Nigerian PIB and declining oil revenue

By Dele Sobowale

“Every great enterprise starts off with enthusiasm for an exalted aim and ends up bugged down in petty politics.” Charles Peguy, 1873-1914.
(VANGUARD BOOK OF QUOTATIONS p 49).

Can you remember when the idea of  privatizing NEPA, NITEL, NNPC, NPA was first eagerly promoted? Well, don’t worry. People like me are here to remind you. It was in the 1980s when the Technical Committee on Privatisation and Commercialisation, TCPC, headed by late Dr Zyyadd was established. For four years, after the proclamation, nothing happened to our biggest public enterprises – despite all the valid reasons advanced for getting governments to relinquish their strangle-holds on businesses which are best left to the private sector.

Then in 1992, when Chief Ernest Shonekan was lured ro resign his appointment as the Chairman/Managing Director of the UAC of Nigeria, Plc, to assume the position of civilian Head of Government under military President Babangida, he quickly orgainsed the first National Economic Summit, NES, whose main recommendation was the need to urgently privatize the nation’s largest parastatals.

That meant that four years, after the initial enthusiasm for privatization, the enterprises were still in public hands. Today, 2014, twenty six years after the idea of privatizing our giant parastatals, only NEPA had been successfully privatized. NITEL and NNPC had remained drain pipes for corrupt public officials. With NITEL we missed a golden chance when the GSM arrived in Nigeria. Typical Nigerian Factor ensured that NITEL was not sold when it could have made good money for Nigeria.

Now, most of the infrastructure has become obsolete and can only be regarded as scrap for which we must pay to get removed. And few people even remember they own a land line anymore. That leaves us with both NITEL and NNPC – which also might be going the way of NITEL. An enterprise which could have been turned over to the private sector, years ago, and, at a good price, might have to be given away very soon – lock, stock and barrel.

The imminent failure of NNPC is inextricably intertwined with the failure to get an agreed PIB signed since the first one was presented in 2010 to the National Assembly. PIB 2, which is about to suffer the same fate as PIB 1, will probably be the last attempt aimed at privatizing NNPC and getting value for money. Events rapidly shaping the future of oil, globally, point increasingly to a world which is becoming less dependent on Nigerian crude oil. With declining crude oil exports, Nigeria’s ability to pay for refined petroleum products will also be reduced and the value of our ageing refineries will head to the basement.

Most knowledgeable people in government, and the National Assembly, as well as the government of oil producing states are aware of this. But, the enthusiasm to do the hard work required to get PIB passed had waned considerably. Instead, politicians, especially those seeking elective office, next year, have collectively directed their attention towards the 2015 elections. PIB 2 is effectively dead and it will become history on May 29, 2015. The question is: will it be followed by PIB 3? The answer is: May be.

Even if Jonathan secures a second term, he will have to present another or the same bill to a different National Assembly. It will be back to step one once again. Furthermore, the most urgent matter on the NASS agenda will not be consideration of a very complex bill. Sorting out the leadership structure of the NASS and establishing power positions will come first. This will be followed by self-interest issues regarding official and unofficial remuneration for the new holders of legislative power. Jonathan will also be concerned about leaving a legacy starting with the selection of a cabinet which will make it possible for him to achieve whatever he assigns to himself as his main objective. And there is no guarantee that the next NASS will be populated by people ready to support the President.

There will certainly be no PIB 3 if a Northerner succeeds Jonathan next year. That possibility constitutes the heart of the tragedy which will befall the oil producing states, which stand to benefit most if PIB 2 is miraculously passed this year. With each passing day, the window of opportunity closes more than before.

Already, the signs of trouble are evident in the creeks and in the deep water blocs. Several oil rigs have shut down production on account of theft, piracy and kidnapping of indispensable foreign technical workers. As other countries, all over the world, open their oil blocs for production, or expand the areas of operations, experienced rig operators are picking up stake in search of safer work places. Most will not return, once they leave, and replacements might be difficult to recruit – as long as there is work elsewhere.

