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ICYMI: Weekly roundup of major news from Nigeria’s Energy Sector

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This is a roundup of the major news in the Nigerian Energy Sector for the week ended June 30th 2017.

 1. Only 2 NNPC subsidiaries were profitable in 2016 – Report

In a review of the NNPC 2016 Report, BudgIT, a civic organisation, identified the NNPC Retail and the Nigerian Gas Company, NGC, as the only two subsidiaries of the 11 subsidiaries of the Nigerian National Petroleum Corporation, NNPC, that consistently made profits during the year. Premium Times Ng

2. BPP urges court to void N1.786b contract for PHCN’s liquidation

The Bureau of Public Procurement (BPP) has urged a Federal High Court in Abuja to void a N1.786,287,040 contract awarded for the wind-up/liquidation of the Power Holding Company of Nigeria (PHCN), claiming it was illegal. The Nation

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3. Court sets aside $2.5b judgment got by Shell, Esso against NNPC

The Court of Appeal in Abuja has set aside a portion of an arbitral award got by Shell Nigeria Exploration and Production Limited (Shell) and Esso Exploration and production Limited (Esso) against the Nigerian National Petroleum Corporation (NNPC). By the portion of the award, made by an arbitration tribunal in Lagos on October 24, 2011, NNPC was ordered among others, to pay Shell and Esso over $2.5billion for abusing a Production Sharing Contract (PSC) between them in relation to the operation of oil filed identified as Erha Deepwater Project. The Nation

4. Foreign firms to develop solar projects across Nigeria

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A Germany-based global solar developer, Soventix, and Gentec EPC have formed a joint venture called Soventix Hybrid Limited to develop solar projects across Nigeria. According to a statement from the firms, with the agreement and respective capabilities, both companies have secured a strong market position in the Nigerian solar market. Punch Ng

5. A’IBOM oil communities to Mobil: Relocate to A’Ibom or leave our lands

Four core oil host communities namely; Ibeno, Eket, Esit Eket and Onna Local Government Areas, in Akwa Ibom State, have asked the Mobil Producing Nigeria Unlimited, MPNU, to vacate their lands if it was averse to relocating its administrative headquarters to the state, its operational base, as directed by the Federal Government. Vanguard Ng

6. IBEDC begins asset, customer enumeration in Ibadan

Ibadan Electricity Distribution Company, IBEDC, has commenced its Asset and Customer Enumeration, ACE, in its distribution network. +The ACE is the proper tracking and data collation of all customers under the network, using a Geographic Information System, GIS, technology to capture asset details and customer information. Vanguard Ng

7. Century Energy, Excel E&P, Millenium Oil & Gas set to produce first oil

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Three indigenous oil producing companies, Century Energy Exploration & Production (E&P), Excel E&P and Millenium Oil and Gas, are set to produce their first oil in Nigeria. According to Africa Oil and Gas Report, the companies have already completed fields development as well as put in place facilities for production. Vanguard Ng

8. Lekoil ships 250,000 barrels oil to Shell from Nigerian field

Lekoil Limited, Monday, confirmed the lifting of a shipment of 250,000 barrels of crude oil to Shell Western Supply and Trading Limited. Sweet Crude Reports

9. NNPC’s staff cost takes lion’s share of $33.8 bn 2016 revenue –Report

The Nigerian National Petroleum Corporation (NNPC) overhead costs took the lion share of $33.8billion it generated in 2016, latest findings from BudgIT, a data and technology civic group has revealed. Sun News

10. Petralon appoints strategic advisor

Petralon Energy Limited has appointed Mr. Constantine ‘Labi Ogunbiyi as Strategic Adviser to its board. As Strategic Advisor, he works closely with Mr Mutiu Sunmonu, Chairman of the Board and non-Executive Directors, Ms Edith Unuigbe and Mr Aigboje Aig-Imoukhuede. The Nation

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11. NNPC to continue managing refineries

The Federal Government, yesterday, stated that the management of the country’s refineries would remain within the purview of the Nigerian National Petroleum Corporation, NNPC, irrespective of whatever model the government adopts to revamp and upgrade them. Vanguard Ng

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12. Nigeria’s state oil company agrees $700 mln joint venture -NNPC

Nigeria’s state oil company said on Thursday it had agreed a joint venture to cover more than $700 million cost of developing new oil fields in its southern Niger Delta energy hub. AF.Reuters

