IMPROVING ENERGY ACCESS: Costs and Benefits of Solar PV in Nigeria

By Muhammad Modibbo

Nigeria, a country of over 154 million people is blessed with abundant human and natural resources. It has an estimated 37.2 billion barrels of proven oil reserves and 185 trillion cubic feet (tcf) of proven natural gas reserves as of January 2010, making it the eighth largest natural gas reserve holder in the world, the largest in Africa and the tenth oil reserve holder in the world. Nigeria’s economy is heavily dependent on the oil sector which accounts for over 95% of export earnings and about 65% of government revenues.

However, it is unfortunate that only about 40% of the Nigerian population have access to

EVENT ANNOUNCEMENT: The Lagos Oil Club Q & A with Tonye Cole, CEO Sahara Group

Our Guest Speaker for the FEBRUARY Edition of The Lagos Oil Club Q+A Sessions is Mr. Tonye Cole, Managing Director/CEO, Sahara Group.

Tonye Cole co-founded the Sahara Group in 1996 and within a decade, has led the Sahara Group from a company whose core business at the time was oil trading to become established as one of Nigeria’s leading Oil and Gas Company with business activities that span through the entire energy value chain. 

The company also has a growing portfolio, which includes

TOP NEWS PICK : JANUARY 20, 2012

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BP sees growth in non-fossil fuel use 

While global energy demand is expected to grow by almost 40% by 2030, non-fossil fuels will account for one-third of this growth, according to UK-based oil and gas giant BP. Nuclear energy will continue to play a significant role, with the Asia Pacific region seeing the greatest growth in its use | World Nuclear News

Crude oil holds above $100 

NEW YORK, Jan. 19 (UPI) -- Crude oil prices held above $100 per barrel in New York Thursday after the American Petroleum Institute said U.S. inventories fell last week | UPI.com

Global oil and gas M&A faces tough 2012 

LONDON, Jan 19 (Reuters) - Oil and gas company mergers and acquisitions rose in number but fell in total value in 2011 due to a decline in transactions topping $1 billon, according to an analysis of activity by global law firm Ernst & Young | Reuters

First oil for M&P at Sabanero 

Maurel & Prom said on Thursday that production is online at three wells in Colombia’s Sabanero field | Upstreamonline

BP may double oil spill pay-out 

BP may agree to pay up to

WEEKEND DIGEST-->>> 14-15 JANUARY 2012

The Weekly Digest brings you the highlights of 'The Mix: Oil and Water!' for the past week.

Catch up. Read your favourite Articles and Posts- again and again...and some more!!!

**CLICK ON THE ARTICLES TO READ**

Top 5 Posts Read- This Week:

TAX ISSUES IN PETROLEUM PRODUCT PRICING IN NIGERIA

BRITISH PETROLEUM (BP): CORPORATE GIANT IN A CORPORATE MESS?

STAKEHOLDER ANALYSIS: TOWARDS PRACTICAL CONTENT & SUPPLY CHAIN...

EXPLAINING THE WAR ON SUBSIDY: NIGERIA'S CBN GOVERNOR

INDONESIA 2008 OIL & GAS EXPERIENCE: LESSONS FOR...

Top 5 Posts Read- All Time:

1- British Petroleum (BP): Corporate Giant in a Giant Mess?

2- BP's Competitive Strategy: Leadership at what cost?

3- European Gas Market: Pipeline Gas VS LNG

INDONESIA 2008 OIL & GAS EXPERIENCE: Lessons for other Markets in 2012

By Andrew Steele

The Asian Financial Crisis of the late 1990s dealt a body blow to Indonesia’s economy, but ten years later both long-time observers and champions of the underperforming country are again optimistic. 

Strategically positioned between Australia to the south and China and East Asia to the north, the country’s geographic location affords multiple opportunities to access lucrative markets in both directions. Sizeable proven oil and gas reserves and a robust labor force coupled with greater political stability and legal certainty than in the past add to Indonesia’s potential to sustain higher levels of growth. 

TAX ISSUES IN PETROLEUM PRODUCT PRICING IN NIGERIA

By Debo Alonge

Pricing Trend in Nigeria

Rather than taxing petroleum products, Nigeria currently has a subsidization policy on petroleum products evidenced by the fact that the current prices of petroleum products are far lower than the international prices (Hossain, 2003).

There are basically two types of fuel subsidies:

(i) Direct subsidies – here the retail price of fuel is cheaper compared to normal industrial commodities

(ii) Indirect subsidies – this includes exemption from sales tax / VAT or via lower-cost domestic fuel production, make the retail price of the fuel cheaper than in countries which depend on the world market.

Subsidizing fuels has high costs. Moreover universal price subsidies almost always benefit high-income households more than the poor, because richer households consume more energy. It also hinders efficient reforms of the downstream petroleum sector. There is an indirect cost arising from higher interest rate as government borrows to finance some of the fiscal gap created by large subsidy.