The relentless crude oil export decline, which has already savaged the budgets of Federal, States and Local Governments in 2014, will increase the economic hardship being experienced now and might reduce GDP growth next year. Even at the projected 5.8% for 2014, few new jobs have been generated relative to the volume of job seekers turned out by our schools annually. Slower growth will certainly exacerbate the intractable situation with respect to mass unemployment – particularly among the youths.

The most astonishing thing about PIB 2 is the total lack of interest in it by the oil producing states and their governments. If PIB 2 fails this year, the people of the Niger Delta will have the present Governors, Ministers, legislators at both the Federal and State levels to blame for the tragedy that will befall Nigeria in general and the oil producing states in particular.

Visit: www.delesobowale.com or Visit: www.facebook.com/biolasobowale

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Okubor seeks end to feud between oil and gas stakeholders

feud between oil and gas stakeholders

THE Chief of Staff, Government House, Asaba, Dr. Festus Okubor, has proposed the concept of Host Communities of Nigeria Producing Oil and Gas, Hostcom partnership as panacea to end the feud between government, oil companies and host communities where oil and gas are explored.

He gave the advice when executive members of Hostcom, Delta State chapter visited him at his Boji-Boji, Owa, Agbor home to thank him for the supportive role he played in building bridge between them, oil companies and the Delta State Government.

Okubor said that the time has come for these bodies to establish a relationship that will help achieve sustainable development of the oil industry and improve the peoples’ economic base.

He said,“I believe that the concept of hosting partners must be explored for lasting peace for the benefit of all stakeholders in our state and the oil industry. This concept envisages that the oil companies, the government and the communities where the economic activities are taking place must readjust their mindsets, and begin to see themselves as partners in the same business. Government must see itself as a partner in the business because it is from that business that it gets its funds to fund services for her people.

The oil companies must see themselves as partners because it is from the activities in our state that they make their profits for their shareholders and their workers. The communities must therefore, necessarily see themselves as partners. Partners that will benefit from the profits of the business, partners who, because of the benefits they will get from the profits of the business will see the need for them to protect the business.”

Earlier, Chairman of the state Hostcom, Dr. Peter Egedegbe, said he and his colleagues came to Okubor to show appreciation for his tenacity of purpose to the oil and gas producing communities of Nigeria, Delta State chapter. He said, “You have demonstrated your dexterity to support the course of the Hostcom which happened to be the life wire of the growth of the economy of the state and, indeed our country, Nigeria. We have no doubt that when people like you are in power, you will contribute meaningfully to the upliftment of the oil and gas producing communities whose issues should be placed on the priority list of the state.”

- See more at: http://www.vanguardngr.com/2014/09/okubor-seeks-end-feud-oil-gas-stakeholders/#sthash.NLjmm3rP.dpuf

Community alleges gradual extinction by oil coy’s activities

extinction by oil coy’s

By Egufe Yafugborhi

WARRI — COASTAL Polobubou (Tsekelewu) people of Warri North Local Government Area, Delta State have appealed to the Federal and state governments to save their community from extinction, arising from devastating oil and gas activities of multi-naionals.

In a Save Our Soul, SOS,  by the Polobubou National Council, PNC, Chairman, Chief Ebilate Mac-Yororki to the Governor Emmanuel Uduaghan, the communities accused Chevron Nigeria Limited and the Nigeria Petroleum Development Company, NPDC, of  allegedly killing the aquatic lives and vegetations, which, they said they depend on for survival.

He said: “The communities original fresh water swamp with different types of economic trees for lumbering, canoe carving, boat building and other purposes are now left with only Atlantic Ocean grasses due to oil activities and opening up of the communities to the  Atlantic Ocean, and saline water , turning it to a mangrove swamp.

“Currently, there are no trees, rivers and creeks due to the continual siltation of the environment. The peak of the dry season (January to March), no engine-powered craft can ply the water-ways. The opening of the communities to the Atlantic Ocean by Chevron in the 70′s was vehemently opposed by the indigenes, which led to the arrest and detention of our people, until the canalisation was completed.”