13. Disengagement: Hope rises for Total oil workers’

The National Industrial Court, Abuja, has fixed Sept.26, to hear the case of Felix Adariku and 256 other disengaged workers’ of the Total Exploration and Production Company. NAN.Ng

14. FG loses N131.8bn as oil production drops again

An analysis of various reports from the Nigerian National Petroleum Corporation has shown that the total volume of crude oil produced in Nigeria has been reducing since January this year, leading to a cumulative loss of about N131.8bn. Punch Ng

15. Our refinery‘ll transform economy, says Dangote

Dangote Group’s investment in oil and gas will transform the economy from a single commodity market to a sustainable diversified economy, Chief Executive Aliko Dangote has said. The Nation

16. Association raises concern over electricity tariff for hotels

The Nigeria Hotel Association (NHA) on Wednesday raised concerns over inflated electricity tariff issued to hoteliers across the country by various DISCOS’. Mr Lanre Awoseyin, the President of the Association appealed to the Federal Government for intervention. NAN.Ng

17. No concession approval for refineries, says Kachikwu

The Minister of State for Petroleum Resources, Ibe Kachikwu, on Monday stated that the country’s three refineries were embroiled in confusion, but added that there was no approval to sell the plants or give them out to private investors as concessions. Punch Ng

18. C’River to build 26MW power plant in Tinapa

The Cross River State government has expressed its readiness to commence the construction of another power plant in addition to an ongoing 21 megawatts plant in the state. Funded by the Export-Import Bank of India and the Cross River State Government, the 26MW gas-powered plant in Tinapa is expected to be completed in 24 months. Punch Ng

19. FG okays gas masterplan to boost industrial growth

Fresh move to unveil a new gas master plan to drive Nigeria’s industrial growth is underway, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said, also stating that the Federal Executive Council (FEC) approved the masterplan following his presentation. Guardian

20. ‘Four power plants to add 524MW this year’

At least 524 megawatts of electricity will be added to the quantum being generated in the country before the end of this year, the Federal Government has said. It stated that four power plants would produce the 524MW, adding that more electricity would be generated by two other plants in the first and second quarters of 2018. Punch Ng

21. Nigeria needs $10b yearly to achieve Gas Master Plan’s goals

the President of the Nigerian Gas Association (NGA) Dada Thomas, has said that, in order to achieve the objectives set out in the Nigerian Gas Master Plan, at least $10 billion yearly investment is required over two to four years period. The Nation

22. BEDC to publish power schedule

In view of prevailing electricity generation limitations nationwide, the Benin Electricity Distribution (BEDC) Plc will soon begin the publication of power availability schedule for customers in its franchise areas of Edo and Delta states. The Nation

23. Electricity: FG seeks $5bn loan from World Bank

The Federal Government is seeking a loan of $5bn from the World Bank Group to boost power availability in Nigeria, investigation has shown. The World Bank had in April stated that a powerful delegation from Nigeria was in Washington DC to discuss assistance for the nation’s power sector, but did not disclose the details of the talks. Punch Ng

24. France to invest over €1b in Nigeria oil industry

The French Government has said that it has set aside about one billion euros to be invested in the Nigeria Oil and Gas industry, stating that Nigeria remains her first economic trading partner in Africa. The Nation

25. Oando gets drone licence from NCAA

The spokesman of the authority, Sam Adurogboye, revealed that the Nigerian Civil Aviation Authority (NCAA) has issued the first Remotely Piloted Aircraft/Drones (RPAS) Operators Certificate (ROC) to Oando Plc. The Nation

26. Nigeria’s state oil company agrees $700 mln joint venture -NNPC

Nigeria’s state oil company said on Thursday it had agreed a joint venture to cover the more than $700 million cost of developing new oil fields in its southern Niger Delta energy hub. AF. Reuters

27. We’ve provided meters to all MD customers within our network — EKEDC

The management of Eko Electricity Distribution Company Plc (EKEDC) said on Friday that it had provided meters to the 6,834 Maximum Demand (MD) customers within its network, as directed by the Nigerian Electricity Regulatory Commission (NERC). Vanguard Ng

28. Stanel Gas plant for inauguration July 7

In a statement made on Friday, the ‘one stop’ mega center would be officially commissioned by the executive governor of Anambra State, Willie Obiano on July 7, 2017. Over 700 youths are set to be employed as the Stanel Group ultra-modern mega gas plant in Awka, Anambra state is set for inauguration, CEO of Stanel Oil, Stanley Uzochukwu has announced. NAN.Ng

