…Nigeria, Niger sign MoU

President Muhammadu Buhari on Tuesday hailed the move by Nigeria to export crude oil from Niger Republic.

He also welcomed the setting up of a refinery in Katsina state that will make use of “stranded crude” from Niger Republic.

The two countries on Tuesday signed a Memorandum of Understanding (MoU) at the Presidential Villa, Abuja.

At the ceremony, President Buhari thanked the Niger delegation for considering Nigeria as a partner on what he observed as a mutually beneficial strategic initiative.



According to him, Nigeria and Niger have had excellent relations for several decades as neighbours sharing a long border with common cultural and historical ties.

Nigeria, he said, sees the cooperation on crude oil export from the Republic of Niger and construction of refinery facilities in Katsina State as a “win – win” for both nations.

He said: “The initiative will not only provide a reliable market for the stranded crude from the Niger Republic but will also provide petroleum products for Nigeria, as it aggressively pursues its aspiration on petroleum product self-sufficiency.

“In addition, it is my hope that the current frontier exploration efforts in the Northern part of the country (Chad Basin, Gongola Basin, Sokoto Basin, Bida Basin and Benue trough) will also result in the provision of additional hydrocarbon inflow to the corridors of the proposed pipeline and a potential refinery around Kaduna axis.

“I am happy that several productive engagements held between the Nigerian and Nigerien authorities have resulted in the positive agreements to progress with activities on this important project.

“This project will be private sector driven with the full support of the governments of both countries and I am happy to understand that several expressions of interest from prospective investors are already being received,” he said.

He also announced the setting up of a steering committee to be chaired by the Nigerian Minister of State for Petroleum Resources, Dr. Ibe Kachiku, while the alternate chairman is the Nigerien Minister of Petroleum, to provide strategic leadership, direction and governance oversight for the project.



He also said that a Senior level Joint Technical Team has been selected based on competence to develop the implementation roadmap and strategy on both the refinery and pipeline projects.

He said that the team will be led by Nigeria’s Engineer Rabiu Suleiman supported by the DG Hydrocarbon of Niger Republic.

Buhari said he expected that by December 2018, the group will come up with a detailed roadmap and guideline leading to actual execution of the projects.

He directed that the detailed roadmap should cover the following: Bankable feasibility studies for both the Refinery and pipeline projects; Optimal project site, pipeline routes and details; Security plan and selected consortia of investors for both the refinery and pipeline projects.

The President assured of Nigeria’s commitment to pursuing “this partnership with vigour and determination.”

In his address at the occasion, Kachiku said Buhari has personally driven the initiative, which he said was propelled by the sole desire to create a more favourable investment opportunity in Nigeria’s downstream sector and encourage cross border economic development.

The occasion was witnessed by the President of Niger Republic, Issoufou Mahammadou.

Speaking on when the refinery will start, an oil and gas investor, Ibrahim Zakari said “I think the two presidents have already mentioned everything. It is going to be private driven by investors-100 percent private driven. We are one of the investors who are willing to invest almost 2bn dollars.

“The funds are coming from abroad, us, Canada, India and the middle east. It’s going to be a 50 thousand barrel refinery then we will scale it up to 100 thousand with the crude coming from Niger Republic.

On the time frame, he said “It will take 3-5 years to complete the refinery, it’s a Modular refinery. It will create 2500 direct employment and over 10 thousand indirect employment. It will cover not only Katsina and the North but the whole of Nigeria.”

Credit – The Nation Newspaper

Source: https://naijatimes.xyz/buhari-welcomes-moves-to-import-crude-from-niger-republic/

This is another dumb move, if true, I will explain why.

A nation whose major source of revenue is sales of crude oil, wants to incur expenditure in the purchase of the same crude oil again.

If for example, you sell at $65/barrel (OPEC price), you probably incurred let's say $10/barrel as cost of production, leaving you with a margin of $55/barrel, you now use that $55 to go buy the same product @$65/barrel (OPEC price) from Niger and incur some additional contingencies cost and probably land the product at Katsina refinery at let's say $75/barrel. Where is the sense in that?

But if you transfer from the production site within Nigeria, you don't have to sell at OPEC price it will just be production cost + transport cost to refinery. (Except this agreement with Niger is a long-term preparation for the breakup of Nigeria, otherwise it makes no sense under any guise in my opinion) .

Who are the advisors to this corruption-fighting President?
Na so una mumu reach?

What do I know about oyel self, I'm just an Accountant, not even chartered ooo.

godfatherx:
Another dumb move

Everytime I read about this dummy my PVC starts vibrating in my pocket.

Seriously Nigeria really got served! In a country where everybody over sabi na dunce dey always rule dem.

godfatherx:
This is another dumb move, if true, I will explain why.

A nation whose major source of revenue is sales of crude oil, wants to incur expenditure in the purchase of the same crude oil again.

If for example, you sell at $65/barrel (OPEC price), you probably incurred let's say $10/barrel as cost of production, leaving you with a margin of $55/barrel, you now use that $55 to go buy the same product @$65/barrel (OPEC price) from Niger and incur some additional contingencies cost and probably land the product at Katsina refinery at let's say $75/barrel. Where is the sense in that?

But if you transfer from the production site within Nigeria, you don't have to sell at OPEC price it will just be production cost + transport cost to refinery. (Except this agreement with Niger is a long-term preparation for the breakup of Nigeria, otherwise it makes no sense under any guise in my opinion) .

Who are the advisors to this corruption-fighting President?
Na so una mumu reach?

What do I know about oyel self, I'm just an Accountant, not even chartered ooo.

The article clearly calls it "stranded crude" which means that they are unable to export it (likely because of no access to the season).
They need to partner with a country in order to export (in this case, Nigeria). That's why the article says "Nigeria to export crude from Niger" and not that we are to import crude from Niger.
Asides, it's 100% private sector driven. So what's our fear?
It's a win/win situation for us

Well I won't blame him

If am from Ghana and I become the President of Nigeria, I would do everything to make sure GHANA benefits from my leadership

Even if it's a dumb and rubbish move.

Gliding:


The article clearly calls it "stranded crude" which means that they are unable to export it (likely because of no access to the season).
They need to partner with a country in order to export (in this case, Nigeria). That's why the article says "Nigeria to export crude from Niger" and not that we are to import crude from Niger.
Asides, it's 100% private sector driven. So what's our fear?
It's a win/win situation for us

Pls enlighten me futher on the bolded above - Nigeria to export crude from Niger andvnot that we are to import crude from Niger. I hope this is not just playing with semantics.

How does Nigeria export from another country into herself, yet it's not import to Nigeria? Ayam konfuse.

100% private sector driven, in an economy where petroleum products are not fully deregulated. FG still determines how much you will sell, another subsidy scam loading.

My dear, me I look at things on the long run o, but if there's no cause for alarm, I will be glad if you will explain it to me better than the above.