₦airaland Forum

#DIY

Which processing center did you get a date for August ending?
Ikoyi, Festac or Alausa??

Ladiva:
I did the same thing just yesterday, followed through and booked for my appointment, no issues whatsoever. Was very seamless, my biometric capture is for the end of this month

Please, give me the prices of Original Coleman, Nigerchin and Purechem for :

1.5mm, 2.5mm, 4mm, 6mm, 10mm and 16mm load wire. Thanks.
send to kemzone2003@yahoo.com

What semester are you going for?

fysapop:
Thanks...I am a Lady ooo...Prodigy is well known na...

Bluffly:
What sensitivity are you talking about?. They are pengashits. Can't they list the issues for the Nigerians to see? Just selfish interests. Why using Nigerians as pawns. Nonsense.

Pengasson is going on strike due to $7bn Unpaid JV Cash Calls by previous govt over 10years owed by Jonathan & Yaradua Administration.

DETAILS BELOW

Nigeria’s crude oil production from the Production Sharing Contracts (PSCs) with the international oil companies (IOCs) is known to have grown by over 700 per cent in the last 10 years due to federal government’s non-involvement in funding PSCs. In contrast, the country has lost over 50 per cent of crude oil production from the joint venture (JV) operations during the same period as a result of government’s inability to provide its JV cash calls, which has accumulated to $7 billion. Ejiofor Alike writes that the Minister of State for Petroleum, Dr. Ibe Kachikwu, should pursue vigorously his proposed funding models to liquidate this outstanding obligation

Shortly after assumption of office as the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, had unveiled plans to explore alternative funding models to pay the outstanding arrears of NNPC’s obligations to the joint venture companies with the international oil companies (IOCs), which currently stand at about $7 billion.

Before entrenched interests mounted spirited opposition against his reform at the NNPC, Kachikwu’s target was to pay all the arrears, which was then around $6 billion, by the end of December 2015.

As at that time, the reform was already yielding dividends with the corporation already saving $150 million monthly from the cancellation of certain contracts, while he focused on transparency for the NNPC to get back its credibility.

In the joint venture between the NNPC and the IOCs, each of the partners contribute funding, otherwise called Cash Call, according to their equity holdings in the joint venture company and also lifts crude oil in that proportion.

Under current JV arrangements between the NNPC and the IOCs, the NNPC contributes about 55 per cent of the funding requirement, while the foreign firms provide the remaining 45 per cent.

But the federal government, through the NNPC has over the last 10 years demonstrated lack of financial capacity to fund the JV projects between the NNPC and the IOCs.

In contrast, production from projects under the PSC arrangement, which are solely funded by the IOCs, has risen by about 700 per cent over the same period.

In fact, Nigeria’s crude oil exports are sustained today by huge production from prolific deep offshore fields such as Shell’s Bonga, ExxonMobil’s Erha, Total’s Akpo and Usan; and Chevron’s Agbami, which are all under PSCs.

The IOCs, on the other hand, are selling their stakes in JVs to local entities due partly to government’s inability to provide its own funding to boost investments in JVs.

So, a major challenge of the joint venture system is the inability of the NNPC to meet its cash-call obligations.

This development led to the establishment of a new fiscal regime – PSC, modelled after Indonesia’s Production Sharing Agreement.

Under a PSC, the NNPC does not contribute any fund as the PSC contractor (IOC) provides 100 per cent of the risk capital, as well as technical and manpower requirements.

However, the contractor recoups the investment outlay when it starts the export of crude oil.

But the grave danger in the Nigerian PSC is that the IOC is not refunded the exploration cost if oil is not found in a commercial quantity.

Following the National Assembly’s failure to allocate enough money as cash calls for the NNPC in the country’s budget over the years, the arrears of JV cash calls have accumulated to about $7 billion.

“If you ask for $4 billion; they (National Assembly) will give you $1.5 billion,” Kachikwu had told THISDAY.

For the first time in a very long time, Kachikwu had on assumption of office, introduced a raft of measures to open up the oil and gas sector and enthrone a regime of transparency, due process and accountability in an industry that was run in an opaque and secret nature.

Due to inadequate funding of the JVs by the NNPC, crude oil production by the NNPC JV with Shell, Chevron, Total and ExxonMobil has dropped by 50 per cent in the last 10 years.

According to statistics obtained by THISDAY, the country should have been producing between 500,000 barrels per day and 1 million bpd more than it is producing today if the government had been providing adequate funding.

Kachikwu’s new funding models

Kachikwu achieved a major feat for the JV when he secured$1.2 billion multi-year drilling financing package for 36 offshore/onshore oil wells under the NNPC/Chevron Nigeria Limited Joint Venture as one of the funding models he proposed.

