Oil Majors Grumble as Nigeria Seeks 73% Share of Offshore Oil Profits

Petroleum Minister, Diezani Alison-Madueke

Africa’s top oil producer, Nigeria, will seek a bigger share of profits from oil produced offshore when a new industry bill is passed into law, Petroleum Minister Diezani Alison-Madueke said.
The Petroleum Industry Bill, which was sent to Parliament in July, proposes to boost the government’s share to 73 percent from 61 percent, Alison-Madueke said in a statement e-mailed today from the capital, Abuja.
“The proposed increase of government take to about 73 percent is not only competitive but considerate when we look at the scale of other entities around the world,” she said, citing Norway, Indonesia and Angola as examples. Previous terms introduced in 1993 were based on an oil price of $20 a barrel, and are no longer realistic because “crude prices have been on the upward swing,” she said.
The bill, which seeks to reform the way the West African nation’s oil is regulated and funded, was initially introduced to Parliament more than three years ago. Lawmakers were unable to pass it before the end of the last legislative session in May 2011.
Energy companies including Royal Dutch Shell Plc (RDSA), Chevron Corp. (CVX), Exxon Mobil Corp. (XOM), Total SA (FP) and Eni SpA (ENI) said in a joint presentation to lawmakers in 2009 that the proposed tax increases would make exploration “uneconomical.” They pump more than 90 percent of the country’s oil through ventures with state-owned Nigerian National Petroleum Corp. The latest draft of the bill will make Nigerian deepwater oil fields unprofitable if it becomes law, Lagos-based Vanguard newspaper reported Shell Nigeria country Chairman Mutiu Sunmonu as saying on Sept. 24.
Under the terms proposed in the draft bill, royalty and tax would be calculated on the basis of production instead of using terrain and investment as currently done, according to the Petroleum Ministry statement. Lower taxes will be charged for the production of condensate from bigger oil fields and for companies that operate in “ultra-deep water,” the ministry said.
“Royalty by production, as outlined in the bill, is designed to capture the output of a company as opposed to its location, while creating a fair balance between small and big operators,” Alison-Madueke said.
 BusinessNews

Nigerian Cocoa Output May Rise 20% in 2012-13 Season

Cocoa Pods

Cocoa output from Nigeria, the world’s fourth-biggest producer, may rise by as much as 20 percent in the season that starts on Oct. 1, as new farms begin production, an industry group said.
Cocoa trees planted four to five years ago in western, eastern and midwestern regions of Nigeria will begin to bear fruits in the 2012-13 season and raise the country’s output to at least 300,000 metric tons from 250,000 tons last year, Robo Adhuze, spokesman for the Cocoa Association of Nigeria, said by phone today in Akure in the southwestern state of Ondo.
“In the past five years, Nigeria has done so much to raise output, and what we are seeing now is the result of that,” Adhuze said. The government encouraged farmers to expand their farms, replace old trees and also taught them good practices, he said. Last year, eight new varieties of cocoa, with shorter maturity periods and higher yields per hectare, were introduced, he said.
Ondo state, the biggest producer, is expected to increase output to 90,000 tons from less than 77,000 tons last year, Adhuze said, adding production should also rise in Cross River and Edo.
Nigeria ranks behind the Ivory Coast, Ghana and Indonesia in cocoa production, according to the International Cocoa Organization. Shipments of the beans represent the second- biggest foreign exchange earner for Nigeria, Africa’s leading oil producer, according to government figures.
Flooding in parts of Nigeria including Kogi, Edo and Cross River states is causing “anxiety” among the farmers, Adhuze said. “It means that output of cocoa from these states could be affected,” he said.
Flooding worsened after gates on hydro electric dams on the country’s biggest river, the Niger, were opened to prevent them from collapsing under pressure from “high-intensity rains,” Anthony Anuforo, director-general of the Nigerian Meteorological Agency, said yesterday in the capital Abuja.
Nigeria’s cocoa year is divided into two harvests with the main one beginning in October and ending in January, while the smaller crop usually begins in March and ends in June.
 BusinessNews

