PHCN Workers: N200billion pension fund missing!

Power Holding Company of Nigeria (PHCN) workers allege that N200 billion pension funds is missing and this has stirred a fresh crisis with the planned privatization of the organization by the Federal Government. PHCN workers perceive the privatization issue as a hurried plan by the government to achieve an alleged hidden agenda, following a revelation that PHCN’s total assets worth N1.5trillion were being undervalued at N200billion.

Minister of Power, Professor Barth Nnaji, recently set up an eight-man committee to investigate the status of pension in the power sector, following some issues arising from negotiations with the workers. According to the Minister, “PHCN pensions have not been operated in line with the Pensions Reform Act of 2004, and for some reasons PHCN workers want to follow the scheme which is against the law.” Nnaji explained that the existing scheme was unacceptable to government as it contravened the 2004 Pension Reform Act and insisted that with effect from July 1, 2012, PHCN must operate its pension scheme in line with the 2004 Pension Reform Act.

India Black out: 300 million without power

Grid failure left more than 300 million people without power in New Delhi and much of northern India for hours on Monday July 30, 2012 in the worst blackout for more than a decade, highlighting chronic infrastructure woes holding back Asia's third-largest economy.

Reuters report monitored by Nigeria Energy Intelligence indicate that the lights in Delhi and seven states went out in the early hours, leaving the capital's workers sweltering overnight and then stranded at metro stations in the morning rush hour as trains were cancelled. However, electricity supplies were restored to Delhi and much of Uttar Pradesh, a state with more people than Brazil, by midday (0630 GMT). But the states of Rajasthan, Punjab and Jammu and Kashmir were still without full power in the early evening. 

Power Minister Sushilkumar Shinde said all power would be restored within hours. Power shortages and a creaky road and rail network have weighed heavily on the country's efforts to industrialize. Grappling with the slowest economic growth in nine years, Delhi recently scaled back a target to pump $1 trillion into infrastructure over the next five years.

Major industries have dedicated power plants or large diesel generators. Office blocks, hotels and large apartment buildings also use backup diesel generators.

Oil keeps rising on stimulus outlook, Mideast Unrest

Oil traded near the highest level in a week in New York based on speculation that U.S. and European policy makers will act to boost growth and also on the concern that the unrest in the Middle East may spread and disrupt supplies. The market is riding high on the talk of stimulus and there are also have some geopolitical concerns in the Middle East.

The European Central Bank and the U.S. Federal Reserve are scheduled to discuss the economy separately this week. The Syrian government’s use of “indiscriminate violence” will hasten its collapse, U.S. Defense Secretary Leon Panetta said. The Middle East produces about a third of the world’s crude.

Crude for September delivery was at $90.25 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 3:04 p.m. Singapore time. It earlier advanced as much as 82 cents, or 0.9 percent, to $90.95 a barrel. The contract climbed 0.8 percent to $90.13 on July 27 for a fourth day of gains and the highest close since July 20. Prices are up 6.2 percent this month.

Brent oil for September settlement was at $106.20 a barrel, down 26 cents, on the London-based ICE Futures Europe exchange. The European benchmark crude was at a $15.95 premium to New York-traded West Texas Intermediate grade. The spread was $16.34 on July 27, the widest since May 22.

Oil firms underpaid FG by $2.33bn

Nigeria Extractive Industry Transparency Initiative, NEITI, audit report has revealed that recalculations of royalty for the years 2006-2008 estimated an underpayment of $2.33 billion arising from subjective interpretation of volume, pricing and API (American Petroleum Institute grading variable). The report also said that between 2006 and 2008, the Nigerian National Petroleum Corporation, NNPC, received $3.789 billion as dividends from Nigeria Liquefied Natural Gas, NLNG, which it did not confirm that the payments were made to the Federation account. It further stated that under-assessment of $690 million in Petroleum Profit Tax, PPT, was due to pricing mechanism used (realizable price instead of official selling price) while the discrepancies between annual PPT returns and Annual Financial Statements was responsible for the under-assessment of $424.6 million in the determination of Petroleum Profit Tax, PPT, value. The report said that Operating Expenses, OPEX, indicated a possible under assessment of $364.9 million.

Following the disclosures, NEITI is currently working with the Federal Inland Revenue Service, FIRS, and the Department of Petroleum Resources, DPR, to review the assessments as well as recover these underpayments from companies and remit same to the federation account.

Oil worker drowns during attack in Nigeria delta

A military spokesman in Nigeria according to AP report says a worker for the local subsidiary of Italian oil company Eni SpA drowned while trying to escape an attack in the nation's oil-rich southern delta. Lt. Col. Onyema Nwachuku said  that another worker suffered a gunshot wound to his leg during the attack on July 26, 2012 in the winding creeks of Bayelsa state in the Niger Delta. Nwachuku said "sea robbers" attacked the Eni speedboat carrying workers away from an oil platform in the region.

In a statement, Eni confirmed the attack and said the gunmen stole the boat.