With the restoration of the confidence of local and foreign investors in the sector, a landmark achievement was recorded when the $1.2 billion multi-year drilling financing package was secured in 2015.

The funding package, which is being financed by a consortium of Nigerian and international lenders, is an integral part of the Accelerated Upstream Financing Programme initiated by Kachikwu to address the perennial challenge experienced by the federal government in providing its counter-part funding of JV upstream activities.

A breakdown of the NNPC/ Chevron JV deal, which was executed at a signing-ceremony in London, showed that the $1.2 billion is to be channelled into the development of 23 onshore and 13 offshore wells on Oil Mining Leases (OMLs) 49, 90 and 95 in two stages over 2015- 2018.

Stage one, comprising 19 wells is projected to deliver 21, 000 barrels of crude oil and condensate per day alongside 120 million standard cubic feet of gas per day, mmscf/d, over 2015 and 2016.

Stage two, comprising 17 wells is projected to yield 20, 000 barrels of crude oil and condensate per day alongside gas production of seven mmscf/d of gas between 2016 and 2018.

It is envisaged that both stages of the project would generate $2 billion to $5 billion of incremental revenue to the Federation Account.

Beyond the contribution to the national treasury, the projected peak incremental gas production of 127 million standard cubic feet per day (mmscf/d), which is the electricity equivalent of 400 megawatts, would help boost the Federal Government’s domestic gas aspirations with expectant positive effect on power supply.

Kachikwu had described the new alternative funding arrangement as the new contractual model in upstream financing which would serve as a template for future initiative to supplement the federal government’s joint venture Cash Call commitment.

While commending the NNPC/ Chevron Joint Finance Team and the consortium of local and international lenders led by Standard Chartered Bank and UBA, the minister had noted that NNPC would not relent in the renewed effort to restore probity and transparency to the process of generation, collection and remittance of crude oil proceeds.

He encouraged the other IOCs to come up with funding models that would be favourable to the joint venture partners.

Exploring Funding Options

The minister has consistently restated that rather than waiting for the federal government’s budgetary allocations, there are viable alternative funding options for the JV projects if the government and the IOCs could sit on a negotiating table.

As the then Executive Vice Chairman and General Counsel of ExxonMobil (Africa), Kachikwu had prepared the legal framework for the successful raising of about $15 billion in recent years by the joint venture between the NNPC and Mobil Producing Nigeria (MPN).

As the Minister of State for Petroleum, he should therefore be allowed by entrenched political interests to implement his vision for alternative funding options such as External Financing (EF); and Alternative Funding (AF) or Modify Carry Agreement (MCA).

Having been given a free hand by President Muhammadu Buhari to implement the Change Agenda in the oil and gas industry, he should not be distracted in implementing the administration’s dreams. As a global business run in line with global best practices, Nigeria’s oil and gas business should not be mixed with local politics.

“I am grateful to be working with the President, who has done everything that you would expect in terms of giving you the latitude to bring the issues on the table; discuss with him; and reach decisions that will be fruitful to this industry.

So, if you see the speed with which we are moving, it is because he has given me the free hand and is willing to work with me to sanitise the company. The President is very emotional about the poor people,” Kachikwu had explained.

External financing will relieve the federal government of its obligations to the JVs.

In external financing, commercial banks provide funding for approved JV work programmes at cost-effective and market-driven borrowing rates.

External financing is structured in a way that the lenders have no recourse to the JV assets, as the loan is secured from forward sale of incremental volumes.

Under Alternative Funding or Modified Carry Arrangement, the IOC funds the NNPC share of the approved JV work programme.

The IOC receives agreed after-tax Internal Rate of Return (IRR), while the loan is repaid via tax relief and crude oil liftings.

As pointed out earlier, the joint venture between the NNPC and Mobil Producing Nigeria had successfully raised $15 billion through these alternative funding options in recent years.

Shell has also raised billions of dollars under Modified Carry Arrangement to fund NNPC’s share of JV work programmes.

The federal government should therefore provide all the enablers for the IOCs to use alternative funding options to finance NNPC cash calls, so as to solve the problem of the inability of the corporation to fund the JV, which has constrained Nigeria’s overall oil production growth.

