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NNPC Ltd, Schlumberger (SLB) Ink Upstream Operations’ Boosting Pact

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4 months ago

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As part of strategic reforms aimed at unlocking opportunities in Nigeria’s oil and gas industry, the NNPC Energy Services Limited (EnServ) and Schlumberger (SLB), a renowned global technology company, have signed a technical partnership agreement towards bolstering upstream operations.

A statement from the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye disclosed that the agreement was signed at the NNPC Ltd’s Corporate Headquarters in Abuja on Thursday, with senior management teams from both companies in attendance.

Group Chief Executive Officer, NNPC Ltd, Mele Kyari described the ongoing reforms within the industry as a trigger for potential release of investments in the short term.

In his words, “Quite a number of reforms are unfolding, and at the back of it is a potential release of investment that we are seeing in a very short term.

“Our physical environment is excellent today; contracting processes have been reviewed by virtue of the clear reforms Mr. President has put in place; and ultimately, we are already seeing substantial energy going into unlocking opportunities of today.”

On the numerous benefits of the partnership, Kyari said it would lead to increased activity and more drilling campaigns which would add value to the two organisations.

He revealed that the NNPC Ltd was working on a rig share platform with a definite plan around well drilling activities and associated operations in the coming years, which, he explained, would increase crude oil production and support the ongoing plan to deepen gas utilization in Nigeria.

Kyari, who expressed confidence in the long-standing relationship between NNPC Ltd and Schlumberger (SLB), said the NNPC Ltd would leverage on the assets within its control to accelerate the values that will come from this partnership.

“We are counting on Schlumberger (SLB) as our partners of 70 years. We are in business; we see the opportunities and strategic need to work with you and ultimately, we will create value for our country, “ the GCEO noted.

Earlier in his remarks, the Chief Executive Officer of Schlumberger (SLB), Olivier Le Peuch said the agreement was poised to accelerate the achievement of Nigeria’s exploration and production targets, which will foster Nigeria’s economic growth and prosperity.

“We are here to celebrate the strategic partnership that we signed with EnServ as a technical partner. This agreement is geared towards unlocking the capacities of EnServ for Nigeria, which potentially will help NNPC Ltd to achieve its exploration and production targets.

“We look forward to using this technical partnership as a springboard to accelerate the vision that the industry needs,” Le Peuch added.

He noted that as a company that has been on the shores of Nigeria for 70 years, Schlumberger (SLB) remains committed to investing in local talents and building capacity through technology and performance.

“We are pleased to be at the center of this transition and are in a position where we can bring our technical capability, technology, and capacity to the country so as to support the operations of NNPC Ltd,” he concluded.

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Business

CBN Extends Suspension Of Cash Deposit Fees

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12 hours ago

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September 28, 2024

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In an effort to ease financial transactions, the Central Bank of Nigeria (CBN) has extended the suspension of cash deposit processing fees from September 30, 2024, to March 31, 2025.

In a letter addressed to banks and financial institutions, signed by the Director of Banking Supervision, Adetona Adedeji, the CBN referenced its previous directive, which had initially suspended the fees until September 30, 2024.

Read Also: Nnamdi Kanu’s Trial Delayed As Justice Nyako Steps Down

The suspension applies to cash deposits exceeding N500,000 for individuals and N3 million for corporate accounts.

Hitherto, individual accounts are charged a 2% processing fee, while corporate accounts incur a 3% fee on excess deposits.

The CBN reiterated that all regulated financial institutions are required to continue accepting cash deposits from the public without any charges during this extended period.

The letter reads, “Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria (CBN) hereby extends the suspension of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates. The previous suspension, set to expire on September 30, 2024, has now been extended until March 31, 2025.”

“This suspension pertains to the 2% and 3% fees outlined in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,’ issued on December 20, 2019.”

Recall that in 2019, the Central Bank of Nigeria (CBN) unveiled a plan to introduce fees on cash deposits and withdrawals, set to take effect from September 19, 2019.

The bank explained in a publicly shared circular that the move was part of efforts to limit cash usage and improve the collection of government revenues.

At first, these charges were only applicable to customers in Lagos, Ogun, Kano, Abia, Anambra, Rivers, and the Federal Capital Territory (FCT).

The CBN also outlined that the policy would be rolled out nationwide by March 31, 2020, as part of its cash-less initiative.

In December 2023, the CBN instructed banks and other financial institutions to halt the application of fees on large cash deposits.

This temporary suspension was originally planned to last until September 30, 2024.

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Dangote, Gates Headline Relaunch Of Capital Campaign For Africa

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2 days ago

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September 27, 2024

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The Capital Campaign for the Africa Center was relaunched at the sidelines of the ongoing United Nations General Assembly (UNGA) in New York on Wednesday.

To highlight its importance, Africa’s richest man, President Dangote Group, Alh Aliko Dangote and Co-Chair, Bill and Melinda Gates Foundation, Bill Gates led other notable captains of industry from Africa and the United States of America (USA) graced the event.