“Nothing can break Nigeria” – Governor Aliyu

Against all odds, chairman of the Northern Governor’s Forum, NGF, and Governor of Niger State, Dr. Babangida Aliyu believes that Nigeria will remain indivisible and united despite the constant security challenges in the country. Stressing on the continuous unity of the country, Aliyu had asserted that nothing can break Nigeria.
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The governor called on the Federal Government to be more tactful while addressing security problems of the country, saying that it will be better to address security challenges early enough before they get out of hands.
Aliyu said this yesterday in Lagos at a forum organized by the Obafemi Awolowo Institute of Government and Public Policy in commemoration of Nigeria’s 52 independence.
Speaking on the topic: The Search For National Security In Nigeria; Challenges and Prospects, Aliyu urged the government to be more systematic and professional in addressing security related matters.
Governor Aliyu said: “We should be more sophisticated in managing our security challenges and avoid handling the issues in reactionary ways of adopting impulsive measures and strategies that fail to address the fundamental problems on a sustainable basis. We have national security challenges, it does not mean that Nigeria is on the brink of collapse, as being insinuated in some quarters.”
Boko Haram has waged a bloody fight against Nigeria’s central government and has been blamed for killing more than 680 people this year alone.
DailyPost

NEMA warning: Over a million Nigerians will die if Nyos Dam collapses

Over a million Nigerians are likely to die if the Nyos Dam in Cameroon should collapse the National Emergency Management Agency (NEMA) has warned.
The agency made this known at the presentation of a manual to prevent such an occurrence. The manual, which was endorsed on Thursday at a ceremony in Abuja by stakeholders, aims to put measures in place to mitigate flood waters from the lake from affecting the people of Benue State.
The agency said the manual, titled Lake Nyos Disaster Response Manual, was produced to “proactively prepare for the disaster that may arise from the possible collapse’’ of the Lake Nyos Dam in Western Cameroon.
Director-General of NEMA, Alhaji Muhammed Sidi, said Lake Nyos was close to Nigeria and that a 2005 UNDP report had predicted that the dam was at “a point of potential collapse’’.
Sidi, who was represented by NEMA’s Director of Administration, Dr. Zanna Muhammad, said the report predicted that the collapse might be caused by gradual erosion from rain, wind and lake waters, or as a result of violent volcanic eruption.
The representative of the DG explained that the report mentioned the possibility of the breakdown of the dam within 10 years, adding that the eventual failure of the dam would result in the discharge of about 55 million cu. metres of water which would result in flooding downstream.
“It is estimated that between Cameroon border and River Benue, 50 settlements, including Katsina-Ala, Kashimbilla, Waya, Manga, Gamovo, Andie, Terwegh and over 15,000 hectares of land will be flooded.
“Also, over one million people and 20,000 heads of cattle and other livestock will be affected and could perish,” he said.
He also said that financial losses had been estimated to be in billions of naira, comprising of crops, residential and commercial structures, utilities and infrastructure, including roads and bridges and other services.
KILLER WIND
Meanwhile, the Nigerian Meteorological Agency (NIMET) has warned Nigerians to take precautions against violent winds that may occur during the dry season, due to the effects of climate change.
The Director-General of NIMET, Dr Anthony Anuforom, gave the warning in Abuja on Thursday.
He said, “We are transiting now from rainy to dry season; the kinds of things we may experience are violent winds. Therefore, we advise people to avoid staying under trees.
“The reason why we alert people is for them to know ahead of time and take necessary precautions.
“We have no ability to protect natural disasters but the ability to observe what the weather is and inform the people early.”
Anuforom further noted that if forecasts by the agency were strictly adhered to it could help save the situation, adding that any emergency situation could only surprise people unexpectedly if there were no early warnings.
“If adequate disaster risk measures are taken, the number of deaths will decrease because people would have known what to expect,’’ Anuforom said.
 DailyPost

