NNPC projects $1tn loss in global oil production by December – Newstrends
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NNPC projects $1tn loss in global oil production by December

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The Nigerian National Petroleum Corporation has estimated global losses from exploration and production activities due to slowing demand for crude oil amid the COVID-19 pandemic will hit about $1 trillion by the end of 2020.

Group Managing Director of the corporation, Mallam Mele Kyari, who stated this on Tuesday at the Nigerian Association of Petroleum Explorationists (NAPE) 2020 Conference, also reiterated the plan of the NNPC to reduce production cost per barrel to $10 by 2021.

The theme of the conference held in Lagos was “Accelerating Growth in Nigeria’s Hydrocarbon Reserves: Emerging Concepts, Challenges and Opportunities.”

He said the NNPC had slashed its cost per unit to between 20 per cent and 30 per cent and would reach the projected target next year.

He said, “We are in challenging times. What COVID-19 did to the oil industry is monumental. It has done a lot of collateral damage to the rest of the industry, entertainment and everything you can think off.

“Of course, the collateral cost to the industry we expect is about $1tn of loss for E&P across the globe.

“There’s an extreme decline in demand for oil and of course other losses through the year which is fatal for the business.

“But businesses must adjust and do things differently. We have pulled down cost and increased revenue and we are focusing more on reducing cost and optimising costs where we are not able to cut costs.

“We are investing in gas because we have seen the resilience of gas and that has taught us that gas will be the future of transition fuel and a great player in the future scenario. We are a gas country with over 600tcf with proven reserves of 203 trillion CF. We have done very little on that. The PIB will be the solution to this.”

Kyari said the only way to survive the difficult situation was to cut or optimise production costs and increase revenue.

Vice President, Prof. Yemi Osinbajo, who also attended the event, said the Federal Government was targeting the growth of the country’s crude oil reserves, currently at about 36 billion barrels to 40 billion and achieve a daily production of three million barrels.

Kyari, in his virtual presentation from Abuja, explained that with over 203 trillion cubic feet of gas, the Petroleum Industry Bill (PIB) when passed into law, would unlock the huge potential in the country.

According to him, without a clear fiscal environment and incentives in place, no one will invest in the sector, adding that by the time the PIB is ready next year, there will be renewed vigour in the industry, especially on the gas side.

He stated that despite the conversations surrounding the extinction of hydrocarbons, crude oil will continue to be relevant in the next 20 to 40 years.

He added that only very efficient companies producing at cheapest cost and getting to the market early would survive.

Kyari expressed delight at the discovery of oil in the frontier basin, particularly in the Benue trough.

He said it would significantly change the dynamics of production in the country, including the expansion of the country’s reserves.

He said, “Times are tough but the opportunities are all there. As a company, we have a target in the upstream and we know that $10 is possible in the industry. A lot is going on in terms of sharing resources, reducing contracting circle etc. We have seen a cost reduction of 20 to 30 per cent and overall at the end of 2021, we will see the $10 unit production cost.

“There are areas where it’s being done for less than $10 and unless we do this, we will not be competitive. The advantage we have is the quality of oil we have and we are one of the most extreme area in terms of distribution, so we have to pull the cost down, otherwise, we will produce oil and not find anyone to buy because you cannot cover the cost ultimately.”

Osinbajo, represented by the Minister of State, Petroleum, Chief Timipre Sylva, explained that though renewable energy remained the future of energy transition, hydrocarbons would remain the dominant source of energy in the immediate future.

He expressed optimism that a single-digit unit cost of production was achievable, provided the entire industry could work together to achieve the set target.

He said, “There’s no gainsaying that the growth of some countries depends on energy availability and utilisation, especially on crude oil and increasingly on natural gas.

“Renewable energy is becoming a cheaper form of energy and response to climate and reduced dependence on hydrocarbons over the next century seems to be inevitable. That notwithstanding, technology and discussions to date suggest that hydrocarbons will remain the dominant source of energy in the immediate future.

“The increased level of uncertainty in oil and gas demand and the emerging technologies on alternative energy have become important elements in making decisions on optimal exploitation of petroleum resources.

“This is more critical now that abundance of hydrocarbons is being discovered in the most unconventional places of the world. I suggest that our discussion should include but not limited to provision of secure energy supplies.”

The vice president stated that the OPEC production curtailments had resulted in lower revenue for the government, adding that it is now imperative for Nigeria to achieve a single-digit cost of production.

“Another key mandate is the growth of the country’s reserves to 40 billion barrels of crude oil as well as the production capacity of three million barrels of crude oil per day. We are fully committed to this mandate, notwithstanding the curtailment.

“We have the assurance that the curtailment will soon be over as the world economy improves. To grow our reserves, we have proposed fiscal incentives that will attract investments in the PIB,” he stated.

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BREAKING: No going back on nationwide protest, Labour replies DSS

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BREAKING: No going back on nationwide protest, Labour replies DSS

The leadership of the Organised Labour has responded to the Department of State Services (DSS) over its warning that the union should shelve its proposed protest billed to hold February 27 and 28.

DSS had admonished the Nigeria Labour Congress (NLC) and its counterpart from Trade Union Congress (TUC) to rescind their decision, saying the plea was in the interest of peace across the country.

But reacting to the DSS’ warning, the President of NLC, Joe Ajaero, said DSS should not blackmail the Organised Labour and arrest those that want to use the opportunity of the protest to foment crisis and by extension, widespread violence as claimed.

The labour leader described the forthcoming action as “peaceful protest against unpardonable cost of living”, adding that the Congress would not fold its arm while Nigerians continue to live in penury.

