A Review of the Nigerian Energy Industry

PIB: DPR suspends fresh award of oil license

27 February 2013, Sweetcrude, Lagos – The Department of Petroleum Resources, DPR, Nigeria’s emasculated oil industry watchdog has suspended award of new exploration licenses pending the passage of the Petroleum Industry Bill, PIB.

Mr. Osten Olorunsola, Director, Department of Petroleum Resources, DPR who made the disclosure, said passage of the bill will help ensure predictability and commitment, adding: “You need firm commitment and firm predictability of the law. We have to wait for the bill to be passed.”

He disclosed that while major energy companies have toned down their investments and shunned exploration because of uncertainty about the new law, smaller producers are increasing drilling activities in an effort to boost output.

Speaking on recent divestments in the Nigeria oil and gas sector, Olorunsola said the divestments is due to bigger oil majors’ inability to profit from exploration in certain areas producing low volumes of crude.

“A lot of that is coming from all these indigenous companies that are buying assets from Shell as well as some success from some marginal field holders,” he said.

He maintained that the divestments are starting to yield positive results for local oil companies, adding that, “We had about 10 rigs, much more in comparable terms and timing in 2012. And that just shows the success of all these divestments.”

Also speaking, Samir Gadio, a London-based emerging-markets strategist at Standard Bank Plc, said, “The major concern is that oil production has remained virtually stationary over the past few years due to the lack of investment in the sector which partially reflects the uncertainty surrounding the bill.”

The Petroleum Industry Bill, first sent to the National Assembly in 2008, did not become law during the tenure of a previous legislature and was reintroduced by President Goodluck Jonathan in July.

Fiscal provisions in the bill seek to raise Nigeria’s share of revenue to 73 per cent from 61 per cent, Petroleum Minister Diezani Alison-Madueke has stated.

Royal Dutch Shell Plc (RDSA), Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), Total SA (FP) and Eni SpA (ENI) run joint ventures with the Nigerian National Petroleum Corporation, NNPC, that pump more than 90 per cent of the country’s oil.

Companies including Shell and Exxon Mobil have criticized the fiscal terms as likely to make investment in offshore oilfields unprofitable. Most have held back on funding more exploration while Shell and ConocoPhillips have sold some of their onshore assets to Nigerian companies.

Bonny Light Crude, Nigeria’s top export grade, gained 0.1 percent to $115.35 in London, the lowest since February 21. Oil exports account for more than 90 per cent of the country’s export earnings and about 80 per cent of government revenue, according to the Petroleum Ministry.

Companies including London-based Heritage Oil Plc (HOIL) and Lagos-based Neconde Energy Limited bought stakes in Nigerian oil fields jointly owned by Shell, Total and Eni. Oando Plc (OANDO), a Nigerian energy company, purchased the local unit of ConocoPhillips.

Forty-seven oil rigs were operating in the country’s Niger River delta region in the fourth quarter compared with 37 a year earlier, according to the Department of Petroleum Resources.

Nigeria’s crude oil reserves were down 1.9 per cent to 36.5 billion barrels in 2012 from 37.2 billion barrels a year earlier. Average daily oil and condensate output stands at 2.6 million barrels, according to the DPR.

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  • Appeal to the free world and to muslims
    SWISS GUANTANAMO AGAINST DR. COLONEL MOHAMED ELGHANAM
    AS SUPPORTED VIA SEVERAL International articles, and TV PROGRAM