Alternative funding has provided viable options for funding JV projects, especially during this period of plummeting crude oil price.
http://www.thisdaylive.com/index.php/2016/06/19/kachikwus-funding-options-for-7bn-unpaid-jv-cash-calls/

Interested Call 08059383650 & 08038214461

http://www.nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/articleType/ArticleView/articleId/618/Refineries-Producing-676-Million-Litres-of-Petrol-per-Day-NNPC.aspx


Refineries Producing 6.76 Million Litres of Petrol per Day – NNPC
Refineries Producing 6.76 Million Litres of Petrol per Day – NNPC
…To Ramp up Production to over 10 Million Litres by Month End


The Nigerian National Petroleum Corporation, NNPC, has announced that the nation’s three refineries in Kaduna, Port Harcourt and Warri have attained a combined daily production of over 6.76 million litres of petrol per day which is projected to increase to over 10 million litres per day by the end of January 2016.

A statement by the NNPC which gave a breakdown of the premium motor spirit, PMS, (also known as petrol) yield from the plants indicates that while Port Harcourt Refinery which was re-streamed a week earlier is producing some 4.09 million litres, the Kaduna Refinery is contributing some 1.29 million litres and Warri which was re-streamed on Sunday is posting a yield of some 1.38 million litres.

The Corporation confirmed that the PMS volumes from the refineries which are currently operating at an appreciable percentage of their nameplate capacities will help stabilize the fuel supply and distribution situation in the country.



OHI ALEGBE

Group General Manager

Group Public Affairs Division

Nigerian National Petroleum Corporation

NNPC Towers, Abuja

05/01/16.

God Bless you COMPAQ...To add a little..I will compare the pricing template in USA and Nigeria with reference links if anyone need details

US Methodology For Gasoline and Diesel Fuel Pump Components
The components for the gasoline and diesel fuel pumps are calculated in the following manner in cents per gallon and then converted into a percentage:

Crude Oil - the monthly average of the composite refiner acquisition cost, which is the average price of crude oil purchased by refiners.

Refining Costs & Profits - the difference between the monthly average of the spot price of gasoline or diesel fuel (used as a proxy for the value of gasoline or diesel fuel as it exits the refinery) and the average price of crude oil purchased by refiners (the crude oil component).

Distribution & Marketing Costs & Profits - the difference between the average retail price of gasoline or diesel fuel as computed from EIA's weekly survey and the sum of the other 3 components.

Taxes - a monthly national average of federal and state taxes applied to gasoline or diesel fuel.

It should be noted that the second and third components can vary widely, depending on the time when the components are being calculated. Since there is typically a lag between when the spot price changes to when the retail price changes, the refining costs & profits component and the distribution & marketing costs & profits component can vary from month to month. For example, as prices increase on the spot market, often the retail prices take time to adjust. Thus, at this point in the cycle, the refining costs & profits component (assuming no corresponding increase in crude oil prices) would be relatively large while the distribution & marketing costs & profits component would be relatively small. However, later on, as retail prices "catch-up" with the previous spot price increases, the distribution & marketing costs & profits component would increase while the refining costs & profits component would decrease.
http://www.eia.gov/petroleum/gasdiesel/pump_methodology.cfm#1


NIGERIA METHODOLOGY -
DESCRIPTION OF COMPONENTS ON THE PRICING TEMPLATE

1. PRODUCT COST ($/MT)
This is the monthly moving average cost of products cost as quoted on Platts Oil gram. The reference spot market is North West Europe (NWE).
2. FREIGHT ($/MT)
This is the average clean tanker freight rate (World Scale (WS) 100) as quoted on Platts. It is the Cost of transporting 30, 000mt (30kt) of product from NWE to West Africa (WAF). Trader’s margin of $10/MT is also factored into the Freight cost.

3. LIGHTERING EXPENSES ($/MT)
STS/Local Freight charge is the cost incurred on the transshipment of imported petroleum products from the mother vessel into daughter vessel to allow for the onward movement of the vessel into the Jetty. This charge includes receipt losses of 0.3% in the process of products movement from the high sea to the Jetty and then to the depot. The mother vessels expenses are based on the allowable 10 days demurrage exposure at the rate of $28,000 per day.

The Lightering Expenses also includes the Shuttle vessel’s chartering rates from Offshore Lagos to Lagos and Port Harcourt which currently stands at N2.00 per litre and N2.50 per litre respectively. Transshipment (STS) process is as a result of peculiar draught situation and inadequate berthing facilities at the Ports.

4. NIGERIA PORT AUTHORITY (NPA) CHARGE ($/MT
It is the cargo dues (harbor handling charge) charged by the NPA for use of Port facilities. The charge includes VAT and Agency expenses.

Currently, NPA charge attracts $10.50/MT on the pricing template.

5. FINANCING
It refers to stock finance (cost of fund) for the imported product. It includes the cargo financing based on the International London Inter bank Offered Rates (LIBOR) rates+5% premium for 30 days (for Annual Libor rate of 2.07%, LIBOR cost would be 7.07%). Also included in the Finance cost is the inertest charge on the subsidy element being awaited for an allowable 60 days period at Nigerian Inter Bank Offered Rate (NIBOR) rate of 22%.

