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OTC Short Courses
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The Petroleum Technology Association of Nigeria (PETAN) in collaboration with Energy and Corporate Africa Houston and Empowerment Plus Institute, Houston, will be organising 2-day courses for delegates as part of the OTC 2013 programme. Click below for more details.
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FT NIGERIA OIL AND GAS 2013
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The FT Nigeria Oil and Gas Report 2013 is scheduled to come out on Monday 6th of May and will be distributed at OTC and to the Nigerian exhibitors there.
To find out about advertising opportunities contact Mr Toke Ibru:
tokeibru@hotmail.com
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|  Remi Aiyela Editor-in-Chief
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Greetings!
Welcome to our 50th issue as we decamp with the rest of the oil industry around the world to the Oil Technology Exhibition (OTC) in Houston from the 6th to the 9th of May. Do come and look for us in the Nigerian pavillion at OTC where we will be launching and distributing our very first print magazine edition of NOGintelligence. We thank our advertisers for supporting us in this big step. We particularly wish to thank Total, Sopetro,The Guardian, Havilah Hydrocarbon Resources, Jirah Development, Coastland Energy, Olaniwun Ajayi LP, Advisory Legal Consultants, Banwo & Ighodalo as well as our contributors.
Our next print edition will be published just in time for CWC's NOG Tech in Lagos from the 4th to the 6th of June and it will be our Technology edition with special features on OTC and new technological developments. Please make sure you let us know very early if you wish to advertise or sponsor.
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Alison-Madueke To Speak At OTC Houston
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The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke (OTC), is set to speak at the largest annual global oil and gas gathering, the Offshore Technology Conference (OTC) which kicks off on the 6th of June. She will speak at the Topical Luncheon scheduled to take place at 12.15pm on the 6th.
The Minister revealed this whilst receiving a delegation of the top management of ExxonMobil Nigeria, sponsors of the Topical Luncheon, led by its managing Director/Chairman, Mark Ward. She said that OTC offers a platform for the propagation of the central objective of the PIB, as well as serving as a ready platform for indigenous operators to up the game on technology trends in the industry.
"OTC, being one of the world's foremost gatherings in technology as far as the oil and gas industry is concerned, clearly sets the pace in what happens on the technology front and this is a highly technology driven industry. So participation in the OTC gives us a lot of understanding, provide platform for knowledge transfer and above all exposure for our indigenous operators," she said.
According to the Minister, the experience garnered over the years has impacted positively on the productivity and general output of indigenous operators and service providers and she urged the Nigerian contingent to take advantage of the enormous opportunities that would be available at the conference and exhibition.
The topic for the Topical Luncheon, which is already sold out, is West Africa Development. The Minister is expected to speak about activity in the west coast of Africa, which has traditionally been an oil hotspot in the global market, given the presence of Nigeria, Angola, Equatorial Guinea and Gabon, which are ranked among the world's largest producers. However, following the discovery of lucrative oil and gas fields further along the coast, these experienced players are set to face competition over the next decade as new producers in the region come on board. Western Africa oil and gas exploration zone is one of the world's richest and most promising for ventures and new opportunities in the upstream market.
The Minister is expected to focus on the oil and gas opportunities and potential, both offshore and onshore, in this vast zone. She will outline some of the discoveries along the west coast of Africa that have led to the identification of the new oil province in the region. She will also discuss the security risks that may impede West Africa's progress in the global oil and gas market will be discussed.
Founded in 1969, the Offshore Technology Conference organizes the world's foremost events for the development of offshore resources in the fields of drilling, exploration, production, and environmental protection. The international oil and gas exhibition forum brings together energy professionals for a comprehensive, peer-selected technical program. OTC also showcases an exhibition of the latest products and services. Attendance consistently exceeds 80,000, and more than 2,500 companies participate in the exhibition. OTC includes attendees from around the globe, with more than 110 countries represented at recent conferences. The mission statement of the conference is "to promote and further the advance of scientific and technical knowledge of offshore resources and environmental matters".
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OPEC daily basket price stood at $99.97 a barrel Wednesday, 1 May 2013
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The price of Organization of the Petroleum Exporting Countries (OPEC) basket of twelve crudes stood at $99.97 a barrel on Wednesday, compared with $100.65 the previous day, according to OPEC Secretariat calculations. Meanwhile, crude oil output from OPEC is set to reach 30.46 million barrels per day (bpd) from 30.18 million bpd in March, as it rebounds from the lowest it has been in over a year.
