The Federal Government through the Nigeria Electricity Liability Management Company ( NELMCO), announced plans to sell off real estate belonging to the defunct PHCN.
NELMCO disclosed earlier last week the first batch of properties to be sold, including older NEPA/PHCN offices, guest houses and other properties owned by PHCN before the Power Privatization scheme of 2013.
NELMCO, incorporated on August 21st, 2006 as a limited liability company was created during the electricity power sector reform with a very specialized role to play. NELMCO was designated to assume responsibility for all of the PHCN liabilities leading up to the November 1, 2013 handover of the companies. As well as the management of the non-core assets of the companies, prior to disposition of same.
One of the objectives of NELMCO is to “ sell, let, mortgage, dispose of, deal in any of the property or non-core assets of the company as may be expedient with a view to promoting its objects”.
In July, NELMCO Managing Director, Adebayo Fagbemi, disclosed during a visit by the Senate Committee on Power to Abuja Electricity Distribution Company head office, that the NELMCO would sell 216 former PHCN properties in phases.
Shell to cut 9,000 jobs globally due to oil price crash as it shifts to clean energy
The Royal Dutch Shell Plc has revealed plans to cut thousands of jobs globally, including in Nigeria.
Anglo-Dutch giant, Royal Dutch Shell Plc, has concluded plans to cut as much as 9,000 jobs globally, including Nigeria, as part of its cost-cutting measure due to the crude oil crash and the oil firm’s move to overhaul its business to embrace clean energy.
The oil and gas giant, which employed 83,000 workers at the end of last year, expects to save up to $2.5bn annually from the cost-cutting plan that includes shedding between 7,000 and 9,000 employees before the end of 2022. This represents as much as 11% of the workforce that includes about 1,500 people taking voluntary redundancy this year.
The global staff-cut comes as Europe’s largest oil company prepares to invest more in a low-carbon energy future while battling the market fallout of the coronavirus pandemic, which has slashed demand for oil.
The Chief Executive Officer of Shell, Ben van Beurden, in a statement said, “We have to be a simpler, more streamlined, more competitive organization. In many places, we have too many layers in the company: too many levels between me, as the CEO, and the operators and technicians at our locations.”
The Shell boss admitted that although this is an extremely tough process as it is painful knowing some staff have to go, however, they are doing this because they have to and it is the right thing to do for the future of the company.
According to its statement, Shell plans to refocus its refining business, eventually cutting its number of plants to fewer than 10, from the present 15. Refining margins have been much lower this quarter than last quarter, and oil-product sales have shrunk to around 4 million to 5 million barrels a day from 6.7 million a year earlier.
While the Anglo-Dutch major didn’t provide a full breakdown of the job losses and plans to save $2.5 billion, a spokesperson said that positions in the top three layers of the company would be reduced by one fifth.
The Shell boss disclosed that layers of management would be cut as they have looked closely at how they are organized and feel that, in many places, there are too many layers in the company. He said that there are many levels between himself, as the CEO, and the operators and technicians at our locations.
He also pointed out that other savings are likely to come from trends that have emerged during the coronavirus pandemic; including virtual working, less travel and a lower reliance on contractors.
The company said that the third quarter oil-product trading results is expected to fall short of the historical average and will be significantly lower than in the second quarter. That shows the trading bonanza that saved Shell’s last set of results won’t be repeated. Its full third-quarter financials, scheduled for Oct. 29, will include impairment charges of $1 billion to $1.5 billion.
Shell’s B shares traded down 1.7% at 940.2 pence as of 4:36 p.m. local time.
Barclays Plc analyst, Lydia Rainforth wrote on a research note, “The transformation to a leaner and lower-carbon organization is the right one for Shell longer-term. But with the macro environment still challenging, this may take some time to reflect in the share price.”
The crash in oil prices which was triggered by the coronavirus pandemic has seen Shell’s peers also take drastic steps to shore up the balance sheet. BP Plc said in June it planned to cut 10,000 jobs, Chevron Corp. intends to trim 10% to 15% of its global workforce, while Exxon Mobil Corp. is reviewing staffing country by country.
