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Showing posts with label crude oil prices. Show all posts

Niger Delta Group Seeks EFCC’s Intervention in Tackling Oil Theft

Niger Delta Group Seeks EFCC’s Intervention in Tackling Oil Theft

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The Community Development Committees (CDC) of Niger Delta Oil and Gas Producing Areas have called for a more direct intervention of the Economic and Financial Crimes Commission, EFCC, in tackling the scourge of crude oil theft and pipeline vandalism in the Niger Delta region.


The group made the call on Tuesday, February 13 when its Board of Trustees, led by the Chairman, Joseph Ambakederimo paid a courtesy visit to the Executive Chairman of the EFCC, Mr Ola Olukoyede at the corporate headquarters of the Commission.


Ambakederimo noted that oil theft in the Niger Delta has caused huge disruption to the country’s economic forecasts and negatively impacted the national economy.


“Oil theft and vandalization of oil infrastructure are issues of economic sabotage and a threat to national security. The EFCC is empowered by law to deal with economic saboteurs. We urge the Commission to give adequate attention to this threat to our environment in the Niger Delta and the economic sabotage of our country by adopting preventive measures and diligent prosecution of culprits”,  he said.


 He decried the involvement of oil-producing communities in oil theft, stressing that a national conference may be needed to address the issue. “Community involvement in oil theft should be a cause for worry to every patriotic Nigerian. The complicity and conspiracy of silence by well-meaning individuals is even more troubling. This menace at some point affects everyone. We advocate for a more robust national discourse on this existential threat of our time,” he said.


Responding, the EFCC boss who spoke through the Commission’s Secretary, Mr Mohammad Hammajoda praised the initiative of the group and assured the delegation of the Commission’s collaboration with all relevant agencies of government and non-state actors to bring the menace of crude oil theft and pipeline vandalism to an end.


“We highly appreciate your presence. This is an important engagement towards finding a solution to the scourge of oil theft and vandalization of oil and gas infrastructure in the Niger Delta region. Apart from the fact that oil theft has made it difficult over the years for us as a country to meet up with our OPEC production quota, and by extension diminish the revenue we ought to make from crude oil sales for national development, the menace often comes with the evil of pipeline vandalism, which in several cases leaves a huge toll of environmental pollution, manifesting in the destruction of marine economy, farmlands and everything in the ecosystem, including human lives”, he said.


He further stated that, “arresting the tide of oil theft is at the core of what we do in the Commission in nearly all the zonal commands in the southern part of the country, particularly in the Niger Delta. I give you my assurance that we will collaborate with your organization for the sake of our country, our generation and posterity”.


Source; EFCC






The Community Development Committees (CDC) of Niger Delta Oil and Gas Producing Areas have called for a more direct intervention of the Economic and Financial Crimes Commission, EFCC, in tackling the scourge of crude oil theft and pipeline vandalism in the Niger Delta region.


The group made the call on Tuesday, February 13 when its Board of Trustees, led by the Chairman, Joseph Ambakederimo paid a courtesy visit to the Executive Chairman of the EFCC, Mr Ola Olukoyede at the corporate headquarters of the Commission.


Ambakederimo noted that oil theft in the Niger Delta has caused huge disruption to the country’s economic forecasts and negatively impacted the national economy.


“Oil theft and vandalization of oil infrastructure are issues of economic sabotage and a threat to national security. The EFCC is empowered by law to deal with economic saboteurs. We urge the Commission to give adequate attention to this threat to our environment in the Niger Delta and the economic sabotage of our country by adopting preventive measures and diligent prosecution of culprits”,  he said.


 He decried the involvement of oil-producing communities in oil theft, stressing that a national conference may be needed to address the issue. “Community involvement in oil theft should be a cause for worry to every patriotic Nigerian. The complicity and conspiracy of silence by well-meaning individuals is even more troubling. This menace at some point affects everyone. We advocate for a more robust national discourse on this existential threat of our time,” he said.


