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.

 

Shell to negotiate with Nigerians over oil spill compensation

Compensation talks will begin in Nigeria between lawyers for Royal Dutch Shell and for 15,000 Nigerian villagers who say their livelihoods were destroyed by oil spills from pipelines operated by the company. The Nigerians launched a suit against Shell at the High Court in London in March 2012, seeking millions of dollars in compensation for two oil spills in 2008 that polluted the waterways of the Bodo fishing communities in the Niger Delta. The legal action is being closely watched by the industry and by environmentalists for precedents that could have an impact on other big pollution claims against oil majors.

A vast maze of mangrove swamps and creeks, the Niger Delta is home to communities of subsistence farmers and fishermen living alongside the multi-billion-dollar oil industry.

A Shell spokesman confirmed that talks would begin on Monday September 9, 2013 between Leigh Day and lawyers for the Anglo-Dutch firm. They will take place in Port Harcourt, the main city in the Delta, and will be attended by representatives of the Bodo communities. The region has been plagued by a range of problems including sabotage, kidnappings of oil workers for ransom, theft of crude from pipelines, armed rebellions, and conflict between communities over clean-up contracts or compensation deals.

Shell accepts responsibility for the Bodo spills but the two sides disagree about the volume spilt and the number of local people who lost their livelihoods as a result. A previous round of compensation talks broke down in 2012, before the lawsuit.

Nigeria warns oil block buyers could lose operating rights

Nigeria's state oil company warned investors interested in three shallow water oil blocks offered for sale by Chevron that buyers may lose the right to operate them. U.S.-based Chevron is selling minority stakes in joint ventures that operate five oil blocks. The majority owner is the Nigeria National Petroleum Corporation (NNPC). Nigeria wants more direct ownership of its oil and gas through NNPC or local firms, leading several oil majors including Chevron to dispose of assets in Africa's top oil and gas producer. NNPC published a notice in local newspapers saying that there had been a "recent high level of interest shown by various investors in the ongoing divestment program for OMLs 52, 53 and 55 by Chevron Nigeria". It reminded those considering investing that, although Chevron currently operates the blocks, the state oil firm has the right to take over the operatorship as majority shareholder. Chevron owns 40 percent of the blocks and NNPC 60 percent. "Chevron shall cease to be the operator upon assignment of their participating interest," it said. "Therefore prospective buyers should note that automatic operatorship does not come with the acquisition of any of these blocks." Not having operatorship poses significant risks for would be investors in the fields, not least that the NNPC's development subsidiary, NPDC, lacks the finance and expertise. It has usually had to call in a third-party operator anyway. The notice seemed calculated to avoid messy tussles that ensued when Shell sold some oil blocks two years ago.

Dangote plans Nigeria's largest oil refinery

Dangote Group has received a loan toward a $9 billion project that will give Nigeria its largest oil refinery and petrochemical and fertilizer complex, reducing the country's reliance on international markets. Aliko Dangote, president of Dangote Group, signed a loan worth $3.3 billion from 12 Nigerian and international banks toward the project which will be built in Nigeria's southwest.

"At the completion of these projects we expect Nigeria to become not only self-sufficient in fertilizer and refined petroleum products but indeed to become recognized as a leading exporter of these products," Dangote said at the signing.

Nigeria is Africa's biggest oil producer, and is a top supplier of crude to the U.S., but the West African country has to import most of its fuel because of decrepit refineries unable to meet the nation's demand for gasoline due to years of mismanagement and sabotage.

The 400,000 barrels-per-day oil refinery and complex will become operational by 2016, the company said. The plant will also produce 2.8 million tons of urea for fertilizing crops and to produce polypropylene, used to make plastics, a statement said.

Dangote said the company is still seeking an additional $2.5 billion in development funds to augment the $3.5 billion of its own equity put into the project. The $3.3 billion loan deal was led by Standard Chartered and Nigeria's Guaranty Trust Bank.

Dangote's estimated worth is $16.1 billion according to Forbes, which has also ranked him among Africa's richest men for the past few years. The Nigerian has made his wealth in cement, flour and sugar.