The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
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India Confirms Asian Appetite For Nigerian Crude
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India's increasing interest in Nigerian crude is confirmed by the revelation that State-owned Indian refinery, Mangalore Petrochemical and Refinery Ltd (MRPL) with a capacity for 300,000 barrels per day, has bought its first cargo of Nigerian crude paying a premium of $5.60 per barrel. The refinery bought a cargo of 650,000 barrels of Okoro crude from BP for June 1-5 lifting. The refiner, as with many Asian refineries, has had to find alternatives to Iranian crude following the United States and European Union sanctions on Iranian crude. Iranian exports are now down to their lowest level since 1986.
US and EU sanctions remain in place over Iran's nuclear programme with Iran accused of developing it for the purposes of making a nuclear bomb, while Iran protests that it is only intended for peaceful purposes.
MRPL had previously bought from Shell's Gabon Rabi light.
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Four Financial Firms Reach Final Stage Of NEITI Audit Award
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The Nigeria Extractive Industries Transparency Initiative (NEITI) has begun qualifying the financial firms that bid for the contract for auditing the oil and gas industry.
Following the submission of Expressions of Interest (EOIs), 43 firms were evaluated by the committee of experts constituted by the Board of the transparency agency. Of these, 4 firms, Taju Audu Electivo Consortium, Abayomi Dosunmu and Company, Olaolu Olabimtan and Company, and Sada Idris and company, have been qualified to participate in the exercise having satisfied the technical criteria. The selection process began last year, in July.
The bids they submitted were Taju Audu: N139.45 million; Sada Idris: N122.47 million; Abayomi Dosunmu: N113.9 million, and Olaolu Olabimtan: N71.82 million.
Describing the process, the Executive Secretary of NEITI, Zainab Ahmed, said that following the initial evaluation process, 21 shortlisted bidders were asked to submit proposals. Of these, 19 firms submitted proposals and were cleared to participate by the Tenders Committee. These 19 firms were evaluated on the following criteria: experience in financial and process audit; demonstrable skills, including best practices in oil and gas auditing and familiarity with EITI processes; adequacy of the proposed work plan and methodology, including organization and staffing; qualification and competence of key staff and; promotion of Nigeria content by key staff.
At the end of the financial evaluation, a firm will be recommended to the Tenders Committee of the Board and the National Stakeholders Working Group (NSWG). The final selection will also require the approval of the Bureau of Public Procurement and Executive Council of the Federation.
Due to a high number of rejected applications, the Executive Secretary has said the Agency intends to organise a technical workshop for bidders interested in participating in the future. The training will show interested bidders how to respond to Requests For Proposal (RFPs). She believes the training will improve the quality of applications submitted in the future and give the Agency more proposals to choose from.
NEITI is the national version of the Extractive Industries Transparency Initiative (EITI), which is a global movement aimed at ensuring that extractive resources aid sustainable development. It was inaugurated in February 2004 by former President Olusegun Obasanjo when he set up the NSWG under the leadership of Mrs Obiageli Ezekwesili.
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Senate Committee To Quiz NNPC Over OMLs 26, 30, 34 and 42
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Senate is spoiling for a fight with the Nigerian National Petroleum Corporation (NNPC) over the award of Oil Mining Leases (OMLs) 26, 30, 34 and 42. The Chairman of the of the Senate Committee on Petroleum, Senator Emmanuel Paulker, disclosed that NNPC has been summoned by NNPC to come before it to defend the sale of four OMLs outside of a competitive bidding process.
The accusation is that the Minister secretly transferred the production rights of the four oil blocks to Atlantic Energy Drilling Concept. The accusation stems from the protest held by Delta State Oil Producing Communities (made up of the Itsekiri, Ijaw, Urhobo, Isoko and Ndokwa ethnic communities in Delta State) during which they staged a blockade of the entrance gates of the National Assembly Complex. They are urging the National Assembly to cancel the award of the OMLs.
Nigerian Petroleum Development Company (NPDC), the exploration and production arm of NNPC has since issued a robust denial to the accusations. They explained that the Federal Government's 55 per cent equity interest in the OMLs were allocated to NPDC and not Atlantic Energy Drilling Concepts as alleged by Delta State Oil Producing Communities.
