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Energy

Nigeria’s crude oil export earnings rebounded by 116% in November – OPEC

OPEC said Nigeria’s crude oil export earnings, which had dropped by 77% between January and April 2020, rebounded by 116% in November.

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Nigeria's crude oil export earnings rebounded by 116% in November - OPEC

The Federal Government of Nigeria’s crude oil export earnings rebounded by 116% in November.

The Secretary-General of the Organisation of Petroleum Exporting countries (OPEC), Mohammad Barkindo, disclosed this at the Virtual 19th Nigeria Oil and Gas Conference on Tuesday.

The conference themed: “Fortifying the Nigerian Oil and Gas for Economic Stability and Growth,” elected the Secretary General as its Honorary Chairman.

READ: NDIC set to pay insured depositors of liquidated Femaz Microfinance Bank

What they are saying

Commenting on the development, Barkindo said the Nigerian government should be commended for the proactive measures that facilitated the rebound of its crude oil export earnings, when compared to the April 2020 levels. He said:

  • “The government should be applauded for quick and proactive actions. The Nigerian Crude oil export earnings plunged by 77% within three months between January and April 2020, but since then, they have gradually improved and rebounded by 116 per cent in November compared to April 2020 level.
  • “All of us in OPEC family know the enormous debt of gratitude we owe President Buhari for the pivotal role he played in the Declaration of Cooperation (DoC) process between OPEC and non- OPEC producing countries; Particularly, his intervention at the highest level to secure decisions of the 10th extraordinary OPEC and non-OPEC meeting in April 2020; citing that these decisions were taken in response to the unprecedented demand slump resulting from Coronavirus pandemic.”

READ: Abia State proposes N131.8 billion for 2021 fiscal year

On the global energy mix, the Secretary-General noted:

  • “The petroleum sector will remain the secure base in meeting global energy needs. We expect oil to retain the largest share of the energy mix throughout the forecast period, providing nearly 28% of global requirements in 2045.”

READ: Naira under pressure as Nigeria records poor export earnings

Barkindo concluded by echoing the importance of stimulating investment in the oil sector in the interest of future energy security and sustainable supply.

  • “Our current assessments show that upstream capital expenditure could fall by more than 30% this year, beyond the losses experienced in 2015 and 2016. OPEC’s World Oil Outlook shows that $12 trillion will be needed between now and 2045 in the upstream, midstream and downstream. We are alarmed at the pull back of capital from the industry.”

READ: OFFICIAL: Nigeria’s oil sector accounts for 93.8% of export revenue

What this means

  • The 116% increase in Nigerian crude oil export earnings in November implies increased revenue for the government towards fulfilling its mandates.
  • This is also a good time for the increase considering that the price of Crude oil has increased considerably in recent weeks. Presently, WTI Crude oil sells for $45.66 per barrel, while Brent crude sells for $48.98 per barrel; compared with the average price of $39.79 and $41.49 between January and October for WTI Crude oil and Brent Crude oil respectively.
  • Thus, the increase in oil prices would also improve the monthly federal allocations to states.

READ: NNPC to extend trade relations with Turkey

What you should know

  • OPEC is a permanent intergovernmental organization of 13 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries.
  • OPEC was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They became the founding members of the organization.
  • These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018).
  • Ecuador withdrew its membership of OPEC effective 1 January 2020. Indonesia suspended its membership in November 2016. Qatar terminated its membership on 1 January 2019.
  • This means that, currently, the Organization has a total of 13 Member Countries.
  • Of the 13 members, Nigeria recorded the 5th highest crude oil production in October according to OPEC’s direct communication data.
  • The OPEC Secretariat is the executive organ of the Organization of the Petroleum Exporting Countries (OPEC). Located in Vienna, it also functions as the Headquarters of the Organization, in accordance with the provisions of the OPEC statute.

READ: Cocoa prices melt lower as COVID-19 weakens demand 

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Adeyemi holds a PhD in Accounting Sciences. He has worked in the Educational Sector and as an Independent Consultant.

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Energy

Siemens Power deal: FG to collaborate with Egypt

Nigeria is set to collaborate with Egypt towards a total overhaul of the power grid and distribution systems.

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FG set to create at least 5 million jobs for youths in the power sector – Minister of Power , Consortium of Western investors to inject upwards of $5 billion in Nigeria's renewable energy sector, Power: Nigeria's deal with Siemens - the birth of a new era?

President Muhammadu Buhari ordered the Ministry of Power to work with the Egyptian government on an effective rollout of the  Presidential Power Initiative with German engineering company Siemens AG.

This was disclosed by Mr. Aaron Artimas, Special Adviser, Media and Communication to the Minister of Power,  in a statement in Abuja on Monday.

The Special Adviser revealed that the Minister of Power, Mr. Sale Mamman, disclosed this in a meeting with the  Egyptian Ambassador to Nigeria, Mr. Ihab Awad, citing that the FG wants to learn from Egypt’s successful implementation of a power upgrade with Siemens AG.

READ: Plan to overhaul Nigeria’s Power grid attracts investors – Siemens

“The President had reasoned that obtaining more information from Egypt will enable Nigeria to maximize our agreement with Siemens, towards the total overhaul of our power grid and distribution systems,” he said.

The Power Minister said that the FG would leverage on Egypt’s rollout programme also and added that both countries would also collaborate on renewable energy, and improving other sectors of the electricity value chain.

What you should know 

  • Nairametrics reported that the FG  and Siemens AG have signed a contract for the pre-engineering phase of the Presidential Power Initiative.
  • In 2018, Siemens, Elsewedy Electric, and Orascom Construction launched a 14.4 GW  project under 30 months including the largest combined cycle megaprojects in Beni Suef, Egypt.

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Energy

TCN hits power transmission of 5,615.40MW

The TCN has broken its own transmission record twice in the space of a week.

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TCN MD Abdulaziz, four other directors receive appointment letters

The Transmission Company of Nigeria (TCN) announced that it hit another record milestone on transmission, as it recorded a national peak of 5,615.40MW.

This was disclosed in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN, on Tuesday in Lagos, she added that the TCN hit the record on the 28th of February.

The TCN added that the transmission was distributed at a frequency of 50.20Hz by 9.30 pm of the same day, as the TCN has broken its own transmission record twice in the space of a week.

READ: TCN: Minister of Power shares FG’s plans with new management

“Also, on Feb.26, 2021, TCN equally transmitted a new Maximum Daily Energy of 116,891 14MWH which is higher than the previous value of 116,121 42MWH achieved on Feb. 25, 2021 by 769.72MWH,” the TCN said.

Mr Sule Abdulaziz, Managing Director, TCN, said the company would remain focused on its goal to complete ongoing projects and undertake new ones as it strives to put in place a robust transmission and, despite challenges posed by vandalism and insecurity.

What you should know 

  • Nairametrics reported on March 1st that The Transmission Company of Nigeria announced it has broken its transmission record once again, after hitting a record of 5,584.40 MW.

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