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OML 30 shutdown: Nigeria loses $20.8m in four days

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The shutdown of OML30 flow stations in the Ughelli area of Delta State host communities over breach of agreements may have cost the country a total $20.8 million in four days.

The 112 communities, which are host to eight flow stations in the area, on Friday, November 06 shut down the facility and chased away its workers.

They accused operators of the flow stations, Heritage Energy Operational Services Limited (HEOSL), of “obligations failure and consistent display of gross indifference to the host communities.”

According to a report by the Nigerian Tribune, the flow stations produce not less than 80,000 barrels of crude oil per day, worth about $5.12 million.

The host communities, represented by their OML30 Cluster Management Committee/President Generals had, last Friday evening, invaded and shut down all oil explorations in the flow stations.

Speaking to journalists on Monday at the gate of Afiesere Flow Station, the OML30 host communities’ President Generals, led by their Chairman, Dr Harrison Patrick Oboghor, and Secretary, Mr Ibuje Joseph, said the HEOSL “has displayed gross indifference, and consistent failure of its obligations to host communities in all its ramifications.”

The host communities particularly accused HEOSL of failure to pay the GMOU fund for the last two years, despite the conducive environment in OML30 as well as a mediation by Delta State Government on May 18, 2020.

The host communities also accused HEOSL of a “total stoppage of scholarship award and payment to host communities since 2016,” resolving not to leave the premises “until all their demands are met by HEOSL.”

Their other demands are the refusal by the operators to carry out the agreed staff audit of its Edjeba and Lagos offices; its reneging in providing corporate social responsibility (CSR) projects in OML30 since it became an operator of the asset and the non-inclusion of indigenous personnel into management positions to reflect 70/30 as enshrined in the GMOU, among others.

 

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Business

Nigeria’s oil revenue not enough to cover petrol import costs – Finance minister

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Nigeria’s revenue being generated from its low oil production cannot cover the cost of imported petrol, Minister of Finance, Budget and National Planning, Zainab Ahmed, has said.

She stated this on Thursday in an interview with Reuters on the sideline of the World Economic Forum (WEF) in Davos.

She said the Federal Government hopes that oil production will average 1.6 million barrels per day (bpd) this year.

In the first quarter of 2022, Nigeria’s oil production averaged 1.5 million bpd.

The minister said, “We are not seeing the revenues that we had planned for. When the production is low it means we’re … barely able to cover the volumes that are required for the (petrol) that we need to import.”

This year, the FG had budgeted 1.8 million bpd of production, but frequent crude theft and attacks on pipelines continue to affect the nation’s wealth.

In April, it asked the national assembly to drop the projected production volume to 1.60 million barrels per day.

Despite higher oil prices due to the Russia-Ukraine war, under-recovery costs, also known as petrol subsidy, continue to erode gains.

Nigeria has spent about N1 trillion on petrol import shortfall in the last four months and will spend up to N4 trillion this year. This has also dwindled the federation revenue — just as the Nigerian National Petroleum Company (NNPC) Limited has been unable to remit any amount to the government purse this year.

On the recent hike of the monetary policy rate by the Central Bank of Nigeria (CBN), the minister said the move was necessary due to policy adjustments by the US Federal Reserve and central banks in Europe.

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Aviation

No plane crashed in Lagos – FAAN, NEMA

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Two government agencies, the Federal Airports Authority of Nigeria and National Emergency Management Agency, have dismissed reports of a fresh plane crash in the Ikeja area of Lagos.

An internet user who saw a plane being towed away had sent the picture to the social media, concluding that it was the wreckage of a fresh plane crash in Lagos.

The aircraft, which had missing wings, was spotted on Ikeja-Agege road, causing gridlock along the route on Tuesday as the news went viral on the social media.

But FAAN in a terse statement posted on its social media handles, said Nigerians should disregard the news.

It stated, “The Federal Airports Authority of Nigeria would like to inform the general public to disregard the news making the rounds on social media about an alleged crash at Ikeja Airport.

“The aircraft was sold by the owner to a buyer, who was taking it to its final destination.”

Also, Ibrahim Farinloye, the zonal coordinator, South-West, NEMA, said after due consultations with all critical stakeholders and tracking of all incoming and outgoing flights in Lagos, there was no plane.

An aviation analyst, Daniel Dikio, had also tweeted his observation of the viral video.

“It is an Airbus A319, hasn’t flown domestically in years. I can see traces of a green logo; it likely belonged to First Nation Airways in its time.

“The wings are separated cleanly; this wouldn’t happen in a crash. The separation is a sign of dismantling.

“There is no damage to the fuselage, almost impossible given the purported circumstances”, Dikio noted.

 

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Business

FG targets 1.4mbpd domestic refining before 2027

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Minister of State for Petroleum Resources, Chief Timipre Sylva

The Federal Government has disclosed plans to actualise 1.4 million barrels per day, mbpd, domestic refining of crude oil in the next five years.

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