- See more at: http://www.vanguardngr.com/2014/08/community-alleges-gradual-extinction-oil-coys-activities/#sthash.oGfTQrQS.dpuf

Nigeria Oil theft - No oil minister or Presidential aide linked with Tenebe probe – EFCC

Nigeria Oil theft 

By Soni Daniel

The Economic and Financial Crimes Commission, EFCC, yesterday, made spirited efforts to clear its name of allegation that it was under pressure to free a crude oil theft suspect because of the personalities named by him.

An online medium, had alleged on Thursday that a People’s Democratic Party governorship candidate, Jarret Tenebe, who was arrested for oil theft had implicated top government officials, among them, a former Chief of Staff to President Jonathan and a serving female minister.

But the commission in a statement in Abuja yesterday, denied that it was being teleguided by any group or individual to shield the suspect from investigation and prosecution.

The Head of Media and Public Affairs of the commission, Mr. Wilson Uwujaren, admitted that though the suspect was under investigation for oil theft, there was no evidence that he was being promoted by the top officials named by the online medium.

The commission said, “The attention of the Economic and Financial Crimes Commission, EFCC, has been drawn to a report entitled, Crude Oil Theft: PDP Governorship Candidate Jarret Tenebe Arrested, Implicates Jonathan’s former Chief of Staff, Anenih and Petroleum Minister, which appeared on Saharareporters, an online news service, on Thursday, September 11, 2014.

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Finance Ministry Pays Oil Marketers 24.7billion

Finance Ministry Pays Oil Marketers 24.7billion

By Chineme Okafor  

The Ministry of Finance has  released list of oil marketers whose subsidy claims had been paid by the federal government. This was disclosed in a newspaper advertorial that it paid N24.7 billion to oil marketers whose claims had successfully gone through the verification processes from the Petroleum Product Pricing and Regulatory Agency (PPPRA).

The publication indicated that companies such as , Conoil, Folawiyo Energy, Forte Oil, Oando Plc, Acorn Petroleum, Aiteo Energy Resources and Techno Oil, Bulk Strategic Reserve,
Cybernetics International Services, Dee Jones Petroleum and Gas, Oando Plc, Rahamaniyya Oil and Gas, and TSL Logistics claimed the highest in volume of allocation

Also on the recent list are Blacklight Energy, Bovas and Company and Hayden, all of which have significant supply of volumes.

In the Batch U/13 Sovereign Debt Statement (SDS) issued to 10 oil marketers by PPPRA, Aiteo claimed N2,193,200,999.52; Bulk Strategic Reserve-N905,279,509.42; Conoil Plc-N2,086,584,633.88; Cybernetics International Services-N422,086,579.35; Dee Jones Petroleum and Gas-939,424,518.95; Forte Oil- N2,807,874,290.98; Oando Plc-N1,682,448,410.28; Rahamaniyya Oil and Gas-N623,798,739.72; Techno Oil-N1,712,205,580.56 and TSL Logistics-N942,461,809.71.

Batch B/14 SDS which was issued to seven oil marketers had Aiteo with N3,276,185,458.16; Acorn Petroleum-N1,065,524,432.58; Blacklight Energy-N967,425,330.90; Bovas and Company-N964,625,043.28; Conoil-N1,792,724,448.24; Folawiyo Energy-N1,821,473,866.00; and Heyden-N519,631,559.75.

Collectively, they make significant contributions in the volume of petrol imported and supplied in the country, in addition to the quantity imported and refined by the Nigerian National Petroleum Corporation (NNPC).

Following the government review of its subsidy administration in the Petroleum Support Fund (PSF) which in addition to cutting down the number of marketers that import petrol into the country, now requires strict adherence to PPPRA’s truck-out policy, payments of subsidy claims to marketers by the ministry were now made to go through forensic processes that were aimed at plugging sources of leakages.

The ministry notes that it is part of a transparent management of the subsidy scheme which suffered some integrity trial that lead to a nationwide uproar following government’s attempts at discontinuing with it in January 2011; it consistently adds that legitimate petroleum marketer with import approvals must endeavour to legally earn their pay.