CHINA ELECTRICITY ACCESS MODEL: Rural Electrification in Context

By Sanusi M. Ohiare and Subhes C. Bhattacharyya

The economic and infrastructural disparities between the rural and urban communities of most developing countries in general and in terms of energy access in particular are quite glaring. China presents a good example of a developing country that has successfully embarked on rural electrification and energy projects over the last few decades and achieved a great feat of almost 100% electrification rate (IEA 2009). The purpose of this analysis is to find out how China has achieved this feat; how China’s rural energy projects were financed and whether China provides lessons for other countries to follow.

TOP NEWS PICK : JANUARY 10, 2012

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UK trio 'face Arctic grilling' 

BP, Shell and Cairn Energy are believed to be on the draft list of companies to be called to give evidence to the UK Parliament’s environmental audit committee in the spring as part of its Protecting the Arctic inquiry that was announced on Sunday, according to UK newspaper The Telegraph | Upstream Online

Malaysian's set to boost renewable energy five-fold 

The Energy Commission of Malaysia has announced plans to boost the share of renewable electricity to 5.5 percent, compared with less than one percent currently, off the back of the passing of the Renewable Energy and Sustainable Development Authority Acts in April 2011 | Renewable Energy Magazine

Thai energy demand seen up almost 5 pct in 2012-ministry 

Jan 9 (Reuters) - Thailand's energy demand is expected to rise almost 5 percent in 2012, driven by economic growth and restoration work after last year's flooding plus work on flood defence systems, the Energy Policy and Planning Office of the Ministry of Energy said on Monday | Reuters

Israel's Dalia to buy $5 bln in natgas from Tamar 

TEL AVIV Jan 9 (Reuters) - The partners developing the Tamar field off Israel's Mediterranean coast reached an agreement to sell Dalia Power Energies up to 1.38 billion cubic meters (bcm) of natural gas annually over 17 years for the operation of a private power plant | Reuters

Israel puts navy in charge of protecting offshore gas infrastructure 

The Israel Navy has been put in charge of protecting the offshore rigs and natural gas infrastructure located off the country's Mediterranean coast, Israeli government sources said Monday | Platts

Shell to build large oil storage and transportation facility in Tianjin 

Royal Dutch Shell's Chinese joint-venture are to build a large oil storage and transportation facility in the northern port city of Tianjin. This is expected to further expand the global energy tycoon's business in China, local authorities said today (Monday 9th January) | Oilvoice

India considers rupee for Iranian oil 

NEW DELHI, Jan. 9 (UPI) -- New Delhi said it may want to pay for Iranian crude oil in

STATE PARTICIPATION IN PETROLEUM OPERATIONS

By Blessing James Laburta

State Participation (SP) has been defined as ‘’the commercial involvement of a State or its designated representative (which may be the national state oil company or any other state-owned enterprise used for the purpose) in the exploration and exploitation of petroleum resources’’ . SP in petroleum operations was pioneered in the 1920s and 1930s with the formation of the NOCs of Argentina (Yacimientos Petroliferos Fiscales (YPF)) and Mexico (Petroleos Mexicanos (PEMEX)) . SP however gained momentum in the 1970s with the rise in nationalism and the formation of the Organization of Petroleum Exporting Countries (OPEC) . OPEC succeeded in encouraging

EXPLAINING THE WAR ON OIL SUBSIDY: Nigeria's CBN Governor

In an e mail sent to Street Journal by the Governor of the Central Bank, Sanusi Lamido Sanusi, the nation’s number one banker took time to explain his role and why he started the war against subsidies. He also explained the rot in the petroleum sector and the frauds perpetrated in order to benefit from fuel subsidy. Below are excerpts from the mail:

“If you will patiently read this mail to the end you will understand my position. I won’t be able to repeat everything I have said over the past few years on fuel subsidy, but in summary; Fraud like theft thrives not only because of the existence of greed and benefit but of opportunity. Place yourself in the shoes of the average Nigerian “businessman” or “entrepreneur”-polite euphemisms for rent seeking parasites. You establish an elcee for importing 20,000MT of PMS and the PPPRA says this is at a landed cost of N145 for example per litre. So you know that for every litre in that vessel you will get at least N85 as subsidy. Now you have a number of “possibilities”:

EVENT ANNOUNCEMENT: 90 Mins Speaker Series--> Deji Alli

Interact with Deji Alli as he shares his business and life experiences.

Deji has degrees in Accounting and Finance from the University of Lagos. He is an Associate member of the Chartered Institute of Management Accountants, UK.  

Deji Alli is the Managing Director of ARM Investment Managers, which he founded in 1994. ARM is a diversified and integrated non-bank financial services institution that currently manages total assets of over N150 billion.