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Europe stocks, euro gain after German morale jump

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LONDON – European shares and the euro got a boost on Monday after German business morale unexpectedly rose in February, lifting investors out of a funk caused by a fall in Chinese home prices.

In Ukraine, where Moscow-backed Viktor Yanukovich was ousted from the presidency, the country’s dollar bonds rallied and the hryvnia currency fell, though there was scant impact on developed markets.

German Bund futures fell to the day’s low after the Ifo business climate index in Europe’s powerhouse economy rose to 111.3 from 110.6 last month, adding to the recent optimism over the economic recovery in the euro zone.

The euro edged up to $1.3769 after the data.

Earlier, shares in Asia fell and the Japanese yen rose as growth in Chinese home prices eased for the first time in 14 months – a sign Beijing’s campaign to tighten credit conditions may be starting to bite.

The FTSEurofirst 300 index .FTEU3 of top European stocks was up 0.13 percent, although a disappointing outlook from German carmaker Volkswagen (VOWG_p.DE) limited gains.

Asian shares excluding Japan .MIAPJ0000PUS fell 0.4 percent and most Asian emerging markets currencies were lower. Tokyo’s Nikkei index .N225 fell 0.2 percent as the yen, which is often sought in times of market stress, strengthened.

“Dollar-yen moves on risk aversion, and when Tokyo stocks are down dollar-yen is down, even if the reason is a drop-off in activity in its (Japan’s) major export market,” said Marshall Gittler, head of global FX strategy at IronFX Global.

Spanish government bond yields fell, approaching recent eight-year lows after Moody’s raised Spain’s credit rating in a further endorsement of Madrid’s efforts to revive an economy once at the sharp end of the euro zone debt crisis.

Moody’s upgraded by one notch to Baa2 with a positive outlook. Spain’s 10-year government bond yields last traded 2.6 basis points lower at 3.53 percent.

“It’s certainly reinforcing positive sentiment in Spain. Moody’s has recognized not only the economic recovery but also the structural reforms … and the fact that they’re sticking to their guns on the fiscal deficit,” said Nick Stamenkovic, bond strategist at RIA Capital Markets in Edinburgh.

The yen was up 0.1 percent at 102.37 to the dollar and slightly stronger versus the euro.

China shares sank to a two-week low, dragging Hong Kong markets down, as property and banking counters slipped on mainland news reports that stoked fears banks have stopped extending loans to property-related companies.

“I would get out of interest rate-sensitive sectors. It’s very hard to navigate right now with policy risk on the rise,” said Hong Hao, Hong Kong-based chief equity strategist at Bank of Communication International.

Data on Monday showed the pace of the rise in Chinese home prices slowed in January for the first time in 14 months, suggesting the government’s efforts to cool the market were having an effect.

YUAN FALLS

The Chinese yuan fell, extending its worst weekly performance in more than two years after the People’s Bank of China set its daily midpoint lower for a fifth session.

On Wall Street on Friday, stocks were off slightly on options-related expirations.

Group of 20 finance ministers and central bankers committed to spurring faster global growth at a two-day meeting in Sydney over the weekend.

The final communiqué said the G20 would increase investment and employment, generating more than $2 trillion in additional output over five years while creating tens of millions of new jobs.

On the commodities front, Brent crude added about 0.2 percent to $110.01 a barrel. Gold added about 0.2 percent to $1,330.80 an ounce after it marked a third straight week of gains.

– REUTERS

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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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