Connect with us
nairametrics

Business News

Why Anambra, Kogi, and Enugu are yet to be recognised as oil-producing states

The @DPRNigeria has ignored calls to recognise Anambra, Enugu, and Kogi states as oil-producing regions in Nigeria, Africa’s largest crude oil producer.

Published

on

Oil Producing states

The Department of Petroleum Resources (DRP) has ignored calls to identify Anambra, Enugu, and Kogi states as oil-producing regions in Nigeria, Africa’s largest crude oil producer.

Members of the Senate Committee on Petroleum (Upstream), chaired by Taiwo Alasoadura (APC, Ondo), had questioned the timeframe of exploration activities in these regions, as Orient Petroleum which was given the licence to explore crude oil since 2012 is yet to begin work.

This drew criticism from Senator Chukwuka Utazi, from Enugu State, whose senatorial district is affected. Utazi accused DPR of not compelling the oil company to do its duties within the past seven years.

The committee proceeded to demand an explanation from DPR as to why it has failed to take action against the company.

Why DPR is yet to identify these states as oil producers: Meanwhile, Orient Petroleum is yet to meet certain requirements, DPR told the Senate Committee on Petroleum (Upstream) in a letter.

GTBank 728 x 90

The licence given to Orient Petroleum enables the company to explore crude oil in the Oil Prospecting Licences (OPLs) 915 and 916. However, the company has been unable to convert the OPL to Oil Mining Licence (OML), which is a key requirement in recognising a place as an oil-producing area.

This has consequently delayed the recognition of Anambra state, Enugu state, and Kogi state as oil-producing states for no‎w, Alasoadura read during a meeting with officials of the National Boundary Commission (NBC).

Meanwhile, 50 percent of Orient Petroleum activities is expected to be relinquished after the conversion. In the meantime, none of that has been done, as the company is still carrying out test-runs in the discovery areas.

Deal book 300 x 250

About Orient Petroleum: Orient Petroleum Resources Plc (OPR) is one of the 18 successful private companies, out of 65 applicants, that were granted the License to Establish refineries in Nigeria in May 2002.

In February 2004, OPR became the first Nigerian company to obtain an Authority to Construct license from the Federal Government of Nigeria (FGN) to construct a private petroleum refinery in Nigeria.

OPR was also granted two petroleum prospecting license blocks by the FGN, to provide a dependable source of crude oil feedstock to the Orient Refinery and thus provide long-term security for the investment in the refinery.

OPR has four (4) subsidiaries including;

(i) OPR-Refining & Petrochemicals Plc,
(ii) OPR-E&P Company Limited,
(iii) OPR-Gas & Power Company Limited and
(iv) OPR-Infrastructure and Services Company Limited

OPR embarked on the development of oil and gas production from its oil blocks to secure feedstock for its refinery.

GTBank 728 x 90
Fidelity ads

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Tech News

TikTok’s owner seeks $60 billion valuation in US deal as Oracle, Walmart take stakes

Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global.

Published

on

Tiktok world’s most valuable startup is worth more than $100 billion

TikTok’s parent company, ByteDance is seeking a valuation of $60 billion for its video-sharing app, as Oracle Corp and Walmart Inc take stakes in the technology firm’s US operations to address the security concerns of the Trump administration.

According to a report from Bloomberg, Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global under an agreement that has gotten the approval of President Donald Trump.

The duo US firms would be paying a combined amount of $12 billion for their stakes if they reach an agreement with TikTok for the asking price of $60 billion.

The final valuation had not been set as the parties worked out the equity and measures for data security.

It was also stated that China is yet to approve the deal, although regulators are said to have expressed support for any transaction in which BtyeDance still maintains control of its valuable recommendation algorithms and other proprietary technology.

GTBank 728 x 90

It would be recalled that President Donald Trump, had threatened to ban the ByteDance owned TikTok, over national security concerns, but which some analysts see as part of the row between US and China. This pressured ByteDance into the deal as they looked to avoid the ban by the US government.

The US officials had expressed concern that the personal data of as many as 100 million Americans that use the app were being passed on to the Chinese government.

ByteDance turned down the proposal of a full buyout from Microsoft Corp but rather agreed to Oracle’s offer in which the Chinese parent company will still maintain a majority stake in the technology firm.

Trump told reporters on Saturday, ‘’I approve the deal in concept. If they get it done, that’s great. If they don’t, that’s ok too.’’