The PPPRA has also steadily cut down the number of marketers it engage in the regime, the agency had in its third quarter import allocation, cut down the numbers to 27 from 40 in the previous quarter.

The third quarter allocation also excluded some top downstream players such as MRS which was listed in the second quarter while Mobil Nigeria Plc and Aiteo were listed as winners with larger import volumes.

But despite the stringent conditions from the government, these indigenous marketers still find it feasible to stay above the waters, thus showing that the scheme can transparently work for the country and legitimate downstream players.

How foreign investor in Nigeria lost $7.99m through oil scam

Nigeria oil scam

By Ifeanyi Okolie

LAGOS — The Economic and Financial Crimes Commission, EFCC, yesterday said it arrested two suspected fraudsters who allegedly defrauded a foreign investor of $7.99 million through a non-existent oil deal .

Spokesman for the commission, Wilson Uwujaren, who gave the identities of the suspects as Victor Uwadiale and Captain Nnaji Everest, said they were arrested separately by the operatives in Festac area and another part of the state.

Uwujaren described Uadiale as the principal suspect and arrow head of an international syndicate, which specialised  in defrauding international businessmen seeking investment opportunities in Nigeria.

Uwujaren further said: “Uwadiale allegedly invited the investor, a businessman from somewhere in the Middle East, to invest in the flourishing oil sector in Nigeria.

“Using a pseudo name, Victor Emeka, he made the investor to visit Nigeria and received him at the Nnamdi Azikwe International Airport, Abuja and thereafter flew him in a helicopter to a destination where he reportedly met a certain Mr. Grant, a member of the syndicate, who assured him of the credibility of the business arrangement.

“Convinced that Uwadiale was real and the business promising, the investor started paying money in foreign currency into Uadiale’s offshore accounts where it was laundered into various bank accounts around the globe.

“A sum of $ 1.292 million was traced to a Barclay’s Bank in the United Kingdom, account belonging to Captain Nnaji Everest, a member of Uadiale’s syndicate.

“The sum of N1. 6 million, N1.2 million, £894.79 and $275.30 were traced to Uwadiale’s accounts with one of the new generation banks in Nigeria and another £391.93 to another local bank.”

Uwujaren added also that during investigation, Uwadiale denied meeting or transacting any business with the foreign investor. He was, however, nailed by a business associate of the investor who identified him as the fraudster and led operatives of the EFCC to the private residence of Uwadiale in Festac Town, Lagos.

Both Uwadiale and Everest will soon be charged to court.

- See more at: http://www.vanguardngr.com/2014/09/foreign-investor-lost-7-99m-oil-scam/#sthash.Gu05GjWJ.dpuf

Bayelsa shuts Agip facility over oil spill

By Samuel Oyadongha

Yenagoa—The Bayelsa State Government, yesterday, ordered Nigerian Agip Oil Company, NAOC, to temporarily shut down its facility in Ayamabele and Kalaba communities in Orkordia clan of Yenagoa Local Government Area of the state over rising cases of oil spills in the area.

It also announced the setting up of a rapid response team to handle spills related cases in the communities.

According to the state Commissioner for Environment, Mr. Iniuro Wills, the decision was to allow a special investigative team to tackle spills in the state.

Wills said: “The grave consequences spillage portends for the people and communities have necessitated the setting up of the team. Following the recent gas spillage, which occurred on September 4, at a facility operated by NAOC in the two communities, the ministry has asked the company to temporarily shut down operations in the facility.”

Meanwhile, the state government has announced that a meeting between the leadership of the impacted communities, the officials of the state government and NAOC has been called to discuss the incidence of spillage with a view to improving environmental standards in the state.

He said: “The Environment Ministry is determined to use the recent Ayamabele and Kalaba gas spill to signal the start of the state government’s programme of rapid and sustained environmental protection and enforcement.”

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Drillers Can Return to Fight Oil Slump After Scotland’s ‘No’

U.K. oil companies can stop fretting about Scottish independence and go back to combating a slump in output that’s the steepest of any major producer.

Royal Dutch Shell Plc (RDSA)Chief Executive Officer Ben van Beurden and BP Plc (BP/) head Bob Dudley were among those who said before yesterday’s referendum that keeping Britain’s 307-year union was good for the oil industry. Both companies led development of the North Sea in its production heyday during the 1970s and ’80s, when the Scottish National Party first cried the slogan “It’s our oil!”

Output has long since peaked and production collapsed 74 percent from a high in 1999, according to energy analysts atRaymond James. After the vote, the U.K. government will work with oil companies on incentives to invest in mature fields and make it worthwhile to produce from more marginal deposits.

“Shell welcomes the decision by the people of Scotland to remain within the U.K., which reduces the operating uncertainty for businesses based in Scotland,” van Beurden said today in an e-mailed statement. “Shell will continue to work closely with both the U.K. and Scottish governments to help the industry deliver vital energy supplies through investment in the U.K.’s oil and gas resources.”

Referendum Campaign

The Scottish government, claiming almost all the North Sea’s oil under independence, used the referendum campaign to accuse the U.K. of failing to provide stable and predictable stewardship of the resources.

On the flip-side, the U.K. government said the Edinburgh administration relied on optimistic estimates of tax revenue from oil and would have to give up the stability of the pound.

Open questions over Scotland’s use of the British currency and tough negotiations with the U.K. would have risked stalling investment in the North Sea needed to sustain output from the maturing oilfields, Ian Wood, author of a report into the future of the industry cited by both sides of the independence debate, said in an interview before yesterday’s vote.

Shares of oil companies and service providers rose.

Amec Plc climbed 1.7 percent to 1,095 pence at the close in London trading. Enquest Plc, an operator active in the North Sea, gained 0.5 percent to 110.90 pence. BP advanced 0.4 percent to 473.30 pence. Shell closed 0.2 percent higher at 2,407.50 pence.

Industry Relief

“The industry will give a big sigh of relief as companies are able to move forward with contract obligations with certainty,” Alastair Young, a partner at Bracewell & Giuliani who has worked on energy for a decade and acted for producers from Sinopec to Apache Corp. (APA), said in an interview. “They’ll feel comfortable with development of assets and M&A deals.”

That will be essential if operators are to extract the greatest possible value from the fields. While the equivalent of 10 billion barrels of oil are already included in development plans, 40 percent of that has yet to secure investment, Oil & Gas UK said in its Activity Survey for this year. The right conditions for investment in exploration, appraisal and development are crucial, it said in the report.

“Oil & Gas UK looks forward to continuing working closely with both the U.K. and Scottish governments towards the shared ambition of maximizing economic recovery of the U.K.’s offshore oil and gas resource,” the industry group said today. “To safeguard the industry’s future, it is particularly important that the government now presses swiftly ahead with fiscal reform.”

Budget Forecast

The Office of Budget Responsibility, an independent body set up to report on public finances,forecast U.K. oil and gas receipts falling to 3.5 billion pounds by 2018-19 from 4.7 billion pounds in 2013-14. While the OBR is more pessimistic than some, actual money raised has often come in below its figures. All six of its budget forecasts that included outlooks for 2013-14 were higher than the outcome.

“Oil and gas has been a fantastic opportunity for the U.K.,” said Wood, who estimates there may be 15 billion to 16.5 billion barrels of oil and gas yet to be recovered. “It’s still got a long way to go but we are up against it. We are now quite mature.”

One uncertainty remaining lies in the promises made by U.K. political leaders over transferring more control, including tax raising powers, to the Scottish government to win over voters.

“We would expect the SNP-led Scottish government to begin to focus on gaining further devolutionary powers,” Investec Plc analysts wrote in a note to investors this month.

Killings in the name of oil

Kogi assailants launched surprise attack – Aguleri

‘Anambra people are the aggressors’

By Vincent Ujumadu, Awka & Boluwaji Obahopo, Lokoja

ON August 30, 2012, President Goodluck Jonathan inaugurated the first oil refinery at Aguleri –Otu in Anambra State, thus raising the hope that the state would soon join the elite club of oil –producing states. However, barely 24 hours after the epoch –making ceremony, some communities in Kogi State started laying claim to the oil wells serving the Orient Petroleum Refinery in Anambra.