He said: “We are concerned by the unsolicited advice of the Department of State Security to shelve our planned protest against the unprecedented high cost of living in spite of the indescribable suffering in the land, spiralling inflation, deepening poverty and the Naira at an exchange rate of N1,900 to the US Dollar.

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“According to the Service, the planned protest should be shelved “in the interest of peace and public order”, pre-supposing that the action is intended to be violent and disruptive even when we have a history of peaceful protests.

“More worrying is the new role the Service has assigned to itself, the chief spokes person of the government.

“According to the Service, “It is common knowledge that all levels of Government are striving to ameliorate the prevailing economic condition and as such, should be given a benefit of the doubt, So far, appropriate authorities are working assiduously with a spectrum of stakeholders to fashion out modalities to address the current difficulties”.

“We are equally worried that although the Service is aware that some elements are planning to use the opportunity of the protest to foment crisis and by extension, widespread violence”, and yet have not executed the arrest of these elements.

“We are equally intrigued by the innuendos of the Service, their philosophy of “peace” and wild allegations and we want to reassure them that no one loves this country more than us and on our honour, we would never do anything that will compromise its sovereignty or security.

“Having said this, we would not have ourselves blackmailed or lied against by the Service. Our protest is a peaceful one against the unpardonable cost of living of which the unserviced personnel of the Service are also victims. We cannot fold our hands and pretend all is well. That will be a grievous conspiracy that history will not forgive.”

BREAKING: No going back on nationwide protest, Labour replies DSS

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Ogun shuts down Harvarde College’s Nursing department for lack of accreditation

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Ogun shuts down Harvarde College’s Nursing department for lack of accreditation

The Ogun state government has closed the Nursing Department of Harvarde College of Science Business and Management Studies in Abeokuta as it operated without accreditation from the Nursing and Midwifery Council of Nigeria (NMCN).  

The enforcement team, comprising officials from the Ogun Ministry of Health’s enforcement team and members of the State Nursing and Midwifery Committee (SNMC), sealed the department on Tuesday. 

The shutdown  

Dr Kayode Oladehinde, the Permanent Secretary of the Ogun Ministry of Health, revealed during the enforcement exercise that the private institution had been offering a degree program in Nursing Sciences for approximately six years without the required accreditation.  

  • Represented by the Acting Director of Nursing Services, Mrs. Serifat Aminu, Oladehinde stressed that such unauthorized programs contribute to quackery in nursing, posing a threat to public health. 

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  • The nursing department will remain sealed until it obtains full accreditation, as emphasized by Oladehinde.  
  • He denounced the value of a Nursing degree obtained from Harvarde College and similar unaccredited institutions, stating that graduates would be unable to obtain a valid license to practice in Nigeria and other parts of the world. 

He expressed concern about the proliferation of institutions offering nursing degrees without accreditation, leading to the production of quacks in the nursing profession, which poses a danger to society.  

Oladehinde urged parents and candidates interested in nursing programs to conduct due diligence by checking the NMCN website for a list of accredited institutions, cautioning against wasting time and resources on unaccredited programs. 

The permanent secretary warned parents to be wary of institutions making false claims and assured that the Ogun government would continue its efforts to combat quackery in both the education and practice of the nursing profession in the state. 

In response to the closure, a 300-level student, who preferred to remain anonymous, expressed shock at the lack of accreditation, regretting the financial investment her parents had made on her behalf in the unaccredited program. 

Ogun shuts down Harvarde College’s Nursing department for lack of accreditation

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Senate confirms appointment of 17 commissioners for NPC

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Senate confirms appointment of 17 commissioners for NPC

The Senate on Wednesday, February 21, confirmed the nomination of 17 persons for appointment as National Commissioners of the National Population Commission (NPC).

The red chamber also approved the appointment of Jalal Arabi as the chairman of the National Hajj Commission (NAHCON) and three other commissioners for the agency including, Aliyu Abdul-Razak (Commissioner – Policy, Personnel and Finance), Prince Anofiu Elegushi (Commissioner-Operations) and Prof. Abubakar A. Yagawal (Commissioner-Planning and Research).

The Commissioners of NAHCON cleared by the Senate are Hon Emmanuel Trump Eke (Abia), Dr Clifford Zirra (Adamawa), Mr. Chidi Christopher Ezeoke (Anambra), Isa Audu Buratai (Borno), Bishop Alex Ukam (Cross River), Ms Blessing Brume-Ataguba (Delta), Dr. Jeremiah Ogbonna Nwankwegu (Ebonyi), Dr. Tony Aiyejina (Edo), Mr Ejike Eze (Enugu), Mr. Abubakar Damburam (Gombe) and Prof. Uba Nnabue (Imo).

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Others are Ms. Sa’adatu Dogon Bauchi Garba (Kaduna), Dr Aminu Ibrahim Tsanyawa (Kano), Hon Yori Afolabi (Kogi), Ms. Mary Ishaya Afan (Plateau), Mr Saany Sale (Taraba) and Mr. Ogiri Itotemaan Henry (Rivers).

The report on the screening of the NPC commissioners was presented by the chairman,

Senate Committee on National Identity Card and Population, Senator Abdul Ningi (PDP – Bauchi Central) while the report of the NPC was presented by the Chairman, Senate Committee on Foreign Affairs, Senator Sani Bello.

The Senate also confirmed the nomination of Dr. Kelechi Ohiri for appointment as the director general of the National Health Insurance Authority (NHIA).

The chairman of Senate Commended on Health (Secondary and Tertiary), Senator Ipalibo Banigo (PDP – Rivers West) presented the report.

Senate confirms appointment of 17 commissioners for NPC

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