Trump’s new stance appears to conflict with his earlier executive order for China’s ByteDance to divest from the video-sharing app’s operations in the United States.

ByteDance is in a race to avoid a ban on TikTok after the US Commerce Department said on Friday that it would block new downloads and updates to the app from Sunday.

According to market researcher, CB Insights, ByteDance is the most valued private start-up in the world at $140 billion. Under the proposed deal, ByteDance may end up owning as much as 80% of TikTok Global, which include the app’s operations in the US and the rest of the world excluding China. Venture firms like Sequoia Capital and General Atlantic may also acquire equity in the new business.

Continue Reading

Business

Lagos to shut Ojota’s axis of main carriage way of Ikorodu road for 3 months

The Commissioner advised all motorists to utilize alternative routes suggested during the stipulated time.

Published

on

Lagos shuts Ketu-Mile 12 section of Ikorodu road, outlines alternative routes, Motorists to pay N1000 penalty at Lekki-Ikoyi Toll Plaza

The Lagos State Government has announced the shutdown of the entire length of the main carriageway of Ikorodu Road from Ojota interchange to Ojota Second Pedestrian Bridge from Monday, September 21, 2020, for a duration of 3 months.

This is development is part of the next phase ongoing rehabilitation work on Ikorodu Road which is set to commence from the Ojota Interchange to Ojota Second Pedestrian Bridge and the Service lane inbound Lagos.

While making the disclosure, the Lagos State Commissioner for Transportation, Dr Frederick Oladeinde, advised all motorists to utilize alternative routes suggested during the stipulated time for the repairs following the closure of the entire length of the main carriageway for reconstruction work.

Oladeinde in his statement said, “Vehicles coming from Maryland will be diverted at Odoyalaro into the Service lane and the BRT Corridor to link back the main carriageway at Ketu bus stop and Demurin junction respectively.’’

The commissioner gave an assurance that the Lagos State Traffic Management Authority (LASTMA) and other law enforcement agencies will be available to direct traffic for free vehicular movement during the entire period of construction work.

GTBank 728 x 90

While soliciting for the cooperation and support of residents and motorists that ply the axis, the Commissioner stated that the project is aimed at finding a lasting solution to the ever-busy road as well as to achieve the present administration’s traffic management and transportation policy objectives.

Continue Reading

Business

Petrol supply drops by over 23% due to decline in consumption

Consumption of petroleum products to decline to 27.2 billion litres in 2020.

Published

on

Subsidy and PIB, petrol price, PPPRA, We have sufficient PMS stock for 38 days- DPR 

The total volume of petrol supplied in Nigeria declined by 23.88% in July, when it fell from 1.34 billion litres in June 2020 to 1.02 billion litres.

This was disclosed by the Nigerian National Petroleum Corporation (NNPC), in its monthly performance data for July.

According to the report, the 1.02 billion litres translated to 32.95 million litres per day, down from 44.62 million litres per day in June, when 1.34 billion litres were supplied.

The performance data also stated that 0.95 billion litres (30.67 million litres/day) were supplied in May, and 0.94 billion litres (31.37 million litres/day) in April.

In March and February, the volume of petrol supplied stood at 1.73 billion (59.72 million litres/day), up from 1.20 billion litres in January (38.68 million litres/day)

GTBank 728 x 90

It stated, “The corporation has continued to diligently monitor the daily stock of Premium Motor Spirit, to achieve smooth distribution of petroleum products and zero fuel queue across the nation.”

Agusto projects further decline

Experts in Agusto & Co, in a report, have noted that the impact of the COVID-19 pandemic on economic activities in the country resulted in a decline in the consumption of petroleum products.

The report said, “Agusto & Co. expects the consumption of petroleum products, particularly PMS and Aviation Turbine Kerosene, to decline to 27.2 billion litres in 2020, given the severely restricted travel and transportation activities during the second and third quarters of the year.

“This is expected to translate to a decline in revenue to N4.3tn in 2020.”

Back story:

NNPC has, until recently, been the sole importer of petrol into the country for more than two years, after private oil marketers stopped importing the commodity, due to crude price fluctuations, among other issues.

The refineries, located in Port Harcourt, Kaduna and Warri, have a combined installed capacity of 445,000 barrels per day, but have continued to operate far below the installed capacity.

Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Patricia
Advertisement
FCMB ads
Advertisement
IZIKJON
Advertisement
Fidelity ads
Advertisement
first bank
Advertisement
bitad
Advertisement
deals book
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement