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

Published

3 years ago

November 18, 2020

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: Court stops Amaewhule-led 27 Rivers Assembly members from sitting

Published

9 hours ago

May 10, 2024

Trends Admin

Martins Amaewhule

Breaking: Court stops Amaewhule-led 27 Rivers Assembly members from sitting

The state High Court sitting in Port Harcourt, Rivers state, has barred the 27 lawmakers led by speaker, Martins Amaewhule from further sitting as members of the state House of Assembly.

The suit listed 25 lawmakers as 1st to 25th defendants and the governor of Rivers State, the Attorney-General, and the Chief Judge of the state as 26th to 28th defendants.

Ruling on a motion ex-parte, a copy of which was dated May 10 and obtained in Port Harcourt, the court also stopped the governor, the attorney-general, and the Chief Judge from interacting with the affected lawmakers.

The order specifically asked the lawmakers to stop parading themselves as members of the House of Assembly or conducting any legislative business as members of the House.

The court also ordered them to stop sitting at the auditorium of the House of Assembly quarters located along Aba Road or any other place whatsoever to conduct business as members of the House of Assembly.

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The court said: “An order of interim injunction is granted restraining the 1st to 25th defendants from parading and holding out themselves as members of the Rivers State House of Assembly and or meeting sitting at the auditorium of the House of Assembly quarters located at off Aba Road, Port Harcourt or any other place whatsoever to purport to carry out the legislative business of the Rivers State House of Assembly their legislative seats having been declared vacant pending the hearing and determination of the motion on notice.

“Another interim injunction is hereby made restraining the 26th to 28th defendants from dealing with, interfacing, accepting any resolution, bills and or however interacting with the 1st to 25th defendants in the purported capacities as members of the Rivers State House of Assembly their legislative seats having been declared vacant with effect from 13th December 2023 pending the hearing and determination of motion on notice.”

The court further directed that the order, the motion on notice, and other processes on the 1st to 25th defendants be within seven days by substituted means.

The court adjourned to the 29th of May for the motion on notice.

The lawmakers affected by the order are Martin Amaewhule, Dumle Maol, Major Jack, Franklin Nwabochi, Christopher Ofiks, Azeru Okpara, Enemi George, Granville Wellington, Ngbar Bernard, John Iderema, Queen Uwuma Williams, Loolo Opuende, Abbey Peter, Igwe Aforji, Justina Emeji, Ignatius Onwuka, Chimzie Nwankwo, Lemchi Nyeche, Barile Nwakoh, Emilia Amadi, Nkemjika Ezekwe, David Okobiriari, Nwankwo Sylvanus, Gerald Oforji and Wami Solomon.

Breaking: Court stops Amaewhule-led 27 Rivers Assembly members from sitting

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JUST IN: Police take over Rivers House of Assembly quarters

Published

10 hours ago

May 10, 2024

Trends Admin

JUST IN: Police take over Rivers House of Assembly quarters

Some armed policemen have taken over all the two entrances to the Rivers State House of Assembly quarters located along the Aba Road, Port Harcourt, the state capital.

The first and second gates to the lawmakers’ estate were reportedly safeguarded by about 30 police with many patrol vans used to block the entrances.

The development came shortly after the Martins Amaewhule-led House of Assembly claimed that the state governor was planning to demolish the quarters following his recent surprise visit to the facility.

But the Governor, Siminalayi Fubara, had explained that his visit to the estate on Thursday was harmless.

The governor said, “Is the Assembly quarters not part of my property? Is there anything wrong in going to check how things are going on there?

“You are aware of the developments. We have a new speaker, and I went there to see for myself how things are. There might be a few things I might want to do there for the good of our people.”

It was learnt that following the alarm raised by Amaewhule, the anti-Fubara lawmakers including some chieftains of the All Progressives Congress (APC) kept vigil around the estate till daybreak.

Armed policemen were seen barricading the gates on Friday to secure the facility.

Meanwhile, the Sim Media Volunteers (SMV) has called on the Inspector-General of Police (IGP) to monitor the activities of policemen in the state and ensure they observed the rules of engagement.

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The convener of the group, Frank Kilsi, decried the arrest and intimidation of the governor’s supporters by the police saying the development could lead to anarchy.

Kilsi, who spoke in Port Harcourt, on Friday, said, “We call on the Inspector-General of Police to rein in his men and exercise restrain by stopping the unnecessary attack or wanton arrest on any of the governor’s supporters, as further harassment could lead to anarchy and breakdown of law and order that may not do our state any good.”

Kilsi appreciated the overwhelming support of Rivers people for Fubara and their decision to stand firm in defence of democracy despite challenges.

He said, “We, the youths of the state, under the aegis of SIM Media Volunteers, do hereby emphasize the need for peace, justice and development in Rivers State.

“We implore all relevant stakeholders such as the citizens, political leaders, traditional institutions, and law enforcement agencies, to ensure that the rights and freedom of the people are upheld and protected at all times.

“To this end, we would like to acknowledge and applaud the great youths of Rivers State for being peaceful and law-abiding even in the face of provocation”.

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Kilsi applauded the leadership of Fubara, commending his efforts to improve the state’s Internally Generated Revenue (IGR) from N12bn to N27bn within a year of his administration.

He said this had singled him out amongst his contemporaries as he highlighted other developmental successes in human capital development, quality Infrastructure delivery, provision of the functional healthcare system, revamping of the educational sector, job creation, security and welfare of citizens.

Kilsi backed the factional Speaker, Victor Oko-Jumbo, and Leader, Sokari Goodboy describing their emergence as a welcome development in the journey to liberate Rivers from the bondage.

He said, “Indeed, true redemption has begun in Rivers State and we shall stand firm as youths of our dear state to support the new leadership of the House and the indefatigable governor of Rivers State.

“We are indeed gladdened by the news of our Leader and Governor of Rivers State rolling out drums to celebrate his one year in office beginning with the commissioning of projects on Tuesday, May 14, 2024.

JUST IN: Police take over Rivers House of Assembly quarters

Source: The Nation

News

BREAKING: Tinubu confers GCON national honour on Awujale

Published

11 hours ago

May 10, 2024

Trends Admin

Awujale and paramount ruler of Ijebuland, Oba Sikiru Adetona

BREAKING: Tinubu confers GCON national honour on Awujale

President Bola Tinubu has conferred the second highest national honour of Grand Commander of Order of Nigeria (GCON) on the Awujale and paramount ruler of Ijebuland, Oba Sikiru Adetona, for his immeasurable and invaluable contributions to national development.

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The president was represented by his Vice, Alhaji Kashim Shettima on Friday at the Olabisi Onabanjo University, Ago Iwoye, for a book presentation on “Reinventing Governance in Nigeria”, as part of activities marking his 64th coronation as a Paramount ruler and 90th birthday.

The President described Awujale as an extraordinary royal father and hero of Nigeria’s democracy who is adored all over the country for his sincerity of purpose and courage in the face of any adversity threatening national development.

The ceremony also featured the inauguration of Oba Sikiru Adetona School of Governance, Olabisi Onabanjo University, Ago-Iwoye, Ogun State.