PENGASSAN to Embark on a Three-day Warning Strike over Non-passage of PIB

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has concluded plans to embark on a three-day warning strike in protest against the delay in the passage of the Petroleum Industry Bill (PIB) and other anti-labour activities of employers in the oil and gas sector.

The warning strike follows the expiration of the 14-day ultimatum issued by the National Executive Council (NEC) of PENGASSAN to the federal government and other concerned employers’ and agencies in the sector.

It said the ultimatum had

Foreign reserves fall to six-month low of $36.7 bn

Nigeria’s foreign reserves fell to a six-month low of $36.7 billion by December 1, down 4.5 percent from the previous month as the central bank stepped up its defence of the naira currency, figures on the bank’s website showed.

The reserves of Africa’s biggest economy and top oil producer stood at the same level as in June this year and were down from $38.45 billion on Nov. 2, the data showed on Wednesday.

The naira has

Oando to Double Oil Output to 100,000bpd over Five Years

An indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchanges, Oando Plc, plans to increase its crude oil production capacity to 100,000 barrels per day over the next five years after completing the acquisition of ConocoPhillips’ (COP) Nigerian assets for $1.65 billion in July.

This is coming as Seven Energy International Limited, an indigenous integrated oil and gas development, production and distribution company with interests in Nigeria, and the Nigerian Sovereign Investment Authority (NSIA), better known as the Sovereign Wealth Fund (SWF), yesterday announced a $100 million investment deal.

The Chief Executive Officer of Oando Plc, Mr. Wale Tinubu, said in a statement yesterday that his company’s production capacity was currently 42,500 bpd and that the company would grow through future acquisitions as it seeks to increase market share in Nigeria.

Oando had completed the acquisition of

Dangote places order for refinery equipment as FG grants licence

The quest by Africa’s richest man , Aliko Dangote to make an intervention in Nigeria’s long standing fuel supply hiccups is being pursued vigorously with advance orders believed to have been made for equipment  that will be used to build his proposed $8 billion refinery and petrochemical plant in Lekki, Lagos.

It was learnt yesterday that the orders for these equipment were made ahead of government granting a Licence-To-Establish (LTE) a refinery which Dangote received only a few days ago.

The equipment ordered include ‘Long Lead Items’ and a power plant, which ordinarily would take  between 18 and 21 months from time of order to time of delivery.

It is anticipated that these advance orders may cut short the take-off time of the project.

The Dangote Refinery and Petrochemical Plant is scheduled to become

Nigeria fiscal risks increase as oil nears break-even price

Nigeria’s fiscal risks have become elevated as the retreat of oil prices is bringing them closer to the break-even point at which the Federal and State government budgets become untenable.

“Nigeria’s low levels of accumulated oil windfall savings imply that its oil-price vulnerability kicks in at a much higher threshold than the official oil price benchmark suggests,” said Standard Chartered analysts led by Samir Gadio, head of the bank’s Africa Strategy and FICC Research, in a recent report.

The 2014 Nigerian budget is based on a benchmark oil price of $77.5/ barrel; however any price cushion is eroded from the unrealistic production assumption of 2.3 million barrels per day, as output has been running close to the 1.9m bpd mark.

Nigeria’s benchmark Bonny light crude oil traded at $97.9 per barrel on September 12, down 14 percent from $111.9 per barrel in May, according to data from the Central Bank (CBN).

The Federation Account Allocation Committee (FAAC),

Ijaw Youths Invade Chevron’s Oil Facility in Bayelsa, Shut down Operations

In a commando-like operation, Ijaw youths from Koluama community in Southern Ijaw Local Government Area of Bayelsa State yesterday invaded an oil facility belonging to the nation’s second largest oil producing company, Chevron Nigeria Limited, and successfully short down its operations.

The irate youths who were said to be protesting the attitude of the company to their welfare  are said to be embittered by how issues concerning them had  been handled,

ENI boss investigated for corruption in Nigerian deal

The chief executive of the Italian oil and natural gas company ENI is under investigation over international corruption allegations.

Claudio Descalzi is facing questions about a large Nigerian oil deal.

The company said in a statement that "it is cooperating with the Milan prosecutor's office" and that it "continues to deny any illegal conduct".

Brazil's Petrobras investigates bribery allegations

Brazil's state-run oil company, Petrobras, says it is investigating an alleged bribery scheme reported to be linked to top politicians.

The company said it asked a judge investigating a former Petrobras director, Paulo Roberto Costa, for access to his confidential statements.

Petrobras said it had also written letters to companies allegedly involved in the scheme asking for help.

The scandal comes less than a month before presidential elections.

"Any irregular acts that may have been committed by a person or group of people, whether or not they are company employees, do not represent the conduct of the Petrobras institution and its workforce, made up of thousands of employees," said Petrobras in a statement.

On Saturday, one of Brazil's leading magazines, published the names of more than

Potentials of five major sectors of the Nigerian Economy

Agriculture contributed 41.84 percent to Nigeria’s GDP in 2009, and employs about 70percent of its workforce. Investing in profitable, high growth and sustainable agribusiness in Nigeria is seen as a way to drive youth employment.

Nigeria is blessed with an agriculture friendly climate, coastal and marine resources of over 960 kilometres of shoreline, expansive rivers and lakes covering 120,000 square kilometres and a large consumer market.

“The potential for growth is quite remarkable and agriculture, in itself, is a major contributor to the national Gross Domestic Product. Research shows that Nigeria has over 80 million hectares of arable land. This accounts for about 23 percent of arable land across all of West Africa. Thus, in terms of production, the potential for West Africa to leap forward is immense as the region possesses not only land, but the lowest levels of irrigation in the world,” said Kola Masha, Managing director, Doreo Partners.

He also noted that

Chevron’s first attempt at oil asset divestment in Nigeria runs into murky waters

American oil giant Chevron took a decision last year to pull out of three oil assets in Nigeria and put them up for sale. The decision followed what has gradually become a successful process that has seen a few international oil companies such as Shell, Agip, ConocoPhillips transfer assets to indigenous oil producers through bidding rounds.

However, in this first attempt by Chevron to sell its 40 percent stake in Oil Mining Leases (OMLs) 52, 53 and 55, the American oil company appears to want to sour this success story by attempting to change the rules it set when it invited bids for the assets, writes OLUSOLA BELLO and FEMI ASU.

Now in the Supreme Court over the alleged breach of the bid process of its divestment of interest in three oil blocks, Chevron has added a new chapter to the