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Asian Markets Look to Yellen

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BEIJING – Hong Kong stocks shot up on Tuesday, leading Asian gains, as the region moved higher ahead of Federal Reserve Chairwoman Janet Yellen’s testimony to Congress.

The Hang Seng Index closed up 1.8% at 21963, its strongest daily percentage gain since November, as a number of factors combined to push the market higher. Financial stocks, beaten down in the recent emerging market selloff, recovered strongly, with moves exaggerated as some investors bought stocks to exit short positions that benefit when a stock falls in price.

Industrial & Commercial Bank of China rose 2.4% in Hong Kong, while China Construction Bank added 3.1%.

In addition, Hong Kong was catching up with a rally in mainland China on Monday. The Shanghai Composite gained 2% in the previous session, while the Hang Seng lost 0.3%.

The mainland market moderated Tuesday from its strong showing in the previous session, with the Shanghai Composite ending 0.8% higher at 2103.67.

The focus in Shanghai was the debut of Foshan Haitian Flavoring & Food Co., the second-largest Chinese IPO since the country lifted its more-than one-year moratorium in January. The company raised 3.8 billion yuan ($627 million) in its recent public offering and ended the day up 29.6%.More broadly across Asia, the region tracked small overnight gains in the U.S., where Wall Street crept higherahead of Ms. Yellen’s testimony, scheduled on Tuesday and Wednesday. Although Ms. Yellen isn’t expected to break any new ground, markets will be looking for clues on the central bank’s plans to pare back its bond-buying program in light of the recent disappointing U.S. economic data.

South Korea’s Kospi rose 0.5% to 1932.06, Singapore’s Straits Times Index was up 0.4% at 3029 and Australia’s S&P/ASX 200 added 0.6% to 5254.50 as the country’s earnings session progressed.

Shares in Australia & New Zealand Banking Group rose 2.2% after the lender said its first-quarter profit rose almost 21%, while the quality of the bank’s credit continued to improve. Cash profit, a measure that strips out one-time items and is closely followed by investors, rose 13%.

The world’s largest manufacturer of hearing implants, Cochlear, plunged 8.9% in Sydney after the company made its second profit downgrade since June. The company is trying to win back trust with a new device, the Nucleus 6, after it had to recall a previous model in 2011 due to defects.

Australia’s largest investment bank was also in focus on Tuesday, as shares in Macquarie Group dropped 3.8% after the company said that client activity remains subdued in some businesses tied to capital markets, though it reaffirmed that its financial performance would improve this fiscal year as market conditions continue to improve.

Japan was closed for a public holiday on Tuesday, and the yen was steady in Asian trade—last at ¥102.23, compared with ¥102.27 late Monday in New York.

– WALLSTREET JOURNAL

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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