Though Jonathan declared Anambra as an oil producing state the day he inaugurated the facility, the state is yet to be formally admitted as a member of oil –producing states.

While the situation hangs, a statement credited to Governor Idris Wada indicated that Kogi State would do everything humanly possible to reclaim the oil wells.  The statement was followed by attacks in the area such that hundreds of people have lost their lives and property worth millions of naira destroyed as the border communities in Anambra and Kogi states battle for the land that bears the crude oil.

The latest attack was carried out on Monday during which four persons from Aguleri were reportedly killed and seven others seriously injured. Two persons were said to have died on the Kogi side. The injured ones on the side of Anambra were sent to a private hospital in Onitsha, but after visiting them in the hospital, Governor Willie Obiano directed that they be transferred to St. Charles Borromew Specialist Hospital, also in Onitsha, for adequate treatment. He promised that  government would settle their medical bills.

When Sunday Vanguard visited the hospital, some of the injured victims were receiving blood transfusion following enormous loss of blood from bullet wounds during the attack. Their relations, including women and youths, besieged the hospital sobbing and cursing those who perpetrated the act.

One of the victims who managed to speak said: “We were working in our farms and some were fishing in their ponds when suddenly we saw a large number of people with guns running in our direction. We thought they were soldiers guarding Orient Petroleum because of the sophisticated nature of their weapons, or the policemen manning the buffer zone created in the area which we had always avoided, even though the buffer zone is our land.

“The next thing we saw was that they started firing at us and we all started running. Some fell down when they were hit by bullets and others continued to run even with bullet wounds. They captured many of our people and took them away and those ones are still missing.

“This is what we have been experiencing since Orient Petroleum Refinery was commissioned and what surprises us is that our people have been farming and fishing there for many years without disturbance from our neighbours in Odeke and other communities in Ibaji local government area of Kogi State because they know that  the land belongs to us.

“Since they started attacking us, we decided to be going to farm in groups and we usually flee anytime we got information that they were coming to attack us. This last attack was as if somebody informed them that we were in the farm because it started barely two hours after we arrived and were busy working.

“Apart from chasing us with guns, they have been setting our farms ablaze and destroying our crops, but we have resisted the temptation to retaliate because that is what they want. Besides, there was no way we could have retaliated since we were not armed.”

A relation of one of the victims, who simply called himself Iveka, regretted that the latest incident took place in the presence of security operatives guarding the buffer zone created by the National Boundary Commission to forestall clashes between the warring communities.

He said: “Our people suspect that one of the mobile policemen guarding the buffer zone informed Kogi people that we were at the disputed area. We are beginning to believe that some of the security, agents are spying for Kogi people, which is very dangerous.”

Before Monday’s attack the peace committee set up by the warring communities of Aguleri on the Anambra side and Odeke/ Ochene on the Kogi side had been meeting on regular basis to resolve the crisis amicably. In fact, the last meeting was held between the communities last week at Idah in Kogi State and the people of Aguleri said they were hoping that peace was at long last returning to the area. But as their delegation was returning from the meeting, the clash took place.

Following the frequent clashes in the area, the National Boundary Commission had met with the deputy governors of the two states on many occasions for the purpose of finding a lasting solution to the border problem. Similar meetings chaired by the Director General of the National Boundary Commission with the deputy governors of the two states and the surveyor general of the federation were also held. But from all indications, the road to peace is still bumpy.

For instance, as efforts were being made to resolve the boundary dispute, some representatives of the two states took the battle to the National Assembly. Recently, there was a shouting match at the National Assembly where a member of the House of Representatives from Anambra State, Mrs. Uche Ekwunife and her counterpart from Kogi State, Mr. Ismail Husain exchanged hot words over the controversial oil deposits in the area. The issue also created a hot debate at the National Conference between Dr, Dozie Ikedife from Anambra State and Dr. Ahmadu Ali from Kogi State when the issue of listing Anambra among the oil producing states came up.

