VenturesNow

Nigeria cuts supply to border towns amidst oil smuggling crisis

Published

4 months ago

July 8, 2024

To curb the illegal export of Premium Motor Spirit, also known as petrol, from Nigeria to its neighbours, the Nigerian government has sealed three filling stations in border towns and detained five fuel trucks.

Additionally, the fuel supply to various border areas has decreased from 32 million litres per day to roughly 25 million litres in just two months as a result of the government’s ongoing anti-smuggling efforts through the Nigeria Customs Service.

This suggests that throughout the time, about 420 million litres of PMS, worth N294 billion (based on an average price of N700 per litre), did not reach the border states. The Nigerian National Petroleum Company Limited verified the approximately 21.86% reduction in PMS evacuation to border states.

The Nigerian Customs Service’s National Public Relations Officer, Abdullahi Maiwada, informed our correspondent that the sealed filling stations and impounded petroleum tankers had been turned over to the Nigerian Midstream and Downstream Petroleum Regulatory Authority for additional inquiries.

Additionally, he refuted reports that 1,800 gas stations in the North had closed in opposition to the NCS’s ongoing anti-smuggling efforts.

Maiwada responded, “The NCS is still carrying out its anti-smuggling operation effectively and continuously,” when asked if the service was still fighting gasoline smuggling. On the grounds of possible product diversion that could lead to eventual smuggling out of the nation, five fuel tankers were arrested.

Chief Superintendent of Customs Maiwada refuted statements made by IPMAN that the trucks were turned over to the downstream regulator for the oil industry and that the tankers had been given to members of the Independent Petroleum Marketers Association of Nigeria.

“The detained fuel tankers were not released to IPMAN under pressure. However, the trucks were handed over to NMDPRA for continued investigation with the intervention of the Adamawa State government, as the offence committed was centred on fuel diversion,” he stated.

Regarding the sealed filling stations, he declared, “In Adamawa State, three filling stations have been sealed but not closed. However the three sealed filling stations were also turned over to the NMDPRA so they could do additional research.

“The NMDPRA is expected to transmit its findings and recommendations to the Nigeria Customs Service through the national coordinator to the headquarters.”

Following Nigeria’s elimination of petrol subsidies last year, gas prices increased last year in neighbouring West African countries, rising by more than 40% in all markets assessed.

According to Globalpetrolprices, a think tank that tracks gasoline costs and energy prices, Cameroon, Togo, Benin, and Guinea are among the nations most affected by this trend.

VenturesNow

Canada’s First Quantum in pursuit of partners for Zambian assets

Published

7 hours ago

October 24, 2024

Ifeoluwa Dada

Without naming the companies, First Quantum Minerals, a Canadian miner, stated on Wednesday that it is in discussions with possible partners for its Zambian properties.

According to three people familiar with the matter, Reuters said last week that Saudi Arabia’s Manara Minerals is nearing an agreement to purchase a minority interest in First Quantum’s copper and nickel holdings in Zambia.

“We’re more open to partnerships, and that includes in Zambia, but only if it’s in the interest of our Zambian business, the Zambian government and all the stakeholders involved,” First Quantum CEO Tristan Pascall said on a conference call with analysts. The company’s shares were up 3% in early trade at C$18.93.

Copper is a highly sought-after component for the clean energy transition, as it is used to make electric cars and power data centres for artificial intelligence. The possible Manara Minerals deal, which may be worth between $1.5 billion and $2 billion, is in the news.

A stake sale in the Zambian mine would assist First Quantum in paying down its mounting debt following the Panamanian government’s order to close its flagship Cobre Panama mine last December in response to public outcry.

The business is awaiting a decision regarding the mine’s future and permission from Panama’s new government to transport 121,000 metric tonnes of trapped copper concentrate.

If that copper was approved for sale, working capital would be available to keep the mine operating. Monthly mining maintenance costs for the Canadian miner range from $11 million to $13 million.

Pascall cautioned that the business will need to reduce expenses, particularly staffing, in the coming months.

VenturesNow

Egypt reduces 2040 renewable energy target to 40%, prioritises natural gas

Published

4 days ago

October 20, 2024

Ifeoluwa Dada

Petroleum Minister Karim Badawi announced on Sunday that Egypt had reduced its 2040 renewable energy target down from a previous goal of 58% to 40%, highlighting the fact that natural gas will continue to play a significant role in the nation’s energy mix for years to come.

Egypt promised to increase the percentage of renewable energy output in its energy mix to 42% by 2035 before hosting the COP27 climate meeting in 2022.

Later, the aim was advanced to 2030. Mohamed Shaker, the then-minister of electricity, unveiled a bold proposal in June 2024 to increase this to 58% by 2040; however, that goal has since been abandoned.

“This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve discoveries in the region, which holds more wealth, particularly natural gas,” Badawi said in the opening session of the Mediterranean Energy Conference 2024.

Egypt’s persistent dependence on fossil fuels coincides with efforts to regain the confidence of international oil companies, whose domestic activities ceased due to a shortage of hard currency that put the nation in debt to the tune of billions of dollars.

Since entering office in July, Badawi has met with many foreign energy corporations, such as Eni of Italy, which intends to increase production in Egypt’s largest gas field, Zohr, by digging additional wells in early 2025.

At its peak of 3.2 billion cubic feet per day (bcf/d) in 2019, Zohr’s gas output allowed the nation to turn a profit.

However, by early 2024, output had dropped to 1.9 bcf/d, forcing Egypt to import more gas through a pipeline connecting it to Israel and more LNG to avoid a months-long load-shedding program.

Additionally, Egypt imports fuel oil that contains sulphur; in September, imports reached a record-breaking 255,000 barrels per day (bpd), the highest level since at least 2016.