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Nigeria’s oil firm uncovers 122 illegal refineries

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In the last week, Nigeria’s oil-rich Niger Delta region has witnessed the discovery of 122 illicit oil refinery installations. The discovery was made by the Nigerian National Petroleum Company Limited (NNPCL).

According to the NNPCL, a gas station in Akwa Ibom State was closed for supplying motorists with unlawfully refined fuel. In Rivers and other states in the oil-rich Niger Delta, 65 unauthorized pipeline connections were found and destroyed in the previous week, according to a documentary issued by the NNPCL on Tuesday.

“310 incidents were recorded between May 18 and 24 across the Niger Delta region,” the NNPCL disclosed while reeling out its efforts in fighting oil theft and vandalism.

A filling station in Grey Creek, Akwa Ibom State, was found to be selling illegally refined petrol. At Tomble II, III, IV, Umuajuloke, Rivers State, Oporomor III, Eduwini, and Ajatiton in Bayelsa State, 122 illicit refineries were observed.

According to reports, vandalized well heads were found in Imo State’s Tomble IV, Rivers, and Egbema. Additionally, a wellhead that had been vandalized revealed a pit full of crude oil.

The energy business reported that they spotted five illicit storage facilities where oil was kept in pits, sacks, cans, and a filling station. In the states of Delta and Imo, twenty vehicles—including a tanker—were taken into custody. Simultaneously, 29 boats in the states of Bayelsa and Delta were seized while transporting crude oil or products illegally processed across multiple waterways.

33 people are reportedly under custody concerning the incidents. Mele Kyari, the chief executive officer of the NNPCL Group, recently emphasized the necessity of combating insecurity in the oil and gas industry to boost output. According to Kyari, vandalism and oil theft are the main causes of the country’s declining crude oil production.

“How do you increase oil production? Remove the security challenge we have in our onshore assets. As we all know, the security challenge is real. It is not just about theft, it is about the availability of the infrastructure to deliver the volume to the market.

“No one will put money into oil production when he knows the production will not get to the market. We removed over 5,800 illegal connections from our pipelines within the last two years. We took down over 6,000 illegal refineries. You cannot get people to put money until you solve that problem,” he stated.

In November, the Nigerian government revealed that more than N4.3tn of crude oil was stolen in 7,143 pipeline vandalism cases within five years.

 

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Nigeria’s Dangote Refinery exports first fuel to Cameroon

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The Dangote Refinery in Nigeria said on Wednesday that it had exported its first petrol to Cameroon, marking a significant milestone that may help stabilise gasoline costs throughout the region and open the door for regional energy integration.

When fully operational, Nigerian billionaire Aliko Dangote’s 650,000-barrel refinery in Lagos is intended to alter the trade of refined products in the Atlantic basin and compete with refineries in Europe.

According to a statement by Neptune Oil, an energy company based in Cameroon, both businesses were looking into new projects to create a dependable supply chain that would assist in stabilising fuel costs and opportunities throughout the area.

According to Neptune Oil, there were no middlemen involved in the petrol delivery deal.

It is anticipated that the refinery’s operations will spur growth in the upstream, midstream, and downstream sectors, increasing investments in cement manufacture, plastic and rubber production, chemical and pharmaceutical goods, and oil refining.

 

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Egypt’s November inflation drops to 25.5%, near 2-year low

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According to figures released Tuesday by statistics agency CAPMAS, Egypt’s annual urban consumer price inflation rate fell more than anticipated to 25.5% in November, the lowest level since December 2022.

Following the Russian invasion of Ukraine, which caused international investors to pull billions of dollars out of Egyptian treasury markets, inflation started to rise sharply in early 2022.

In September 2023, headline inflation reached a record high of 38.0%. It dropped to 26.5% by October 2024.

In a Reuters survey last month, 15 economists’ consensus prediction was for annual inflation to gradually decline to 26.4%.

According to CAPMAS statistics, headline inflation decreased from 1.1% in October to 0.5% in November every month.

Compared to October, when they fell 1.1%, food costs fell 2.8% over the month, making them 23.3% more than they were a year ago.

An increase in the money supply has been a major contributor to inflation. According to central bank data, Egypt’s M2 money supply increased by 29.54% in October compared to the same month last year.

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