Business
Slower growth in China and Europe drags world stock lower
LONDON – Europe and Asia dragged world equity markets lower on Monday as concerns about slower growth in China prompted investors to cut their risks.
The dollar slipped against major currencies as expectations that the Federal Reserve is in no rush to tighten policy kept the benchmark 10-year bond yield near last month’s six-month low.
Shanghai shares hit a three-week low as Beijing announced regulations that tighten its grip on interbank lending and aim to defuse risks among “shadow” non-bank financial firms that act like banks. Fresh data also added to evidence of a cooling property market.
“Markets think any weakness (in the Chinese economy) from here will be met with a policy response from the authorities,” said Manik Narain, strategist at UBS. “But there is room for China to disappoint.”
The benchmark MSCI world equity index fell 0.1 percent while European shares .FTEU3 lost 0.6 percent.
Emerging stocks .MSCIEF outperformed their developed counterpart by rising 0.3 percent, approaching last week’s 6-1/2 month high. Wall Street was heading for a weaker open with S&P futures down 0.3 percent.
The dollar fell 0.1 percent .DXY against a basket of major currencies while the euro ticked higher. The dollar fell to a 3-1/2 month low of 101.07 yen.
NO STRAIGHT LINE
European equity markets were dragged lower by British pharma group AstraZeneca, whose shares fell more than 13 percent after it rejected a sweetened “final” offer from Pfizer.
Deutsche Bank fell more than 2 percent after the lender unveiled plans to raise 8 billion euros ($11 billion) in new capital, in its third capital increase since 2010.
Deutsche’s cap hike gives it the firepower for the investment banking push, especially in the United States, after a retreat by competitors Barclays, UBS and others left a gap that it aims to fill.
But it also underscores how the bank fell short of its ambitious turnaround targets and how burdensome fines and settlements and lagging profitability have hampered management efforts to fortify capital by retaining earnings.
European shares have been rallying in recent weeks on expectations that the European Central Bank would cut interest rates to support the economy.
“It’s not going to be a straight-line recovery and people will lose confidence in it at times,” Richard Marwood, senior investment manager at AXA Investment Management, said.
“But you’ve got a safety net (from central banks) and I still think the stocks market is a better place to be than the bond market.”
The 10-year Irish government bond yield briefly fell towards last week’s record low after Moody’s upgraded Ireland’s credit rating by two notches to Baa1 .
“Ireland has come from being one of the weakest countries in the euro zone … but now in an upwards rating cycle, Ireland should do better than its current peers,” said Peter Schaffrik, head of European rates strategy at RBC.
Other peripheral yields in Italy and Spain rose as investors looked to book profits before European elections later this week. German Bund futures rose 7 ticks.
U.S. crude oil rose 0.6 percent to $102.67 a barrel.
– REUTERS
Business
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
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.
Business
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Business
Local Firms Lead Revival of Idle Oil Wells – SPE
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.”