6. JETTY DEPOT THRU PUT
This is the tariff paid for use of facilities at the Jetty by the marketers to move products to the storage depots. The value is currently N0.80/litre.

7. STORAGE CHARGE
Storage Margin is for depot operations covering storage charges and other services rendered by the depot owners. The charge is currently N3.00/litre.

8. LANDING COST
It is the cost of imported products delivered into the Jetty depots. It is made up of components highlighted above (1, 2, 3, 4, 5, 6 and 7).

9. DISTRIBUTION MARGINS
These include Retailers (N4.60 per litre), Transporters margins (N2.99 per litre), Dealers margin (N1.75 per litre), Bridging Fund (plus Marine Transport Average) (N6.00 per litre) and Administrative charge (N0.15 per litre). This amounts to N15.49 per liter on the template. The overhead cost and other running costs have been considered in the determination of these margins.

10. TAXES
These include highway maintenance, government, import and fuel taxes. It has the overall objectives of revenue generation, social infrastructure investment and servicing and efficient fuel usage. Presently, all these attract zero taxes.

11. RETAIL PRICE
This is the expected pump price of petroleum product at retail outlet. It is made up of landing cost of imported product plus reasonable distribution margins.

http://pppra.gov.ng/pricing-template-pms-2/
http://pppra.gov.ng/pricing-template/

COMPAQ:
Dude, you are not arguing from a point of knowledge. A few reasons why the price of petrol in Nigeria is not perfectly elastic to the price of crude:

1: crude makes up only about 40-50% of the petrol price in most countries. The rest is made up of refining costs, distributions costs, marketing costs and special taxes. None of those would have changed because crude prices have crashed.
2: even as crude prices have crashed (which should take the petrol price down), exchange rate has gone the other direction in the same period (158 to 200), which causes the Naira price of petrol to go up since we import it.
3: our method of getting petrol where we send it out, people refine and send it back means we are paying for extra profit margins, shipping and refining costs that most other people are not paying.

Let's do some maths.
Typical gallon of petrol in us averages about $2=N400.
Let's assume gallon = 4litres (it's actually 3.
The US litre=N100
US price consists if about 20% special tax
If we assume we don't want to put extra levy on our petrol and we back out the 20%, you might get to N80 give or take.

Also your statement about US government reducing prices cannot be true because the sector is fully deregulated in America. If the prices came down its purely due to demand and supply forces.

Hope I've helped.

.....

...

....

..

,,,,

..

S/N LGA APC PDP WON
1 Okehi 10170 8504 APC
2 Ogori-Magongo 1931 2601 PDP
3 Mopa/Moro 3888 4195 PDP
4 Ajaokuta 8581 6903 APC
5 Adavi 15636 11902 APC
6 Kogi-Kotonkarfe 10426 9316 APC
7 Ijumu 9958 6040 APC
8 Yagba West 7930 7021 APC
9 Yagba East 7129 5368 APC
10 Okene 14786 15968 PDP
11 Idah 11779 6592 APC
12 Kabba Bunu  9659 7768 APC
13 Omala 9228 10517 PDP
14 Ofu 16800 10997 APC
15 Ankpa 22983 14731 APC
16 Olamaboro 13227 8202 APC
17 Igala-Mela 9003 8683 APC
18 Bassa 11815 9258 APC
19 Lokoja 13,517 12,414 APC
20 Dekina 20994 21602 PDP
21 Ibaji 11427 10572 APC

TOTAL VOTES

APC-240867

PDP - 199154

DIFFERENCE - 41713

SOLD SOLD SOLD .....THANKS

....

..

Interested Still Available Call 08059383650

Yes, This car is part of my 2014 Batch of 30 Vehicles..I just found out its still in stock with the 2015 Batch of cars....I guess na becos na small motooo If you are interested you can call to discuss and test drive at your free time.

No Sir, But you can give me a call if you want us to discuss

pabloXL:
800k..possible??

Interested Still Available Call 08059383650

Interested Still Available Call 08059383650

The Heads of States Luncheon

State Luncheon hosted by the Secretary-General for the Heads of Delegation to the Seventieth Session of the General Assembly

http://webtv.un.org/live-now/watch/the-heads-of-states-luncheon/4486540066001

Interested Call 08059383650 & 08038214461

Interested Call 08059383650 & 08038214461

Interested Call 08059383650 & 08038214461

Interested Call 08059383650 & 08038214461

Interested Call 08059383650 & 08038214461

Interested Call 08059383650 & 08038214461