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U.S. Stock Futures Rise

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NEW YORK — U.S. stock futures edged higher, putting the S&P 500 back near record territory, as investors shrugged off some overseas weakness.

European markets slipped, pulling back from a six-year high, as worries over pressure on Ukraine’s currency offset upbeat data out of Germany.

About 90 minutes ahead of the open, Dow Jones Industrial Average futures gained 23 points, or 0.1%, to 16210. On Tuesday, the Dow erased an early gain of as much as 59 points to close down 27 points, or 0.2%.

S&P 500 index futures rose three points, or 0.2%, to 1849 and Nasdaq-100 futures tacked on six points, or 0.2%, to 3694. Changes in stock futures don’t always accurately predict stock moves after the opening bellThe S&P 500 rose into record territory for a second-straight session on Tuesday, but reversed course to end the day 0.2% below its Jan. 15 all-time closing high of 1848.38.

Stocks have rallied over the past several weeks as investors think the recent string of disappointing economic releases, including Tuesday’s drop in consumer confidence, was a result of bad weather in parts of the country, and therefore temporary.

“We’ve erased the January gloom, and turned back to investing,” said Mark Lehmann, president investment bank JMP Securities.

He thinks that despite a stretch of bad weather and some worries about emerging markets, some of the same factors that produced the strong gains in 2013 will continue to play out in 2014. “The upside may not be as great” this year, Mr. Lehmann said. “But [the U.S.] market has taken over people’s focus, and it’s still pretty good. It’s still the place to be.”

At 10 a.m. ET, new-home sales for January are expected to show a 3.1% drop to a seasonally adjusted annualized rate of 401,000.Earlier, the Mortgage Bankers Association said mortgage applications fell 8.5% on a seasonally adjusted basis in the latest week, with the purchase index dropping 4% to the lowest level since 1995.

The yield on the 10-year Treasury note rose to 2.719% from 2.701% late Tuesday, a two-week low.

Gold futures slipped 0.4% to $1,337.70 an ounce, after settling Tuesday at a near four-month high, while crude oil futures added 0.5% to $102.33 a barrel. The dollar gained some ground against the euro and the yen.

In Europe, the Stoxx Europe 600 slipped 0.3%, after closing Tuesday at the highest level since Jan. 14, 2008.

Ukraine’s hryvnia fell to another low against the dollar and has tumbled almost 10% since Monday, as expectations have grown that Ukraine will have to devalue its currency significantly to secure needed financial assistance.

Meanwhile, the GfK German consumer climate indicator for March rose to a six-year high of 8.5 points, topping expectations of 8.2 points. In addition, the second estimate of fourth-quarter U.K. gross domestic product showed growth of 0.7%, matching expectations.Germany’s DAX 30 index lost 0.3%, France’s CAC 40 gave up 0.5% and the U.K.’s FTSE 100 declined 0.4%.

In Asia, China’s Shanghai Composite gained 0.3% to snap a four-session losing streak, while Japan’s Nikkei Stock Average lost 0.5%.

Among some early stock movers, Tesla Motors climbed 4% in active premarket trading. The stock has run up 18% over the past two sessions to an all-time high, ahead of an expected announcement of a battery-production partnership.

Lowe’s rallied 3.9% after the home-improvement retailer reported fiscal fourth-quarter earnings that were in line with analyst estimates, and added $5 billion to its stock-buyback program.

DreamWorks Animation slid 10% after the computer-animation studio reported fourth-quarter revenue that fell more than expected, offsetting adjusted earnings that were in line with forecasts.

Abercrombie & Fitch climbed 7.9% after reporting better-than-expected fiscal fourth-quarter adjusted earnings, citing strength in its direct-to-consumer business and improving same-store sales trends.

– 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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