NNPC and IOCs operating in Nigeria including independent oil companies lifted crude oil and condensate worth over $36.023bn; Nigeria is hiring Oracle and Microsoft as the government invests more to save costs and fight corruption; TCN has disclosed that it is prepared to build two new 330KV substations in Kaduna and Zaria . . .
NNPC, international firms lift N11trn oil in 12 months
Nigeria’s government-owned oil and gas conglomerate, the Nigerian National Petroleum Corporation (NNPC) and International Oil Companies (IOCs) operating in the country including independent oil companies lifted crude oil and condensate worth over $36.023 billion between March 2016 and March this year, according to NNPC April statistical report.
This translates to N11.005 trillion at an exchange rate of N304.5 to a US dollar.
The IOCs consist of Chevron Nigeria Limited, Exxonmobil, Total, Nigeria Agip Oil Company (NAOC)/Phillips, Shell Petroleum Development Company (SPDC) and Addax including 24 independent companies among them Seplat Petroleum, Pan Ocean, Newcross, Eroton, Neconde, ND Western, Elcrest, ConOil, Amni, Platform Petroleum and Niger Delta Petroleum Development Company.
Between March 2016 and March this year, the IOCs and independent companies, including NNPC subsidiary, Nigerian Petroleum Development Company (NPDC), lifted a total of 458,754,086 barrels valued at $28,157,503,045 while NNPC lifted 165,079,126 barrels for the domestic and export markets valued at $7.8trn.
Of the total amount of oil lifted, 33,878,441 barrels were for federation export while 131,200,685 barrels were for domestic consumption.
Further analysis showed that of the volume lifted by both NNPC and oil companies, 85 per cent found buyers in Western Europe.
While a total of 247.231 million barrels went to Western Europe within the period, only Australia among countries in the Oceanic/Pacific took 644,729 barrels.
Netherland remained the highest Nigerian crude oil buyer with a total of 61.562 million barrels during the period under review. This is follow by Spain with 60.353 million barrels, France 45,018,319 barrels, United Kingdom 33,295,315 barrels, Italy 16,238,271 barrels, Germany 11,408,525 barrels and Sweden 15,536,939 barrels.
Since the beginning of the year, crude oil price has been fluctuating at an average of $50 per barrel but the Organisation of Petroleum Exporting Countries saw the worse price in March 2016 when price plummeted to $38.71 per barrel.
However, oil price picked up in December 2016 at $54.09 per barrel, courtesy of the OPEC and non-OPEC members including Russia that agreed to a cut of 1.8 million barrels per day from their outputs. Despite the cut, however the price dropped in March 2017 to $51.85 per barrel.
Meanwhile, the corporation has said that crude oil and gas transactions it conducted from April 2016 to April 2017 were worth $2,729.54 million.
In April 2017, Brent crude oil spot price rose to $53.06 per barrel, against $42.25 per barrel recorded during the same period a year ago.
Total export of crude oil and gas receipt for the period of April, 2016 to April 2017 stood at $2.50 billion, out of which the sum of $ 2.29 billion was transferred to the joint venture cash call in line with the 2016 approved budget and the balance of $0.21 billion was paid to the Federation Account.
The report said the JVCC amount fell short of the 2016 appropriated amount of $8.64 billion. This, it said, was due to the twin effect of production disruption in Niger Delta and low crude oil prices during the year.
In March, 2017, Nigeria recorded a decreased oil production of about 12.04 per cent with daily output of 1.60 million barrels relative to February 2017 production and also lagged behind March, 2016 performance by 18.32 per cent.
Nigeria’s OPEC quota is 2.2 million barrels per day.
Nigeria Taps Microsoft to Oracle to Recover From Recession
Nigeria is hiring U.S. technology giants such as Oracle Corp. and Microsoft Corp. as the government invests more to save costs and fight corruption.
An initiative led by Redwood, California-based Oracle has enabled Nigerian authorities to remove 50,000 so-called ghost workers, or fake entries, from the payroll, according to a presidency statement June 29. That followed Oracle’s decision to open an office in Abuja, the capital, in May. Other companies interested in taking on more work in Nigeria include IBM Corp. and Sweden’s Ericsson AB, according to Yusuf Kazaure, managing director of state-owned Galaxy Backbone, which provides technology services to the government.
Galaxy Backbone’s budget has increased by 30 percent this year to 4 billion naira ($12.7 million), Kazaure said in a phone interview last month. State funding for the company will probably increase at a similar annual rate for the foreseeable future, he said. Nigeria is investing 50 percent more on information and communications technology infrastructure this year, totaling about 41 billion naira, according to budget data.
Africa’s most populous country is seeking to recover from its worst economic downturn in more than two decades and is using technology to improve government revenue collection and attract investment. The continent’s biggest oil producer is ranked 136 out of 167 countries on Transparency International’s 2016 Corruption Perceptions Index, a placing that may improve if the government is able to simplify processes such as the awarding of state permits, according to Hakeem Adeniji-Adele, director of public sector work at Microsoft Nigeria.
“The government’s digitization drive is imperative in cutting out the middle man,” he said in an emailed response to questions June 29. “The existence of middle men has left room for corrupt and illegal practices to thrive in the governance and doing business in Nigeria.” Microsoft sees an opportunity to advise and train users, Adeniji-Adele said.
Nigeria’s ministry of industry, trade and investment is in talks with Microsoft to improve e-services, which ties into the government’s objective to improve its World Bank Ease of Doing Business ranking, Constance Ikokwu, communication adviser to Minister Okey Enelamah, said in an emailed response to questions.
TCN to build 2 substations in Kaduna, Zaria
The Transmission Company of Nigeria (TCN) has disclosed that it is prepared to build two new 330KV substations in Kaduna and Zaria, and four additional 132 KV substations at Rigasa Kakau, Rigachun and Jaji, while it will reconstruct the Kaduna-Kano transmission line.
Daily Trust reports the transmission line has been faulty for over two years and is yet to be repaired.
In a statement through TCN’s General Manager, Public Affairs, Seun Olagunju, the Interim Managing Director, Mr. Usman Cur Mohammed, expressed appreciation for the support received from Kaduna State Governor, Mallam Nasir el-Rufai, for the execution of the projects.
It noted that similar collaborations and support were being received from Kano, Ogun, Lagos, Bauchi, Kogi and Edo state governments.
TCN said it was also planning to collaborate with Kebbi, Sokoto, Niger, Imo, Abia, Delta and Anambra states on some power projects.
© 2017 Madjack Business Report