Business News
NNPC moves to secure $2.5 billion Pipe-line financing
The Nigerian National Petroleum Corporation (NNPC) is about to secure a $2.5 billion Pipe-line Financing agreement from China in the next six months.
The Nigerian National Petroleum Corporation (NNPC) is about to secure a $2.5 billion Pipeline Financing agreement from China in the next six months.
The Financing Agreement was disclosed by NNPC Group Managing Director (GMD), Mr. Mele Kyari, while speaking on a monitored interview with Bloomberg Africa during the World Energy Conference in Abu Dabhi in Saudi Arabia on Monday.
The details: While speaking with Bloomberg, Kyari disclosed that although the financing agreement has been ongoing for a while, he noted that the NNPC and the Chinese counterpart are about to close the deal which will deliver about 2,600mw of power.
Kyari disclosed; “As you have mentioned, this project will deliver 2,600mw of power. That is quite significant in the context of our situation.”
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“Because financing is everything, what we did is to get a long conversation with the Chinese, quite a long conversation, we are very close to closure. In the first instance, we have secured 15% financing in our account, close to $430 million. We are expecting the closure of 85%, $2.5billion. Once that is secured, the pipelines will be delivered”
Asked when the financing is expected to close, Kyari replied that it will be concluded within the next six months.
The Pipe-line Project: Speaking on the transformation the pipeline contract means for the power system in Nigeria, Kyari stated that “this is adding 2,600mw of power from three capital power plants to be located in Kaduna, Abuja and Kano, and an adding additional capacity which will spur industrialization in these locations.”
On the side-line, Kyari stated that the delay in Nigeria’s deep offshore project was due to uncertainty in Nigeria’s fiscal environment and that is affecting disputes with the partners, which stalled the processes.
“Regarding the offshore, what we did this time is to have some kind of commercial closure, and we are very close to one of them which will come very soon, this is very important because it will open a new frontier of opportunity in the deep off-shore”.
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Commenting on the recent OPEC quota cut, the NNPC chief stated that Nigeria is ready to comply with the cut because production is quite predictable due to improvement recorded in recent times.
The Saudi’s attacks: Reacting to the recent Saudi’s attack, Kyari stated that a 50% cut in Saudi’s Oil supply is equivalent to 5million barrel and this is quite significant. According to Kyari, the cut could pose an enormous challenge in the oil market.
“50% or 5million barrels is quite significant. I know they are still trying to figure out exactly what happened. When disclosure is made on that, we will be in a position to comment fully. It can be a big challenge for the oil market.”
Energy
FG approves new board for NLNG, BGT
The change was necessary because the current board members had been in office since 2005.
Federal Government has approved the newly reconstituted boards of Nigeria Liquified Natural Gas(NLNG) and Bonny Gas Transport Limited (BGT).
This was disclosed in a statement issued by the Minister of State for Petroleum Resources, Chief Timipre Sylva, in Abuja on Monday.
According to him, the new board, which was approved by President Muhammadu Buhari, was necessary because the current board members had been in office since 2005.
He disclosed that the new board members for the NLNG include Dr Edmund Daukoru as Chaiman, Mr Henry lkem-Obih as a Member and Dr Rabiu Sulaiman as a Member.
Other Members include the Group Managing Director of the Nigerian National Corporation (NNPC), Malam Mele Kyari and the Permanent Secretary, Ministry of Petroleum Resources, Mr Bitrus Nabasu.
He also said that Daukoru was also approved as the President of the Board of BGT while Doyin Akinyanju and Abdul Abba are members.
The minister noted that Kyari and Nabasu were also members of the board.
“I will like to use this opportunity to thank the chairman and other outgoing board members of NLNG for steering the companies to record successes, particularly the Train 7 FID.
“l wish the exiting members good health and more successes in their future endeavors.
“To the incoming members of the board, I congratulate you on this appointment; your selection is based on your experience, integrity and expertise.
“I, therefore,urge you to bring all these to bear in the discharge of your responsibilities in line with the progressive agenda of Mr President,” he said.
The News Agency of Nigeria(NAN) reports that some of the new board members had worked in the industry in the past.
Daukoru was a former Minister of State for Energy and also Secretary General of the Organisation of the Petroleum Exporting Countries in 2006.
He became the Amayanabo, or traditional ruler, of Nembe Kingdom in 2008.
Also, Ikem-Obih was a former Chief Operating Officer, Downstream of the NNPC and Rabiu a former Group Executive Director at the corporation.
Hospitality & Travel
Passengers can now arrive 90 minutes before departure for domestic flights – FG
The Federal Government has announced the reduction of arrival time for passengers from three hours to one hour and a half before departure for domestic flights.
This was disclosed in a tweet post by the Minister for Aviation, Hadi Sirika, through his Twitter handle on Monday, July 13, 2020.
The minister said that the decision was arrived at after they have reviewed passenger facilitation at the airport while noting that passengers should check-in online.
In the tweet post, Sirika said, ‘’My colleagues and I have reviewed passenger facilitation at our airports, consequently I am happy to announce that, henceforth travellers are to arrive one hour and half before their departure time for domestic flights. Travellers are advised to check-in online, please.’’
My colleagues & I have reviewed passenger facilitation at our airports, consequently I am happy to announce that, henceforth travelers are to arrive one hour and a half before their departure time for domestic flights. Travelers are advised to check in online, please 🙏🏽🇳🇬🇳🇬🇳🇬🙏🏽
— Hadi Sirika (@hadisirika) July 13, 2020
It can be recalled that the Federal Airports Authority of Nigeria (FAAN) had earlier in June issued flight resumption protocol for both international and local passengers across the country, advising passengers to arrive at the airport three hours before their time due to the new COVID-19 safety checks for domestic flight operations and five hours for international flight operations.
Economy & Politics
Seyi Makinde Proposes N3 billion investment plan for water supply
The local governments in Oyo are advised to submit a list of 10 faulty boreholes in the LG.
The Governor of Oyo State, Seyi Makinde announced the proposal of a N3 billion investment plan dedicated to water supply in rural and urban areas of the state.
Speaking through the Chairman of Rural Water Supply and Sanitation Agency (RUWASSA), Mr. Najeem Omirinde in Ibadan on Monday, he added that N500 million of the N3 billion would be used for repairing broken and faulty state-owned boreholes.
All Chairmen of each of the Local Governments in Oyo are advised to submit a list of 10 faulty boreholes in the Local governments.
The Oyo State governor also ordered that all new boreholes must be compliant with solar-powered pumps, to enable their longevity and save costs.
Urging residents to patronize the agency if they need to dig up boreholes for water, citing that it would be cheaper if done through the state agency than with private drilling companies.
Minister of Finance, Zainab Ahmed stated last year that Nigeria needs an estimated N36 trillion annually for the next 30 years to solve Nigeria’s infrastructure problem. The investment, although a tiny fraction of what Nigeria needs is a bold step by the Oyo State government.
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