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U.S. Stock Futures Pull Back

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WASHINGTON – U.S. stock futures pulled back to start the week, as weakness in overseas markets and a mixed reaction to corporate deal news set a negative tone.

About 90 minutes ahead of the open, Dow Jones Industrial Average futures fell 26 points, or 0.2%, to 16439. On Friday, the Dow rose 45 points, or 0.3%, but ended the week 1.3% below its record close of 16715.44 hit last Tuesday.

S&P 500 index futures gave up three points, or 0.2%, to 1872 and Nasdaq-100 futures lost six points, or 0.2%, to 3577. Changes in stock futures don’t always accurately predict stock moves after the opening bell.The S&P 500 closed Friday 1% below last Tuesday’s record high of 1897.45.

The Russell 2000 small-cap index, which has been hit particularly hard over the last several weeks, started a rebound in midday trading on Thursday. At Thursday’s intraday low, the index was down 10.4% from its March 4 record high close; since then, it has gained 1.9%. On Monday, the iShares Russell 2000 exchange-traded fund slipped 0.2% in premarket trading.

In corporate news, the U.S.-listed shares of AstraZeneca slumped 10% after the U.K. drug maker rejected what Pfizer said was its final increased offer. Late Sunday, Pfizer made a final offer that valued AstraZeneca at about $120 billion. Dow component Pfizer gained 2%.

“The falling apart of the AstraZeneca deal could be setting a negative tone on today’s trading, because the health-care sector has been one of the better performers,” said Sam Stovall, chief equity strategist at S&P Capital IQ.

The SPDR Health Care ETF has gained 4.9% so far this year, while the S&P 500 has advanced 1.6%.DirecTV eased 0.2% after agreeing to be acquired by AT&T for $49 billion. Dow component AT&T dropped 2.5%.

Campbell Soup slid 6.5% after the convenience-food company topped fiscal third-quarter adjusted earnings estimates, but lowered its full-year sales growth outlook amid disappointing soup sales.

The U.S. economic calendar was bare Monday. Investors will be looking ahead to the minutes of the Federal Reserve’s last policy meeting, to be released Wednesday, followed by data on jobless claims and sales of existing and new homes later in the week.

Meanwhile, data from China showed that home prices increased in April, but the pace of growth slowed for the six straight month. And prices for second homes in Beijing fell by the most in two years.

The yield on the 10-year Treasury note inched up to 2.520% from 2.518% late Friday. Crude-oil futures climbed 0.8% to $102.80 a barrel, while gold futures gained 0.7% to $1,302 an ounce.

The dollar lost some ground against the euro and the yen.European markets declined, with the Stoxx Europe 600 losing 0.3% after closing out last week with a fifth-straight weekly gain. Investors said there was no single catalyst for the weakness, with last week’s disappointing euro-zone growth figures, weak Chinese data and a big drop in AstraZeneca all adding to the negative sentiment.

Also, there was some concern ahead of European parliamentary elections later this month, which look set for a strong showing from anti-European Union parties.

“The weakness in the market today is likely a hangover from last week’s disappointing euro-area growth figures, but also reflects uncertainty ahead of the European elections. There is certainly more nervousness in the market, but I think that will dissipate as soon as the elections are over,” said Aengus McMahon, credit strategist at ING.

Germany’s DAX 30 index lost 0.1% and the U.K.’s FTSE 100 gave up 0.2%, while France’s CAC 40 tacked on 0.2%. Italian stocks bore the brunt of the selling, with the FTSE MIB index falling 1.5%.

Asian markets were lower, with China’s Shanghai Composite losing 1.1% and Japan’s Nikkei Stock Average slipping 0.6%.

– 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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