29. Oil prices rise, highest in two weeks

Oil prices, which dropped below Nigeria’s 2017 budget benchmark price of $44.50 per barrel, hovering around $43/barrel in the past two weeks, yesterday rose significantly across all grades and markets. This is even as the United States production declines, easing concerns about deepening oversupply. Vanguard

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Business

After 22 years, NBS is set to commence National Business Sample Census

The National Business Sample Census is expected to commence on October 12 2020, and end on December 12 2020.

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Dr Yemi Kale, National Bureau of Statistics, NBS, Federation Account Allocation Committee, FAAC

The National Bureau of Statistics, with the support of the World Bank, has commenced the process of implementing the 2020 National Business Sample Census (NBSC) in Nigeria. This is exactly two decades and two years after the last business census of establishments in the country.

This disclosure was stated in a circular signed by Ichedi, Sunday Joel, Head, Public Affairs & International Relations Unit, which was released by the Statistician-General of the Federation this morning.

The Survey which is coming after a similar one conducted twenty-two years ago (1997/98) is necessary, especially now that the current government is re-structuring the economy for faster growth through support to Small, Medium and large-scale enterprises, in order to increase their productivity.

The National Business Sample Census is expected to last two months from October 12 to December 12.

The main objectives of NBSC includes:

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• To compile, frame, and develop instruments and concepts, establish standards and methodology for industrial and business surveys in Nigeria.
• To serve as a benchmark for updates of subsequent commercial and industrial sector statistics.
• To develop a national directory of commercial and industrial business establishments, with all their associated social and economic characteristics
• To provide the country with comprehensive and detailed information about the structure of the Nigerian economy.

The Census will cover all the thirty-six (36) states of the Federation and FCT, with establishments in all economic sectors involved in the exercise.

For the avoidance of doubt, the establishments to be covered should have a fixed structure and location, a separate shop with a different entrance, and enclosed from dwelling place (in the case of residential areas), shops should have locks and keys for a market setting. While kiosks and shops under the umbrella are not to be listed during the census.

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All commercial and industrial businesses in each LGA will be identified and listed by the state. Name, location address, postal address, phone number, email address, year of commencement, number of activities engaged in, main type of activity, and others are questions that will be asked.

NBS enumerators with customized T-Shirts and Face Caps will visit your establishment, at any date within the stipulated period, to collect necessary information for the census. Please oblige them with the information, as your cooperation is germane towards the successful execution of the census exercise.

However, the Bureau wishes to assure you that any information given will be kept in absolute confidentiality, and will not be divulged to a third party.

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Economy & Politics

Lagos revisits Ehingbeti Economic Summit, to hold first virtual edition

The Commissioner for Economic Planning and Budget said the State will again host the Ehingbeti Summit.

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Lagos, Sanwo-Olu, Businesses that must remain closed after May 4

Lagos State government has decided to resuscitate its annual Ehingbeti Summit after it held the last one in 2014.

The 2020 edition, which is to hold virtually between November 10-12, is themed ‘For greater Lagos: Setting the tone for the next decade.’

This was disclosed by the Commissioner for Economic Planning and Budget, Samuel Egube on Sunday during an interactive session with journalists, which was attended by Nairametrics.

Egube explained that most of the developments recorded in the states over the years were from ideas and recommendations gathered from the previous editions of the summit.

According to him, the summit, which is a collaboration between the state and private sector operators, has seen the government implement 109 out of 119 resolutions suggested to the state government in past editions.

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He said, “The rail line projects, the Lekki toll gate, among others are ideas generated from the economic summit. The summit has a rich history and is firmly established as a credible forum for stimulating economic growth for Lagos state. It is our belief that you cannot lead a place like Lagos with one mind you have to bring together all the minds. The first one was hosted in 2000 making this the 20th year since the first summit was held. The first three editions were deliberately diagnostic but by the fourth one, we had started to create a blueprint and have started to implement it from the early decisions that had been made.”

He added that the good thing about the summit is that the government is responsible for the decisions taken and that they are obliged to report back to the next Ehingbeti what it has done with the decision taken and if there are challenges.