Fuel Scarcity: 18 ships carrying fuel waiting to berth at Lagos Ports

Eighteen ships are waiting to berth and discharge petroleum products at various oil terminals within the Lagos ports, the Nigerian Ports Authority (NPA) said on Thursday.
The “Shipping Position”, a daily publication of the NPA, stated that 13 ships were laden with petrol.
According to the publication, two ships each are carrying kerosene and aviation fuel while one ship will discharge diesel.
The NPA document indicated that four other ships were waiting to discharge general cargoes, including rice and containers.
The publication further stated that 92 ships carrying different cargoes would arrive in Lagos ports between Sept. 26 and Oct. 22.
It added that 17 of the ships would convey petroleum products. (NAN)
 BusinessNews

Patience Jonathan declared fit, scheduled to return to Nigeria soon

inShare

by Isi Esene
There are indications that doctors attending to the first lady, Dame Patience Jonathan, who is generally believed to be receiving treatment in a German hospital might soon be on her way back home.
Reports say her doctors in Wiesbaden, Germany have given her a clean bill of health to return back to Nigeria.
She was speculated to have expressed her wish to accompany the president to New York to attend the United Nations General Assembly but was advised against it by her physicians.
The source said, “She wanted to follow her husband to the 67th United Nations General Assembly in New York but she was advised against that by the doctors that, as they they told her that she needed some more time to rest.
“I can tell you that she is now in a good state after a successful surgery. She was only treated of appendicitis through surgical operation at the German hospital. The First Lady is in a stable state. The doctors at the hospitals have confirmed her fitness, but she needs more time to rest.”
The source did not give a definite date for her arrival.
Special assistant to the first lady on media, Ayo Osinlu, continues to maintain that Patience Jonathan is in the European country for a “moment’s rest” after hosting the first ladies’ conference in Abuja.
Mrs. Jonathan has been out of the country for 34 days.
YNaija.com

Ahead of 2015 elections: PPA want EFCC to jail Orji Kalu

Shocking revelations emerged from the camp of former governor of Abia State and founder of Progressive Alliance (PPA), Dr. Orji Uzor Kalu as the party’s National Chairman, Ken Gbalokoma called on the Economic and financial Crime commission (EFCC) to ensure that the former governor is sent to jail for fraudulent activities during his tenure as Abia State number 1 citizen.
Fondly called OUK by fans and followers, Kalu recently declared his ambition to spearhead the affairs of Nigeria in 2015, but with the party’s assertion; his dream of ruling the country in 2015 may likely hit the rocks.
Ironically, the politician-cum-business mogul who intends to run on the platform of the People’s Progressive Alliance (PPA) is currently under heavy attack by same party who insists he must be sent to prison.
Mr. Gbalokoma said EFCC’s ‘sloppy’ prosecution of the former governor had given him the guts to throw his hat in the presidential contest.
“If the EFCC had put him through diligent trial, Orji Uzor Kalu should have been in jail by now rather than on the soap box canvassing for votes,” Mr. Gbalokoma said.
He said Mr. Kalu’s credentials are marred with fraudulent activities as he plunged “Abia State into a N27.3 billion debt”.
The party chairman also appealed to the Chief Justice of the Federation to expedite Mr. Kalu’s trial in order that he “be sent to jail where he truly belongs to save the nation from further embarrassment.”
It would be recalled that Kalu last Thursday, sneaked into Ile Ife, Osun State, for a secret meeting with the Ooni of Ife, Okunade Sijuwade, with the major preoccupation of seeking the powerful monarch’s support for his supposed 2015 presidential ambition.
Kalu was indicted in 2010 for a 107-count charge of money laundering, brought against him by the Economic and Financial Crimes Commission (EFCC) over the misappropriation of N5 billion belonging to the Abia state government.
The former governor ran for president in 2007 but lost to the late Umaru Musa Yar’Adua.
His ambition to represent his people at the Upper Chamber was truncated by Senator Chukwumereji in 2011.

DailyPost