Responding, the EFCC boss who spoke through the Commission’s Secretary, Mr Mohammad Hammajoda praised the initiative of the group and assured the delegation of the Commission’s collaboration with all relevant agencies of government and non-state actors to bring the menace of crude oil theft and pipeline vandalism to an end.


“We highly appreciate your presence. This is an important engagement towards finding a solution to the scourge of oil theft and vandalization of oil and gas infrastructure in the Niger Delta region. Apart from the fact that oil theft has made it difficult over the years for us as a country to meet up with our OPEC production quota, and by extension diminish the revenue we ought to make from crude oil sales for national development, the menace often comes with the evil of pipeline vandalism, which in several cases leaves a huge toll of environmental pollution, manifesting in the destruction of marine economy, farmlands and everything in the ecosystem, including human lives”, he said.


He further stated that, “arresting the tide of oil theft is at the core of what we do in the Commission in nearly all the zonal commands in the southern part of the country, particularly in the Niger Delta. I give you my assurance that we will collaborate with your organization for the sake of our country, our generation and posterity”.


Source; EFCC

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Kolmani Oil Discovery: What it means Ahmed Adamu, PhD

Kolmani Oil Discovery: What it means Ahmed Adamu, PhD

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Some Nigerians had some euphoria as the game-changing oil and gas discovery in Kolmani, a Northern Nigerian area, was announced. It is the first Northern Nigerian proven petroleum reserve, sixty-six years after petroleum discovery in southern Nigeria. "What does this discovery mean to us as Nigerians and northerners," someone from the north called and asked me.


An estimated proven reserve of 1 billion barrels of crude oil and 500 billion cubic feet of natural gas were found in an oil field that straddles Bauchi and Gombe states, known as the Kolmani oil field. The commercial quantity of the oil reserve in this area could increase in the future. 


Anywhere oil is found in Nigeria belongs to the federation. The only benefits to the host community are the 3% of the oil operating cost in the area from the preceding year and the constitutional 13% derivation funds to the state government. The new oil-rich states will benefit from these two sources.


The 3% is only for the oil-bearing communities; other non-oil-bearing communities will not benefit from it. At the same time, 13% of all the revenue generated from the oil produced in the state will go to the state government. Oil-producing states and their host communities could get more than N100 billion in a year from these two sources alone. 


Other extended benefits to the new oil-rich states could be direct jobs for high, medium, and small-skilled labor. Already some Indian oil companies have shown interest in becoming partners in developing the onshore Kolmani oil fields. 


Onshore oil production in Nigeria, like the Kolmani field, is not attractive to major oil-producing companies. The five major oil companies operating in Nigeria are divesting from onshore and shallow water oil fields despite the recent reduction in taxes and royalties in the PIA. Oil companies prefer deep water oil production to avoid hostilities from restiveness, vandalism, and insecurity associated with the onshore oil production areas. 


Because of what is stated in the PIA relating to the 3% for host communities, the Kolmani oil production should not experience restiveness and vandalism. The PIA said, "In any year where an act of vandalism, sabotage or other civil unrest occurs which causes damage to petroleum and designated facilities or disrupts production activities within the host communities, the community will forfeit its entitlement to the extent of the cost of repairs". Host communities' benefits are now tied to the smooth running of the oil production in their area.


NNPC limited will be the Kolmani oil and gas concessionaire and will lift Nigeria's profit oil and gas from the oil field and transfer the proceeds to the Nigerian Petroleum Upstream commission after deducting its service cost. However, the profit oil could only be derived after cost recovery by the developers of the field, known as contractors. 


The New Nigeria Development Company (NNDC) is the lease owner for petroleum mining on the field. But, could NNDC be able to develop this new oil field? No. NNDC may not have the technical and financial readiness to develop the Kolmani field yet. Therefore, oil companies must be contracted to spend millions of dollars and provide technical expertise to develop the area. 