We highlight what those challenges were and take other decisions on how to repair those challenges. To some it appears the ambitions are too high, because how do you put the private sector in the lead and collaborate in that manner. They have wondered whether the government can be trusted to follow through with this idea of collaboration, but the performance shows that yes, we follow through,” he stated.

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According to him, with the summit, what the Lagos state government is trying to do is stimulate contribution from the private sector, get them interested in the governance of the state and lead the way in terms of the outcomes.

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Company Results

SAHCO suffers 92% decline in profit, as travel restrictions bite harder

Analysis of the company’s results indicates that revenues dipped as a result of COVID-19 travel restrictions.

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SAHCO suffers 92% decline in profit, as travel restrictions bite harder

Skyway Aviation Handling Company Plc (SAHCO), reported revenues of N3.1 billion in the second quarter of 2020 compared with N3.5 billion in the same period in 2019. This represents an 11.9% decrease relative to the same period last year.

SAHCO Plc, formerly known as Skypower Aviation Handling Company Plc, prior to its privatization, is 100% owned by the Sifax Group, and incorporated as an Aviation Ground Handling Service Provider under the Nigerian Company & Allied Matters Act of 1990. SAHCO Plc’s  duties involve all the actions that take place from the time an aircraft touches down on the tarmac, to the time it is airborne. The company also ensures that the right assignment is carried out in an efficient, speedy, and safe manner, deploying the right tools.

A careful analysis of the latest results of the company indicates that revenues dipped as a result of COVID-19 travel restrictions. Travel restrictions affected SAHCO Plc’s operations, but an increase in revenues from domestic and foreign cargo handling gave the company a lifeline amidst business uncertainties.

SAHCO Plc has 10 revenue-generating segments: foreign handling, domestic handling, cargo handling – export, DCS/PAX handling, cargo handling – domestic, equipment rental, investment property, pilgrimage, haulage/crew bus services, and airport security services.  Revenues from eight of these segments declined in Q2 2020, compared with the same period last year; however, revenues from cargo handling increased.

(READ MORE:NAHCO retrieves Ethiopian Airlines handling deal)

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Revenues from cargo handling – income increased by 16.04% to N2.2 billion in the current period, compared with  N1.9 billion in the same period last year. Revenues from cargo handling – export increased by 8.26% to N146.7 million in the period under review, relative to N135.5 million in the same period last year.

It is expected that performance would improve, following the lifting of foreign travel restrictions on the 5th of September 2020. However, things may not transform sooner, as there are one or two challenges facing the sector. For example, although travel restrictions have been lifted, the conditions passengers have to meet before travel, may be overwhelming for some people to go through; thus, the number of travelers is not expected to peak yet.

The Earnings Per Share (EPS) of the company declined by 92.11% in Q2 2020, from 12.67 kobo to 1 kobo, compared with the same period last year. The decline in distributable profit by 93.34% to N11.42 million in Q2 2020, relative to N171.50 million in Q2 2019, contributed to this decline.

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SAHCO Plc’s shares were listed on the floor of the NSE on April 26th, 2019. The shares currently trade at N2.93 per unit. The highest price for a unit of share in 52 weeks was N4.19 and the lowest N1.42. A total of 20,391 units was sold in the last seven days trades. Shares outstanding is 1,353,580,000 units and its market capitalisation is N3,965,989,400 billion.

(READ MORE:FG travel restrictions on 13 countries: A little too late?)

Nigerian Aviation Handling Company Plc (NAHCO), operates in the same sub-sector as SAHCO Plc – transport-related Services. NAHCO Plc’s share price is N2. The highest price for a unit of share in 52 weeks was N3.01 and the lowest is N1.90. A total of 8,162,828 units was sold in the last seven days trades. Shares outstanding is 1,624,218,750 units, and its market capitalisation is N3,248,437,500 billion.

With the surge in cargo revenues, SAHCO Plc recently received delivery of new Ground Support Equipment (GSE). This is expected to improve its ground power operations, in terms of cargo and passenger loading operations, as well as aircraft mobility. The newly acquired fleet of equipment consisted of 50 Cargo pallet dollies, 45 container dollies, 3 passengers step loaders, and 50 baggage tag machines. The company also recently introduced a branded Ankara uniform for its frontline operating staff. The MD of the company, Mr. Basil Agboarumi, noted that the reasoning behind the branded uniform is to showcase the Nigerian culture to the world.

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