Nigeria’s midstream and into the business, have also d o w n s t r e a m Nigeria: Midstream, downstream infrastructure gap hits $40bn s t o p p e d i n v e s t i n g i n infrastructural gap has hit about infrastructure, as reports show $40 billion, according to Minister that there has been no of State for Petroleum, Dr. Ibe d o c u m e n t o b t a i n e d b y that besides the government, economy plunged into recession investment in Nigeria’s oil and Kachukwu. SweetcrudeReports. Nigerians with investment as a result of low revenue from gas infrastructure for the last 15 “ We ’ v e e s t i m a t e d t h e Kachikwu, quoted by the capabilities could put up some of crude oil exports. years. infrastructure gap in the Organisation of the Petroleum the required investment rather As a result, investors are The Federal Government on its midstream and downstream to Exporting Countries, OPEC, than the country restricting itself withdrawing from staking their part, has continued to call for be about $30–40 billion and that bulletin published during its to investors from abroad. monies in the oil and gas sector both local and foreign investors is one of the things we are recent 7th annual international S i n c e o i l p r i c e s s t a r t e d due to rising cost of production. with promises to reduce costs of looking at,” he said in a seminar in Vienna, Austria, stated dwindling in 2014, Nigeria’s Stakeholders, who are already CONTINUES ON PAGE 03 A Review Of The Nigerian Energy Industry WEEKLY facebook.com/sweetcrudereports August 9, 2017 twitter.com/sweetcrudeRep www.sweetcrudereports.com UU PP DD A T EE SS WEEKLY BASKET PRICE AUG-04 49.88 JUL-21 46.91 JUL-28 47.99 JUL-21 46.91 JUL-14 45.53 JUL-07 46.68 JUN-30 44.57 JUN-23 43.42 JUN-16 45.21 JUN-09 46.48 JUN-02 48.79 MAY-26 51.11 MAY-19 49.96 Daily | Weekly | Monthly | Yearly 50.24U$ 52 51 50 49 48 47 46 45 44 43 MAY 17 JUN 17 JUL17 AUG-17 An 0il platform Cabotage: NIMASA introduces new compliance strategy Govt targets 3mb/d crude MICHAEL JAMES The Nigerian Maritime Administration and Safety Agency, NIMASA, has oil production introduced a 'New NIMASA level is about 2.2mb/d, the Cabotage Compliance government was working on Strategy', NCCS, towards the increasing this to 3mb/d. actualisation of a successful Kachikwu says country requires $10bn “Investment is needed to coastal and inland trade maintain essential work. regime. Nigeria’s normal production This is in continuation of the yearly to produce, cap oil fields OPEOLUWANI AKINTAYO level is 2.2mb/d, and the agency's quest to ensure full day, mb/d, crude oil production. Annual International Seminar. government would like to raise it implementation of the Minister of State for He revealed this in the bulletin of According to the bulletin to 3mb/d”, he said. Cabotage Act 2003 for the Petroleum Resources, Dr. the Organisation of the Petroleum obtained by SweetcrudeReports, The minister also revealed that benefits of Nigerians. Ibe Kachikwu, says Nigeria is Exporting Countries, OPEC, K a c h i k w u s a i d a l t h o u g h for Nigeria to begin production of Speaking with newsmen, targeting three million barrels per published during its recent 7th Nigeria’s normal production crude oil in new oil fields, it Dr. Dakuku Peterside, the would cost the country about $10 NIMASA Director General, Ogoni gives clean-up as precondition for resumption of oil production billion per year for over three disclosed that the agency years. came up with NCCS to *We have no plans to resume operations in Ogoni - Shell “Just to get fields online and cap them will require an average of secure jobs for qualified he Ogoni people in Rivers MKPOIKANA UDOMA, Port Harcourt Petroleum Corporation, NNPC, T about $10 billion per year in Nigerians in the maritime State have asked the Shell Shell, Total and Agip stopped oil investments over the next three sector. Pe t r o l e u m D e v e l o p m e n t M O S O P , p l a c e d f u l l production in Ogoniland in 1993 to four years,” he noted. The NIMASA DG stated that Company, SPDC, and the Nigeria implementation of the United and has no plans to resume such Kachikwu’s revelation on with the NCCS, the agency Pe t r o l e u m D e v e l o p m e n t N a t i o n s E n v i r o n m e n t a l operations in the area. spending $10 billion yearly on Company, NPDC, to cease Programme, UNEP, report on the "Any suggestion that we are would no longer consider