    My brother has been a prisoner in Switzerland since March 12, 2007, although he has never been convicted of any crime. People have recommended to me that I contact you. They say that you might help me bring wider attention to his plight, and pressure on the Swiss to release him, before it is too late.
    My brother, Colonel Dr. Mohamed Elghanam, refused to spy on the Islamic community in Geneva, and refused — since 2005 until now– to cancel his complaint against the Swiss intelligence who committed mental and physical violations against him during their failed attempts to recruit him.
    The Swiss imprisonment of my brother for an alleged mental disorder, and under a cover of mandatory psychiatric treatment, is, in reality, due to his refusal to cooperate with the Swiss Intelligence, and his exposing that they carried out acts of intimidation against him, and that members of the Swiss government were involved in these actions .
    the Swiss have refused to hear any of the witnesses requested by my brother during the past seven years, although legally they are required to be heard.
    Among the witnesses who Colonel Dr. Mohammed Ghanam still ask and did ask since 2005 untill now are Ministers, as Calmy- rey (concellers minister),
    Pscal couchepin and
    Leuenberger(it est le president de la Suisse)
    this is a criminal attitude of the Swiss government, and we demand the President of Switzerland for 2012 to appear immediately and officially with the witnesses whose had referred above to testify or to release Colonel Dr. Mohammed Ghanam immediately, and Here is the name of the Swiss president, his fax and his e-mail
    Eveline Widmer-Schlupf, Fax 41313233852
    info@gs-efd.admin.ch

    Dear reader, please contact him and condemn the Swiss behavior, and also send this Appeal to everyone you can, and ask them to request the release of Colonel Dr. Mohamed Elghanam immediately.
    N.B.
    My brother Colonel Dr. MOHAMED El GHANAM is the author of Anti-terrorism law in Egypt, and former director of legal research in the Ministry of Interior in Egypt. Also, he is a Dr. of Criminal Law, and Professor in several Egyptian law universities.
    My brother is professor in the Police Academy in Cairo, also he taught many African officers several classes in the Egyptian police academy [ especially about Anti-terrorism ].
    My brother represented Egypt many times in America and Europe as Expert in Anti -Terrorism.
    But, since 2001, he had Political Asylum in Switzerland.
    please distribute the statement to the news agencies and promoted in the media, or via what you can to from the organization gathering, demonstration or manifestations to sit in front of the Swiss embassy or anywhere else it deems appropriate and useful
    We need solidarity with Colonel Dr. Mohammed Ghannam
    Lastly,
    SEVERAL International articles, and TV PROGRAM about Colonel Dr. Mohamed Elghanam :-
    1.http://www.independent.co.uk/opinion…s-7469072.html

    Robert Fisk: Jailed in Geneva – the colonel who … – The Independent
    <<<<<<>>>>>>
    Mar 2, 2012 – He is 54 but looks 70 – “like an Indian yogi with a long white beard,” as ex-Colonel Mohamed el-Ghanem’s Swiss lawyer puts it. “I entered his …

    http://www.independent.co.uk/opinion…s-7469072.html

    Robert Fisk: Jailed in Geneva – the colonel who stood up against Mubarak, but refused to spy for the Swiss
    His defence of Christian Copts made him a thorn in the side of Egypt’s regime. But when he fled, Colonel Ghanem found himself in an equally dangerous game.
    2. jeune afrique , French magazine.
    http://www.jeuneafrique.com/Article/JA2671p050-051.xml0/suisse-hosni-moubarak-prison-service-secretgypte-suisse-il-faut-sauver-le-colonel-ghannam.html
    Also here ia a,
    3. Swiss TV report about Colonel Dr. Mohamed Elghanam
    This is the link:
    http://la1.rsi.ch/falo/welcome.cfm?idg=0&ids=0&idc=43112
    4. here is the article about my brother in the press French ,Le Point. Fr.
    http://www.lepoint.fr/monde/egypte-l-etrange-histoire-de-mohamed-el-ghanam-02-05-2012-1457397_24.php

  • Appeal to the free world and to muslims
    SWISS GUANTANAMO AGAINST DR. COLONEL MOHAMED ELGHANAM
    AS SUPPORTED VIA SEVERAL International articles, and TV PROGRAM