There will not be a profit oil and gas from the field until after some years of production to allow the contractors to recover their cost, but this depends on the oil price and contract agreements. Mainly the cost incurred by the contractor in developing the field is amortized and may take up to the first five years of production, and then the profit sharing will start. This is to allow the operators to recover their costs of development. The government will transfer the exploration costs to the operator, which will add to the total cost of oil. 


The only money that will be accruing to the federation account in the early years of production will be the royalty crude and hydrocarbon taxes (only if there is a profit), which are 15% and 30% of the crude oil produced, respectively. It could take between five to ten years to develop the field. So, any financial benefits will be after developing the area. 


Would the focus be on developing crude oil only or both crude oil and gas? Natural gas has far-reaching economic benefits, but developing it is more expensive. With the ongoing gas pipeline projects, there could be more gas supply from this field which will help industrial growth in the country. 


Now, some states will begin to suspect their possible oil and gas reserves. We can now conclude that every part of Nigeria has a possible oil and gas reserve. With the first oil discovery in the north and with the creation of the Frontier Exploration Funds, more exploration will be undertaken in the north. The Frontier Exploration Fund is funded by 30% of the NNPC Limited profit oil and gas and 10% of all rents on petroleum licenses and leases. 


Many states are facing debt and development issues and might wish to have more control and access to the natural resources in their states to fix their problems. More oil, gas, and other natural resources could be harnessed when state governments are given the right to control those resources. States will maximize their potential resources to outcompete each other. 


In the event of states' resource control, people ask, how could border states handle shared oil and gas fields that cross their borders? Just like the Kolmani oil and gas field, which straddles across Gombe and Bauchi states. Any state that produces more at the border areas may draw more oil from the neighboring state. So, who drills first captures the oil.


 To avoid over-production and damage to the environment at the border areas, the neighboring states should unify the oil field, appoint a single operator, and share the profit based on where the field lies in relation to the boundary. State governments in a geo-political zone could undertake this kind of unification. 


Even after states' resource control, further oil explorations will continue to search for more oil and gas reserves in the states that do not confirm their petroleum deposits yet. So, non-oil-producing states could become oil producers eventually. 


With oil fading away and growing restrictions on the use of fossil fuels, we can maximize the utilization of our endowed petroleum resources to build infrastructure and the economy and fund alternative energy sources and consumption. 


Finally, more oil reserves without growing and functioning refineries will not make any difference. The focus should be on functioning and adequate refineries locally to stop importing refined petroleum. Imported refined petroleum is the biggest bill in our import basket. Having local refineries will help restore the value of our exchange rates. Government refineries must be privatized as soon as possible, and modular refineries should be encouraged to grow their efficiencies and capacities. So, the discovery of oil and gas in the Kolmani area is not a given benefit; it is a potential benefit, so celebrate not yet. 


Ahmed Adamu, PhD

Petroleum Economist

[email protected]



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Some Nigerians had some euphoria as the game-changing oil and gas discovery in Kolmani, a Northern Nigerian area, was announced. It is the first Northern Nigerian proven petroleum reserve, sixty-six years after petroleum discovery in southern Nigeria. "What does this discovery mean to us as Nigerians and northerners," someone from the north called and asked me.


An estimated proven reserve of 1 billion barrels of crude oil and 500 billion cubic feet of natural gas were found in an oil field that straddles Bauchi and Gombe states, known as the Kolmani oil field. The commercial quantity of the oil reserve in this area could increase in the future. 


Anywhere oil is found in Nigeria belongs to the federation. The only benefits to the host community are the 3% of the oil operating cost in the area from the preceding year and the constitutional 13% derivation funds to the state government. The new oil-rich states will benefit from these two sources.


The 3% is only for the oil-bearing communities; other non-oil-bearing communities will not benefit from it. At the same time, 13% of all the revenue generated from the oil produced in the state will go to the state government. Oil-producing states and their host communities could get more than N100 billion in a year from these two sources alone. 


Other extended benefits to the new oil-rich states could be direct jobs for high, medium, and small-skilled labor. Already some Indian oil companies have shown interest in becoming partners in developing the onshore Kolmani oil fields. 