developing a new oil field comes engagements focused on top of its list of conditions for a planning to secretly resume oil applications for grant of on the heels of complaints in the resuming oil production in possible resumption of oil production is untrue," the waivers on manning for industry that the country has not Ogoniland. operations in Ogoniland. company said in the statement. prescribed categories of developed any new oil fields in The Ogoni socio-cultural But, Shell said in a statement President of MOSOP, Mr. officers in vessels engaged in the past 15 years. pressure group, the Movement that the SPDC Joint Venture Legborsi Saro Pyagbara, while CONTINUES ON PAGE 03 for the Survival of Ogoni People, comprising the Nigerian National CONTINUES ON PAGE 02 CONTINUES ON PAGE 02 PG 02 Oil Govt targets 3mb/d crude oil Seplat pushes for merger of small oil production and gas firms CONTINUED FROM PAGE 01 Meanwhile, the minister lamented the loss of $300 billion in oil investments globally in three years, due to the decline in oil price. Speaking at the 2017 Society of Petroleum Engineers’ Nigeria Annual International Conference and Exhibition in Lagos, General Manager, West Kachikwu said the losses were in oil exploration and production. Assets, Seplat Petroleum On the Nigerian side, according to the minister, the loss of these Development Company, Chima investments was due to inefficiency in the country’s security Njoku, has said that small and policy and inconsistency in policies. independent oil and gas He said investors prefer to invest the limited resources companies should form mergers elsewhere in African countries, adding: "What we are losing, t o a c h i e v e o p e r a t i o n a l other countries in Africa are gaining". excellence. “The situation is very challenging when it comes to losing He told SweetcrudeReports in opportunities arising from investment". an interview that for small and “For the first time in the oil sector, the decline in the oil price independent companies to cut resulted into loss of jobs. Infrastructural gap is another factor costs, maximise services and Seplat oil platform which the decline in the price created. stay afloat, there was need for “We have an infrastructural gap deficit of $5 billion because them to merge. sector. time in the sector. government was responsible for infrastructure and we did not He said small companies are “There is a lot to be done by the "Now, costs of production are engage the private sector. also key stakeholders in the oil independent indigenous oil and rising and the small companies “The whole idea of the new petroleum policy is to move the and gas industry and that their gas companies to achieve the are struggling to stay alive. I think private sector into financing part of the projects because interests must be balanced and best in their operations and stay the solution is to form a merger in government cannot do it alone,’’ he said. protected for the progress of the afloat especially at this critical order to cut costs,” he said. Ogoni gives clean-up as precondition for Nigeria: Midstream, downstream infrastructure gap hits $40bn resumption of oil production CONTINUED FROM PAGE 01 percent in 2015. CONTINUED FROM PAGE 01 and Production, Mr. Ali Moshiri, production and cost of doing had said that total investment by Nigeria accounted for $20 briefing newsmen in Port Harcourt, stressed that no oil production business in the country. all players in Nigeria’s oil and gas billion out of the $600 billion can take place in Ogoni without the achievement of a clear process The President of Chevron Africa industry which stood at $20 global investment in the oil and of clean-up and broad public discussion about the future of oil and Latin America Exploration billion in 2014, has dropped by 20 gas industry in 2014. operations in Ogoniland. Pyagbara warned that the alleged plans by Shell and NPDC to resume activities in the land was capable of causing another round of chaos and violence in Ogoniland and would be resisted by the Gas people. "In the recent months, there had been intense and deliberate attempts by Shell to return to the Ogoni oilfields through the back Anadarko moves toward FID for LNG project door without any broad-based discussion with the Ogoni people with the potential of igniting a blaze of conflict and violence that will skirt this forceful attempt to return to the area.