NPDC is in fact only involved in a strategic alliance with Atlantic Energy under which the company will help NNPC meet its funding obligations. Shell was a joint venture partner in the blocks and following Shell's divestment of its interest in the blocks, NNPC transferred its own equity interest to NPDC. Shell sold its interests in the blocks to First Hydrocarbon, Neconde Energy, ND Western and Shoreline Natural Resources Limited.
The statement from NNPC said: "NPDC entered into a Strategic Alliance Agreement with AEDC, in order to meet its critical funding obligations in the OMLs. These type of funding arrangements have been in existence since the late 1990s. They are not new to the industry. It is therefore false to say that the FGN's 55 per cent equity interest and/or any FGN equity interest has been sold to AEDC. There was never such a sale."
The statement also contained a denial that the Minister of Petroleum, Diezani Alison-Madueke has an interest of any kind in Atlantic Energy. "This allegation is false, unfounded, and malicious and aimed at defaming the character of the person of the minister," it insisted.
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Heritage Oil's Share Price Fell Following OML 30 Under Performance
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FTSE 250-listed Heritage Oil's share price fell yesterday after revelations that OML 30 was not performing as expected. The independent upstream exploration and production company which his dually listed on the Toronto Stock Exchange was expecting to maintain production at the 35,000 barrels per day (bpd) pre-acquisition level but production had to be cut back due to repairs to a faulty manifold. Labour issues has exacerbated matters with production now down to 20,350 bpd. This prompted a share fall as the company announced its results for the 12 months ended December 2012.
The company acquired an interest in OML 30, Nigeria, through Shoreline Natural Resources Limited, whose ownership interests are held by Heritage Oil SNR, a wholly owned subsidiary of Heritage and a local Nigerian partner, Shoreline Power Company. The acquisition provided a material change in proved and probable reserves for Heritage, which RPS Energy Consultants Ltd independently estimate at 412 MMbbls, for interests in Nigeria and Russia, as at 31 March 2012. Tony Buckingham, Chief Executive Officer, commented: "2012 has been a momentous year in the evolution of Heritage. ... Our transformation includes entry into new regions of Nigeria ..." "The Company now has significant producing assets and an enlarged exploration portfolio, providing more balance with both geographic and operational diversification, he added. Since the acquisition of an interest in OML 30, revenues net to Heritage of $234.5 million have been generated. The company made a cash payment of $52.5 million, in April 2013, to reduce the bridge loan to $497.5 million. Average gross production from OML 30 has been 20,350 bpd since the acquisition. Heritage is expecting to push production back up to 35,000 bpd once the repairs are completed by the end of May especially with the labour issues now resolved.
The share price of the company which has producing assets in Nigeria and Russia and exploration assets in Tanzania, Papua New Guinea, Malta, Libya and Pakistan closed down six per cent at 160p May 1st.
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Nine Oil Workers Kidnapped In Bayelsa
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Nine people working for oil service companies, Octopus Clan Nigerian Limited and Deck Oil Services, were reported to have been kidnapped in Ilebiri Creek in Bayelsa State by gunmen. The nine men who were kidnapped on Thursday afternoon at 2pm were engaged in the repair of Agip structures including 18" Tebidaba Brass line, Ogoda Ogboinbiri 24" line at Oporoma, Ogboinbiri Tebidaba 14" line at Ikebiri, Kemebiama, Osiama 6" flowline, Tebidaba wells 14 & 11. The Joint Task Force's Operation Pulo Shield has not yet commented on what they are doing to rescue the 9 and whether they know who the kidnappers are and their location. Meanwhile speculation is rife that the kidnappers are the same group that killed 12 policemen barely a month ago in the Azuzuama area.
The Media Co-ordinator of the Joint Task Force (JTF), Lt.-Col. Onyeama Nwachukwu, has revealed that their operations are yielding results after impounding a vessel, MT Shandy, with 12 crew in Otokomabie Creek near Oloma community in Rivers State where it was seen behaving suspiciously around a Shell pipeline. Another operation saw the JTF seize a barge, Lot-098, in the Odioma waterways in Bayelsa State. The vessel was laden with 50,000 litres of crude oil, suspected to have been stolen.
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May Worldwide Oil and Gas Conferences
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June Worldwide Oil and Gas Conferences
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Once again, please don't don't forget to join our mailing list if you haven't done so already. Remember, you won't have to look anywhere else for your weekly Nigerian oil industry updates, and it's free to join. Do send us your news. And let us know if you want to advertise in NOGintelligence.
Sincerely,
Remi Aiyela
Editor, NOGintelligence Back to top
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