Way to go?
Thursday, March 10, 2016
Wednesday, March 9, 2016
Exploration Technics for non-technical professionals
This video gives a non-technical oil & gas professional a detailed look at Exploration techniques for the oil and gas industry
Tuesday, March 8, 2016
THROWBACK: Wale Tinubu Interview with The Oil Council
Wale, many thanks for joining us today, for our readers who might be unaware of all that Oando PLC does, can you give us a brief overview of the company?
Oando Plc is an integrated Pan-African energy company with a plethora of assets spanning the entire energy value chain from the Downstream to the Upstream.
In the downstream, we possess the country’s largest distribution network with over 400 retail outlets and operations in Nigeria, Ghana, Benin and Togo. 7 terminals, 3 aviation fuel depots, 3 blending plants, and 10 LPG filling plants within Nigeria, approximately 15% of the country’s fuel requirement is currently supplied by Oando. We also recently completed construction of a 1km subsea pipeline which will result in substantial savings on our shipping costs and demurrage.
In the midstream, our focus is on infrastructure development and captive power solution. We have an extensive footprint of gas and power projects in the country having constructed over 250km of pipelines in Lagos and South East Nigeria and a power generated capacity of 22.25MW.
Monday, March 7, 2016
Iraq is second-leading contributor to global liquids supply growth in 2015
Iraq was the second-leading contributor to the growth in global oil supply in 2015, behind only the United States. Crude oil production in Iraq, including fields in the Kurdistan Region of northern Iraq, averaged 4.0 million barrels per day (b/d) in 2015, almost 700,000 b/d above the 2014 level. Iraq is the second-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and accounted for about 75% of total OPEC production growth in 2015. Iraq's oil consumption decreased slightly in 2015, and as a result, all of the crude oil production increase was exported to international markets.
In southern Iraq, where almost 90% of the country's oil was produced in 2015, the upgrade of midstream infrastructure (pipeline pumping stations and storage facilities) and improvements to crude oil quality contributed to increased production.
In southern Iraq, where almost 90% of the country's oil was produced in 2015, the upgrade of midstream infrastructure (pipeline pumping stations and storage facilities) and improvements to crude oil quality contributed to increased production.
Sunday, March 6, 2016
Global politics and economics Oil price prognosis
Predicting the oil prices is a hundred million dollar question; in literal sense, it's a game of billions of dollars. This is one of the most difficult tasks, given that there're too many variables and moving parts on the economic, and more so, on the political fronts. Market punters are not willing to take a view for longer tenors and quote forward rates for larger volumes beyond 2/3 months. The recent phenomenon is surely more political than otherwise.
The similar situation was witnessed almost 30 years back, in 1985-86 when there was oversupply situation whilst demand, and hence prices, remained subdued. The meaningful difference this time round, however, is the enhanced world storage capacity availability - 85 million tons. Therefore, as a side note, the storage in the oil sector remains the single biggest business opportunity for the investors, particularly in Pakistan, as that would determine the energy security levels and dependence on the international oil supplies and the price volatility in future.
Whatever the case maybe, the fact of the matter is that the oil price movement is largely dependent on the global politics. This is also a fact that the US is driving the world politics, and their future actions will drive where the prices will settle. The dependence of USA on the Middle Eastern, more specifically Saudi, oil is minimal - merely 16%. This was all achieved in a very strategic way in the last decade by the administration of USA - imposing ban on exports, focusing on indigenous E&P activities (shale, case in point) and enhancing the storage capacities. Resultantly, in 2010-11, the total indigenous production over took the imports which stands at over 60% now.
This development helped USA in driving the
The similar situation was witnessed almost 30 years back, in 1985-86 when there was oversupply situation whilst demand, and hence prices, remained subdued. The meaningful difference this time round, however, is the enhanced world storage capacity availability - 85 million tons. Therefore, as a side note, the storage in the oil sector remains the single biggest business opportunity for the investors, particularly in Pakistan, as that would determine the energy security levels and dependence on the international oil supplies and the price volatility in future.
