The report that the Nigerian Government revealed that 13 out of the 30 marginal fields awarded since 1999 were not producing crude oil, as only 17 of the fields were currently meeting the target of crude oil production is one of the leading stories in Nigerian newspapers on Wednesday.
The Punch reports that the Federal Government on Tuesday revealed that 13 out of the 30 marginal fields awarded since 1999 were not producing crude oil, as only 17 of the fields were currently meeting the target of crude oil production.
It also awarded 57 marginal fields to about 49 new investors in Abuja, adding that a total of N202.91bn was raked in by the government from the just concluded 2020 marginal field bid round.
The government disclosed this during the issuance of the Petroleum Prospecting Licence to the successful awardees in the 2020 marginal field bid round. This, it said, was pursuant to the provisions of the Petroleum Industry Act 2021.
This came as successful awardees, such as Matrix Energy Group, Petrogas Energy, among others, promised to begin oil search from the fields in earnest to boost the country’s crude oil production.
In his address at the event, the Chief Executive Officer, Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, stated that one of the major tasks inherited by the NUPRC upon its inauguration last year, was the need to conclude the 2020 bid round.
“Consequently, we pursued the matter frontally and are delighted to inform you that the exercise which commenced in June 2020 is being concluded today,” he stated.
The newspaper says that the immediate past Chief Justice of Nigeria, Ibrahim Muhammad, is expected to get a N2.5bn severance package from the Federal Government.
Muhammad’s resignation on health grounds was announced on Monday, less than a week after the 14 Supreme Court Justices accused him of financial malfeasance and maladministration.
Following the development, President Muhammadu Buhari on Monday swore in Justice Olukayode Ariwoola, the next most senior Justice as the acting CJN.
As part of the package for the retired chief justice put together by the National Judicial Council, a mansion will be built for him in Abuja or any city of his choosing with a lump sum for furnishing.
This is in addition to a gratuity that is 300 per cent of his annual basic salary of N3.36m as well as a pension for life.
The Guardian reports that Nigeria is gradually inching towards a financial ‘blockade’ at the international financial market, as its working relationship with international development and funding partners, including the World Bank and the International Monetary Fund (IMF), deteriorates to its worst level in recent years.
This comes with dire consequences for the prospect of raising cheap funds. Already, the yields of Nigeria’s Eurobond have increased significantly, from an average of 6.5 per cent at the start of the year to about 12.5 per cent this month, about a 100 per cent rise in six months.
Several external factors such as the global hike in interest rates and high inflation rate have significant impacts on the cost of borrowing from the global market, a reason the United States’ 10-year bond has also increased from 1.75 per cent in January to over three per cent.
But the country is wallowing in a web of self-inflicted missteps with some experts arguing that its rising risks and deteriorating sovereign rating would have contributed to the sudden sharp rise in the country’s already under-priced bonds.
Last month, JP Morgan, an American leading investment bank, delisted Nigeria from the class of emerging market sovereign recommendations that investors should be ‘overweight’ in.
“Nigeria’s fiscal woes amid a worsening global risks backdrop have raised market concerns despite a positive oil environment,” the bank said while it upgraded Serbia and Uzbekistan for their low risks.
JP Morgan’s decision is interpreted as a grave red light with negative implications on the country’s investment outlook and credit worthiness. Other credit rating agencies, including Fitch Ratings, have raised countless questions about the country’s competitiveness while calling for reforms, suggestions often rebuffed by the government.
The newspaper says that the European Union (EU) has stated that it would be prioritising Nigeria, Mozambique, Angola and Senegal in its bid to fast-tracking energy transition into renewables on the continent.
The EU Ambassador to Nigeria, Samuela Isopi, at a press conference to announce its eight edition of the EU business forum scheduled to hold on the 30th of June to 1st July 2022, explained that under its European External Strategy (EES) launched recently, it is targeting Nigeria and three countries by diversifying suppliers and fast-tracking energy transition into renewables.
Isopi maintained that its member states are already reaching out to these countries to fast-track the energy transition process.
She, however, tasked the Nigerian government to address its infrastructure and security challenges to boost gas export to Europe.
“We think there is a huge opportunity for Nigeria. The current international situation is creating a huge opportunity for Nigeria, but we need to address the challenges,” she advised.
According to her, the EU bloc is by far the largest trading partner of Nigeria with about €28 billion in 2021, which she said is in favour of Nigeria with a balance of trade of €6 billion.
She said the oil and gas sector represents the bulk of the trade adding that Europe accounts for 20 per cent of Nigeria’s trade with the rest of the world.
“This is an agenda that we are trying to develop further. Discussions are ongoing between the Nigerian government and the European Union on how to deepen economic relations,” she added.
The Sun reports that the Group Managing Director of the Nigerian National Petroleum Company (NNPC) Ltd, Mr. Mele Kele Kyari, says there is no single refinery working in the country at the moment.
Kyari disclosed this when he appeared before the House of Representatives Joint Committee on Petroleum Resources (Downstream) on Tuesday in Abuja.
He told the committee investigating the rising prices of diesel and cooking gas that the country’s refineries were not working at the moment, as the situation remains regretable, stressing that the NNPC was doing everything possible to bring them back to life.
According to him, the refineries will not come back tomorrow, there is a process going on. “We have decided to do a quick fix for Warri refinery.” He said that no one could guarantee the stability of petroleum supply, with excess volume in the reserves of consumers and producers of the product.
“The world has never seen this kind of uncertainty, today countries are stockpiling products. Shortly before COVID-19, the world was already facing shortfall of 3 million barrel of supply of oil,” he said.
Kyari said that there had been no effort to manage the energy crisis across the world, stressing that to guarantee energy security means you just make product available at anytime and at any cost.”
The GMD also disclosed that over 200 illegal refineries were being operated across the country, stressing that the solution was to restore crude oil production, with the massive intervention ongoing and by the end of July “we will restore production to a level that is reasonable.
“Many European countries are asking for gas rationing they are asking people to alternate their air conditioners. “Today, countries are toying with subsidy because prices are so high because they don’t think they can manage inflation associated with it.”
GIK/APA