Russian oil giant Lukoil has opened preliminary talks with Brazilian state owned oil giant Petrobras regarding a purchase of its assets in Nigeria. Petrobras Africa has stakes in two major Joint Ventures (JV) Akpo and Agbami. The stakes being sold are two of Nigeria’s largest deepwater offshore oil fields. The Akpo field has an estimated peak production capacity of 175,000 barrels per day, while Agbami is currently producing 200,000 barrels per day.
Chief Executive Officer of the company Vagit Alexperov confirmed this in a discussion with Platts.
“We are studying all possibilities. For us today, outside of Russia, the economic indicators have to be higher than we have had here in Russia. When I say higher, I mean 15-20%. In Nigeria, they are so-so,”
Asides the Nigerian assets, Lukoil has embarked on an expansion of other projects in Africa including Cameroon and Ghana.
Why is Petrobras selling ?
Petrobras is selling the stake as part of a wider asset divestment programme to reduce its indebtedness. The company has an estimated $89 billion in liabilities
LUKOIL is one of the largest publicly traded, vertically integrated oil and gas companies in the world accounting for more than 2% of the world’s oil production and around 1% of the proved hydrocarbon reserves.
Lukoil was incorporated in 1991 when 3 Siberian oil firms 1991 when three state-run, western Siberian companies named after the respective town in Khanty–Mansi Autonomous Okrug that each was based in, Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz, merged. Its name is the combination of the acronym LUK (initials of the oil-producing cities of Langepas, Uray, Kogalym. Lukoil has operations in more than 40 countries around the world.
Petrobras was established in 1953, and is the Brazilian national oil company. The Brazilian government owns 54% of the voting rights, while the Brazilian Development Bank and the Brazilian Sovereign Wealth Fund each own 5%. The company is listed on the Brazilian, New York, Frankfurt stock exchanges.
KLM, Air France to resume flight operations in Nigeria on December 7
KLM Royal Dutch Airlines and Air France have announced they will gradually resume flight operations to Abuja and Lagos.
KLM Royal Dutch Airlines and Air France have announced they will gradually resume flight operations to Abuja and Lagos from December 7.
According to a report by Punch, the airlines in a statement on Monday disclosed that international passengers can now fly Air France and KLM from Nigeria (Abuja and Lagos) to Paris and Amsterdam, with the possibility of further transfers to other European and North Atlantic destinations.
In a piece of travel advice, the airline asked customers to ensure they are well prepared for their trip and check the entry and travel requirements for their destination and transit countries in line with travel restrictions and governmental authorizations before making any travel plans. This is as the entry requirements may change with short notice.
General Manager Air France KLM Nigeria and Ghana, Michel Colleau, was quoted to have said, “Flights to and from Lagos and Abuja will be operated in strict compliance with the Nigerian Civil Aviation Authority and international health protocols, adhering to the highest standards of health and hygiene.”
It can be recalled that in September 2020, the Federal Government barred Air France and KLM airlines and some other foreign airlines from flight operations into the country.
The Aviation Minister, Hadi Sirika, said that Air France and KLM were not granted approval for flight operations because tourist visa holders were not allowed entry into their countries.
Nairametrics had reported about a week ago that the Federal Government had given a go-ahead to Lufthansa, Air France/KLM and Qatar Airways to resume flight operations into the country.
BREAKING: CBN retains MPR at 11.5%, holds other parameters constant
The Central Bank of Nigeria (CBN), voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5%.
The Monetary Policy Committee (MPC), of the Central Bank of Nigeria (CBN), has voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5%.
This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday. Other parameters such as Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor remain unchanged.
The committee highlighted that inflation continues to be influenced by structural policies, increase in petrol price and latest #EndSARS protest.
Highlights of the Committee’s decision
- MPR was kept at 11.50%
- The asymmetric corridor of +100/-700 basis points around the MPR
- CRR was retained at 27.5%
- While Liquid Ratio was also kept at 30%
More details shortly…
Port Harcourt Refinery to get a facelift in Q1 2021 – NNPC
NNPC is set to commence the second phase of the rehabilitation of the Port-Harcourt Refinery in the first quarter of 2021.
The Nigerian National Petroleum Corporation (NNPC) is set to commence the second phase of the rehabilitation of the Port-Harcourt Refinery in the first quarter of 2021.
According to the African Business Intelligence Report, NNPC is working hard and round the clock towards ensuring that four refineries are up and running by 2023.
The Group MD of NNPC, Mallam Mele Kyari made this disclosure and said, “The vision of revamping the pipelines is in tandem with the Refineries Rehabilitation Project, which we have promised to deliver by 2023. I am happy to announce that the funding challenge which had stalled the second phase of the rehabilitation of the Port Harcourt Refinery has been resolved. The contract for the second phase will soon be awarded and work will commence in Q1 of 2021.”
According to Mallam Kyari, a lot has been put in place to boost exploration and production with a view of achieving 3m barrels per day production target.
What you should know
Nairametrics had reported that the first phase rehabilitation was to take place 2 years ago and to be executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria.
It was expected that after the phase-1 of rehabilitation, the Refinery complex should be able to reach its 60% capacity utilization.
Further rehabilitation of the PHC refinery is expected to enhance its production capacity to meet its production targets
Putting the refineries in good shape to produce optimally would stem down the huge imports of the refined petroleum products, considering that about 90% of the refined petroleum products consumed in Nigeria are imported.