Whatever the case maybe, the fact of the matter is that the oil price movement is largely dependent on the global politics. This is also a fact that the US is driving the world politics, and their future actions will drive where the prices will settle. The dependence of USA on the Middle Eastern, more specifically Saudi, oil is minimal - merely 16%. This was all achieved in a very strategic way in the last decade by the administration of USA - imposing ban on exports, focusing on indigenous E&P activities (shale, case in point) and enhancing the storage capacities. Resultantly, in 2010-11, the total indigenous production over took the imports which stands at over 60% now.
This development helped USA in driving the
Sunday, October 25, 2015
Two Options for Converting NPDC’s Unincorporated Joint Ventures to Incorporated Joint Ventures
By Dr. Adeoye Adefulu
In a recent article,
it was announced that President Buhari had given the Nigerian Petroleum
Development Company ("NPDC") the approval to corporatise its joint
venture assets and convert them into Incorporated Joint Ventures
(“IJV”). The IJV structure has been floated at least since 2008 when the
first draft of the Petroleum Industry Bill
(“PIB”) was issued. That draft of the Bill mandated the formation of
IJVs with respect to joint ventures between the Nigerian National
Petroleum Corporation ("NNPC") and its partners (mostly international
oil companies). The IJV was seen as a solution to the perennial
difficulties faced by NNPC in financing its share of the joint venture
cash calls. This was based on the theory that an IJV was likely to be in
a better position to raise money from loan and equity markets. This
concept, loosely based on the NLNG model, was resisted by the joint
venture partners for a variety of reasons and was removed from
subsequent drafts of the PIB.
The recent proposal is a bit different. Firstly, it is targeted at
companies in joint ventures with NPDC, a subsidiary of NNPC. These
companies are typically Nigerian owned and/or Nigerian-led companies.
The assets recommended for conversion into IJV status are detailed in
the table below:Tuesday, October 20, 2015
Sustained Low Oil Prices: A blessing in disguise for Nigeria's Downstream Sector?
By Nkaepe Lisk-Carew
Nigeria's downstream sector has always sat in stark contrast to what had always been a thriving upstream oil and gas industry. The downstream sector was very much the sick child of the Nigerian oil and gas industry, defined and plagued by chronic fuel scarcity. During such times of scarcity, the petrol stations across the country would be littered with never ending queues of cars while jerry-can carrying touts held court in the thriving black market, the price of petrol often selling at five times the going rate.
Nigeria has always focused on the upstream sector. With good reason too. It was, quite frankly, the breadwinner of the family with energy sales accounting for up to 80% of the Nigerian government's revenue and 90% of the country's export. In the first quarter of 2014 alone (obviously before the oil price plummetted), Nigeria realized N2.432 trillion in oil revenue compared to N299.2 billion realized from revenues from non-oil sector sources. This has meant that the current low oil prices has hit Nigeria hard because the government's income is not diversified. Between June 2014 and January 2015, oil prices fell by nearly 50 percent, and the oil price has remained low since then despite one or two upticks. Oil exporters are said to be receiving about 54% less than what they received in 2013.
Nigeria has always focused on the upstream sector. With good reason too. It was, quite frankly, the breadwinner of the family with energy sales accounting for up to 80% of the Nigerian government's revenue and 90% of the country's export. In the first quarter of 2014 alone (obviously before the oil price plummetted), Nigeria realized N2.432 trillion in oil revenue compared to N299.2 billion realized from revenues from non-oil sector sources. This has meant that the current low oil prices has hit Nigeria hard because the government's income is not diversified. Between June 2014 and January 2015, oil prices fell by nearly 50 percent, and the oil price has remained low since then despite one or two upticks. Oil exporters are said to be receiving about 54% less than what they received in 2013.
In response to the continued low price of oil, Nigeria has had to revise its
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