Shell began the process in May when Van Beurden told staff in a memo that it was reshaping the company to make it slimmer and more resilient and that there could be redundancies in the second half of the year, according to people with knowledge of the matter.
The reorganization and cost-cutting measure are also designed to further Shell’s expanded green ambitions. The company said in April it planned to eliminate all net emissions from its own operations and the bulk of greenhouse gases from the fuel it sells to its customers by 2050. Shell also said that ultimately, it would only do business with emission-free companies.
BREAKING: It makes no sense for Petrol to be cheaper in Nigeria than Saudi Arabia – President Buhari
Nigeria sells petrol at N161 per litre when the same is sold at higher in Saudi Arabia, Egypt, Ghana, Chad, and Republic of Benin.
The Federal Government has said that it does not make sense for oil to be cheaper in Nigeria than Saudi Arabia, Egypt, Niger Republic and Republic of Benin, other oil-producing nations.
This was disclosed by President Muhammadu Buhari during his Diamond Jubilee Presidential Broadcast to mark the nation’s 60th independence anniversary on Thursday.
He said, “We sell petrol at N161 per litre when same is sold at N168/litre in Saudi Arabia, N211/litre in Egypt, N362/litre in Ghana, N362 in Chad, and N346 in Niger Republic among others.
“It does not make sense for petrol to be cheaper in Nigeria than Saudi Arabia.
“Fellow Nigerians, to achieve the great country we desire, we need to solidify our strength, increase our commitment and encourage ourselves to do that which is right and proper even when no one is watching.”
New PIB amends royalties by oil firms as Sylva clarifies position on scrapping of NNPC
The Minister has clarified that the new PIB seeks to commercialize the NNPC rather than scrap it.
The long-awaited new Petroleum Industry Bill (PIB), which was just submitted by President Muhammadu Buhari to the National Assembly, has taken steps to amend changes to deep water royalties made last year.
This is as the Minister of State for Petroleum Resources, Timipre Sylva, has clarified that the new PIB seeks to commercialize the Nigerian National Petroleum Corporation (NNPC) rather than scrap it.
According to Reuters, while confirming the receipt of the Petroleum Industry Bill (PIB) from the President, the Senate President, Ahmed Lawan, said that it would be officially presented on the floor of the 2 chambers of the National Assembly on Tuesday and would get quick consideration.
In addition to the earlier reported creation of a new company, Nigerian National Petroleum Company Limited, to take over the assets and liabilities of NNPC and the establishment of some new regulatory bodies, a section of the bill proposes an amendment to controversial changes to deep offshore royalties made late last year. This involves reducing the royalty that oil companies pay the Federal Government for offshore fields producing less than 15,000 barrels per day from 10% to 7.5%.
It would change a price-based royalty too so that it kicked in when oil prices climbed above $50 per barrel, rather than the initial $35.
It would also codify in law that companies cannot deduct gas flaring penalties from taxes, a practice that was the subject of a court case.
Sylva made the disclosure during an interaction with journalists at the National Assembly complex after an interactive session with the leadership of the assembly.
Sylva said, “We have heard so much noise about NNPC being scrapped but that is not being envisaged by the bill at all. NNPC will not be scrapped but commercialized in line with deregulation move being made across all the streams in the sector comprising of upstream, downstream and midstream. We have said that NNPC will be commercialized.
“But if you are talking about transforming the industry, the only new thing that we are introducing is the development of the midstream, that is the pipeline sector. So we have provided robustly for the growth of the midstream sector. Through commercialization, the required competitiveness in the sector will be achieved.”
Sylva also pointed out that the host communities would have the best deal from the bill.
Nairametrics had earlier reported the scrapping of the Petroleum Product Pricing Regulatory Agency (PPPRA) and the Petroleum Equalization Fund (PEF) in the proposed new bill, in addition to the creation of a new entity, NNPC Ltd.
The Federal Government is expected to pay cash for shares of the company, which would operate as a commercial entity without access to state funds.
The changes could make it easier for the struggling company to raise funds. However, the bill does not require the government to sell shares in the company and, unlike previous reform proposals, does not set a deadline for privatization to be completed.