    My brother has been a prisoner in Switzerland since March 12, 2007, although he has never been convicted of any crime. People have recommended to me that I contact you. They say that you might help me bring wider attention to his plight, and pressure on the Swiss to release him, before it is too late.
    My brother, Colonel Dr. Mohamed Elghanam, refused to spy on the Islamic community in Geneva, and refused — since 2005 until now– to cancel his complaint against the Swiss intelligence who committed mental and physical violations against him during their failed attempts to recruit him.
    The Swiss imprisonment of my brother for an alleged mental disorder, and under a cover of mandatory psychiatric treatment, is, in reality, due to his refusal to cooperate with the Swiss Intelligence, and his exposing that they carried out acts of intimidation against him, and that members of the Swiss government were involved in these actions .
    the Swiss have refused to hear any of the witnesses requested by my brother during the past seven years, although legally they are required to be heard.
    Among the witnesses who Colonel Dr. Mohammed Ghanam still ask and did ask since 2005 untill now are Ministers, as Calmy- rey (concellers minister),
    Pscal couchepin and
    Leuenberger(it est le president de la Suisse)
    this is a criminal attitude of the Swiss government, and we demand the President of Switzerland for 2012 to appear immediately and officially with the witnesses whose had referred above to testify or to release Colonel Dr. Mohammed Ghanam immediately, and Here is the name of the Swiss president, his fax and his e-mail
    Eveline Widmer-Schlupf, Fax 41313233852
    info@gs-efd.admin.ch

    Dear reader, please contact him and condemn the Swiss behavior, and also send this Appeal to everyone you can, and ask them to request the release of Colonel Dr. Mohamed Elghanam immediately.
    N.B.
    My brother Colonel Dr. MOHAMED El GHANAM is the author of Anti-terrorism law in Egypt, and former director of legal research in the Ministry of Interior in Egypt. Also, he is a Dr. of Criminal Law, and Professor in several Egyptian law universities.
    My brother is professor in the Police Academy in Cairo, also he taught many African officers several classes in the Egyptian police academy [ especially about Anti-terrorism ].
    My brother represented Egypt many times in America and Europe as Expert in Anti -Terrorism.
    But, since 2001, he had Political Asylum in Switzerland.
    please distribute the statement to the news agencies and promoted in the media, or via what you can to from the organization gathering, demonstration or manifestations to sit in front of the Swiss embassy or anywhere else it deems appropriate and useful
    We need solidarity with Colonel Dr. Mohammed Ghannam
    Lastly,
    SEVERAL International articles, and TV PROGRAM about Colonel Dr. Mohamed Elghanam :-
    1.http://www.independent.co.uk/opinion…s-7469072.html

    Robert Fisk: Jailed in Geneva – the colonel who … – The Independent
    <<<<<<>>>>>>
    Mar 2, 2012 – He is 54 but looks 70 – “like an Indian yogi with a long white beard,” as ex-Colonel Mohamed el-Ghanem’s Swiss lawyer puts it. “I entered his …

    http://www.independent.co.uk/opinion…s-7469072.html

    Robert Fisk: Jailed in Geneva – the colonel who stood up against Mubarak, but refused to spy for the Swiss
    His defence of Christian Copts made him a thorn in the side of Egypt’s regime. But when he fled, Colonel Ghanem found himself in an equally dangerous game.
    2. jeune afrique , French magazine.
    http://www.jeuneafrique.com/Article/JA2671p050-051.xml0/suisse-hosni-moubarak-prison-service-secretgypte-suisse-il-faut-sauver-le-colonel-ghannam.html
    Also here ia a,
    3. Swiss TV report about Colonel Dr. Mohamed Elghanam
    This is the link:
    http://la1.rsi.ch/falo/welcome.cfm?idg=0&ids=0&idc=43112
    4. here is the article about my brother in the press French ,Le Point. Fr.
    http://www.lepoint.fr/monde/egypte-l-etrange-histoire-de-mohamed-el-ghanam-02-05-2012-1457397_24.php