Obiano, Wada, move to end clashes

As part of efforts to end the incessant border skirmishes and ensure enduring peace in the area, the Anambra State Governor Obiano has reached out to his Kogi counterpart, Wada.

The governor said: “We are working out a comprehensive strategy and modalities to entrench lasting peace and check excesses of the miscreants. The attack has nothing to do with the oil producing area as some people claim, but an aggression by some misguided persons.”

While enjoining Aguleri people to remain calm and not to take the law into their hands as the two governments are already on top of the situation, the governor said Kogi State government has apologized for the attack and promised that such a thing would not repeat.

Counter claim

Meanwhile, the Odeke and Ocheno communities in Ibaji local government area of Kogi State are  calling on the Federal Government to save them from being killed by Anambra people due to the boundary dispute emanating from the oil wells.

The residents said the call became imperative following the Monday clash which, according to them, left  two persons dead from the Odeke community and others seriously injured.

One of the residents, Benjamin Adiku, who spoke with Sunday Vanguard, said the renewed hostility happened when the Aguleri people, armed with dangerous weapons, attacked their people in their farm settlement, killing two and injuring five others. He identified  those killed as  Ode Inoh and Alfred Ijoba while those injured were named as  Ojone Edinor, Alfred Ijoba, Lawrence Ojoma, Endurance Ajode and Ojunugwa Oboiyi.

 “Our people were only doing their legitimate work when Aguleri people stormed our farms and ordered them to move out of the area, saying the land belongs to them. Before our people, who were not armed, could respond, they opened fire on them, thereby killing two and injuring five others who escaped with various degrees of injuries, “ he said.

“We are calling on the state and federal governments to prevail on the Anambra people so that peace can reign in the area. Government should stop them from attacking and killing our people. These oil wells in dispute belong to us.”Speaking on the incident, the chairman of Ibaji LGA, Mr. Dave Ogu, said there was no need to engage in blame game and sued for peace between both communities. He said making statement or attributing blames when lives had been lost was not good.

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Nigeria to earn N672m daily from Shell’s new oil well

Nigeria to earn N672m daily from Shell’s new oil well

By Tochukwu Eze

Nigeria’s crude oil production is expected to rise by 40,000 barrels per day, as Shell Nigeria Exploration and Production Company Limited, SNEPCo, yesterday commenced production from the first well at the Bonga North West deep-water development offshore Nigeria.

This translates to a crude earnings of N672 million accruable to the country on a daily basis.

Shell, in a statement stated that the Bonga Floating Production, Storage and Offloading, FPSO, vessel has been upgraded to handle the additional oil flow from Bonga North West.

According to the company, the investments made by it and its other project partners in the Bonga North West project include upgrades of local contractors’ facilities and providing specialised training for Nigerians to work in the energy industry.

Commenting on the development, Mr Andrew Brown, Upstream International Director, Shell says “it is also good news for Nigeria, as it is a new source of oil revenues and strengthens Nigeria’s deep-water expertise, a key driver of economic development.

“This is an excellent addition to our deep-water portfolio – a key growth theme for shell’s world-wide upstream business.

The company also noted that four oil producing wells and two water injection wells in the Bonga North West development will be connected to the FPSO, from where oil is loaded onto tankers for shipping around the world.

The Bonga project, which began producing oil and gas in 2005, was Nigeria’s first deep-water development in water depths over 1 000 metres.

Bonga North West represents a significant step forward for the project, as the company said oil from the sub-sea facilities is transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility.

SNEPCO said the Bonga North West project is part of its long-standing commitment to developing deep-water engineering skills in Nigeria.

The Bonga project is operated by SNEPCo, which holds a 55 percent stake.

The other project partners are Esso Exploration & Production Nigeria (Deepwater) Limited (20 percent), Total E&P Nigeria Limited (12,5 percent) and Nigerian Agip Exploration Limited (12,5 percent) under a Production Sharing Contract with the Nigerian National Petroleum Corporation.

- See more at: http://www.vanguardngr.com/2014/08/nigeria-earn-n672m-daily-shells-new-oil-well/#sthash.5oT5bCbf.dpuf