.TltQnxrJ.dpuf

Kenya offers 46 oil blocks to Nigerian investors

Kenyan authority has reportedly offered its 46 newly-discovered oil blocks to interested Nigerians to prospect for the development of the sector. Nigeria’s Minister of Petroleum Resources, Diezani Alison-Madueke, disclosed to reporters that the offer of the oil wells was parts of the outcome of the dialogue group preceding the Nigeria-Kenya Investment Forum held in Nairobi, the capital of Kenya. Alison-Madueke was on the entourage of President Goodluck Jonathan who concluded a three-day state visit to Kenya on Saturday with host President, Uhuru Kenyatta, presiding over the Forum. The Forum, held at the Intercontinental Hotel, Nairobi, had in attendance more than 500 prominent investors from both countries. The minister said that beyond giving the opportunity to Nigerian investors to acquire the oil wells, Kenya also sought Nigeria’s assistance in the formulation of the right policies and frame-work to manage the sector.

  “It is well known now that Kenya had recently discovered hydro-carbon reserves and they are very keen to move quite aggressively in terms of exploration activities.

  “They felt that as sister African country, Nigeria having many years of oil exploration and production, it only makes sense that we exchange agreement in co-operation to hand over knowledge, capabilities and experience learnt. 

  “They seek various templates that we have formulated, including policies, processes and a sort of templates that form Petroleum Industry Bill (PIB), among others.

“We also looked at areas surrounding Nigeria’s investment possibilities where we think that Nigerian business men and women could come into the oil and gas sector in Kenya.

  “They are very keen that Nigerian operators in the upstream, midstream and downstream service sectors of the oil and gas industry look to Kenya as a burgeoning frontier for investments in the oil and gas sector.

  “They are also very keen that we robustly support them in setting up the right frame-work, policies and processes and technology to help them drive the exploration activities,” she said.

  The minister said that among the seven MoUs and bilateral agreements signed by both countries was that on oil and gas, which spelt out details of the co-operation.

  Kenya recently announced that its oil resources met the threshold for commercial exploitation, raising the country’s hope of joining the league of oil producing nations.