ALSO READ: The Tale Of Dangote And Arsenal Football Club

Prominent among those spotted therein include, Chairman, Oriental Energy Resources, Mohammed Indimi; Group Executive Director, Commercial Operations, Dangote Industries Limited (DIL), Fatima Aliko Dangote and Co-Chair, Africa Center, Chelsea Clinton.

Also the elite group are, President/Chief Executive Officer, DIL, Aliko Dangote; Co-Chair, the Bill and Melinda Gates Foundation, Bill Gates; Commissioner for Cultural Affairs, New York City, Laurie Cumbo and Chairman, Afreximbank, Benedict Oramah.

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Dangote not truthful on petrol prices in Saudi Arabia- Findings

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3 days ago

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September 26, 2024

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Fresh findings have revealed that the Founder of Dangote Refinery, Alhaji Aliko Dangote may have lied on live bloomberg interview while  asserting that petrol pump price was 40 percent higher in Saudi Arabia than in it is in Nigeria.
The billionaire, who said this in an interview with Bloomberg, claimed that the product is 40% cheaper in Nigeria than in the Kingdom of Saudi Arabia, known as the second largest producer of crude in the world, with about 9 refineries.
The imbalance of this statement prompted several checks by multiple platforms and organisations, including Biztellers.com.ng, which launched a review of the billionaire’s statement during his recent bloomberg live interview.
Biztellers.com.ng findings reveals that a gallon of petrol currently sells for US$2.48 which when divided into 4 liters accordingly, comes down to US$0.62, and when converted to naira at the open market rate of N1,670 comes down to N1,036 a liter, this is against the current average pump price in Nigeria is about N1100 especially in the far north.
Lagos based online publication, Platform Africa, using data from Saudi Arabia and other reputable global statistic websites and online platforms showed that the claim by the Nigerian oil mogul is wrong.
For instance price tracking sites like statista, and tradingeconomics showed that petrol was actually more expensive in Nigeria than in Saudi Arabia as of today, Wednesday, September 25, and the day the billionaire made the statement.
PMS in Saudi is sold for 2. 33 Saudi Riyal equivalent to 62 cents / litre according to tradingeconimics while the PMS Average price in Nigeria is N1100/litre that is about 67 cents/litre, using the present exchange rate of Naira to dollar.
In Russia, the price per litre of petrol is 64 cent while it goes for 65 cent in Indonesia.
How 63 cent per litre in Saudi is 40% cheaper compared to 67 cent per litre in Nigeria will be left for Africa’s richest man to explain.
However, based on the verifiable figures by the petrol product price tracking institutions, Mr. Dangote is not correct.
PMS is more expensive in Nigeria than in Saudi as of today, Wednesday, September 25, 2024.
Beyond this, an earlier report by Bloomberg showed that contrary to claim by the billionaire on need for Nigeria to totally end petrol subsidy, Saudi Arabia spends $7,000 per person on energy subsidies, highest in G-20 economies.
The kingdom’s total spending on fuel subsidies soared over the past two years, hitting the highest among the Group of 20 economies on a per capita basis, the Bloomberg report has shown.
This, which came amid the harsh impact of petrol subsidy removal by the Bola Tinubu administration, which has cited the unsustainable nature of the decades-long payments, also punctured the claims by Alhaji Dangote that the Nigerian government has to hand over totally from subsidising petrol for its citizens
In 2022, Nigeria spent about $10 billion for the purpose.
The report published in 2023 indicated that Saudi Arabia spent almost $7,000 per person, equivalent to about 27 per cent of economic output, across both explicit and implicit energy subsidies, according to a paper published by the International Monetary Fund (IMF).
Fossil fuel subsidies soared globally since 2020 to $7 trillion last year as governments took measures to protect consumers and businesses from a spike in prices following Russia’s invasion of Ukraine, according to the IMF paper.
It estimated that cutting fossil fuel subsidies could help reduce carbon dioxide emissions, deaths from air pollution, and boost government revenues.
“Fossil fuels in most countries are priced incorrectly,” Simon Black, Antung Liu, Ian Parry and Nate Vernon wrote in the IMF working paper. “Unfortunately, current prices are routinely set at levels that do not adequately reflect environmental damages and, in some cases, not even supply costs,” they added.
China-which spent $2.2 trillion – was the biggest provider of subsidies in absolute terms, followed by the US and Russia, according to the IMF. Saudi Arabia spent a total of $253 billion on subsidies last year, it added.
The IMF has been urging Saudi Arabia to push ahead with measures to cut the government subsidy bill and take steps to protect the welfare of low-income households through increased and targeted social spending. The spending has made Saudi fuel one of the cheapest in the world.
In 2021, the government set a cap for the domestic cost of gasoline to soften the impact of higher living costs on citizens, just months before prices soared to over $100 a barrel.
In its Article IV Consultation, the IMF said that the kingdom’s work on subsidy reforms is “continuing unabated through planned step price increases that will lead to their elimination by 2030.”
Implicit subsidies, which the IMF defined as undercharging for the environmental cost of fossil fuel burning and lost tax revenue, made up the bulk of the global total. Explicit subsidies, or selling fuels as below supply costs, had a share of just 18 per cent.
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