Onshore oil production in Nigeria, like the Kolmani field, is not attractive to major oil-producing companies. The five major oil companies operating in Nigeria are divesting from onshore and shallow water oil fields despite the recent reduction in taxes and royalties in the PIA. Oil companies prefer deep water oil production to avoid hostilities from restiveness, vandalism, and insecurity associated with the onshore oil production areas. 


Because of what is stated in the PIA relating to the 3% for host communities, the Kolmani oil production should not experience restiveness and vandalism. The PIA said, "In any year where an act of vandalism, sabotage or other civil unrest occurs which causes damage to petroleum and designated facilities or disrupts production activities within the host communities, the community will forfeit its entitlement to the extent of the cost of repairs". Host communities' benefits are now tied to the smooth running of the oil production in their area.


NNPC limited will be the Kolmani oil and gas concessionaire and will lift Nigeria's profit oil and gas from the oil field and transfer the proceeds to the Nigerian Petroleum Upstream commission after deducting its service cost. However, the profit oil could only be derived after cost recovery by the developers of the field, known as contractors. 


The New Nigeria Development Company (NNDC) is the lease owner for petroleum mining on the field. But, could NNDC be able to develop this new oil field? No. NNDC may not have the technical and financial readiness to develop the Kolmani field yet. Therefore, oil companies must be contracted to spend millions of dollars and provide technical expertise to develop the area. 


There will not be a profit oil and gas from the field until after some years of production to allow the contractors to recover their cost, but this depends on the oil price and contract agreements. Mainly the cost incurred by the contractor in developing the field is amortized and may take up to the first five years of production, and then the profit sharing will start. This is to allow the operators to recover their costs of development. The government will transfer the exploration costs to the operator, which will add to the total cost of oil. 


The only money that will be accruing to the federation account in the early years of production will be the royalty crude and hydrocarbon taxes (only if there is a profit), which are 15% and 30% of the crude oil produced, respectively. It could take between five to ten years to develop the field. So, any financial benefits will be after developing the area. 


Would the focus be on developing crude oil only or both crude oil and gas? Natural gas has far-reaching economic benefits, but developing it is more expensive. With the ongoing gas pipeline projects, there could be more gas supply from this field which will help industrial growth in the country. 


Now, some states will begin to suspect their possible oil and gas reserves. We can now conclude that every part of Nigeria has a possible oil and gas reserve. With the first oil discovery in the north and with the creation of the Frontier Exploration Funds, more exploration will be undertaken in the north. The Frontier Exploration Fund is funded by 30% of the NNPC Limited profit oil and gas and 10% of all rents on petroleum licenses and leases. 


Many states are facing debt and development issues and might wish to have more control and access to the natural resources in their states to fix their problems. More oil, gas, and other natural resources could be harnessed when state governments are given the right to control those resources. States will maximize their potential resources to outcompete each other. 


In the event of states' resource control, people ask, how could border states handle shared oil and gas fields that cross their borders? Just like the Kolmani oil and gas field, which straddles across Gombe and Bauchi states. Any state that produces more at the border areas may draw more oil from the neighboring state. So, who drills first captures the oil.


 To avoid over-production and damage to the environment at the border areas, the neighboring states should unify the oil field, appoint a single operator, and share the profit based on where the field lies in relation to the boundary. State governments in a geo-political zone could undertake this kind of unification. 


Even after states' resource control, further oil explorations will continue to search for more oil and gas reserves in the states that do not confirm their petroleum deposits yet. So, non-oil-producing states could become oil producers eventually. 


With oil fading away and growing restrictions on the use of fossil fuels, we can maximize the utilization of our endowed petroleum resources to build infrastructure and the economy and fund alternative energy sources and consumption. 


Finally, more oil reserves without growing and functioning refineries will not make any difference. The focus should be on functioning and adequate refineries locally to stop importing refined petroleum. Imported refined petroleum is the biggest bill in our import basket. Having local refineries will help restore the value of our exchange rates. Government refineries must be privatized as soon as possible, and modular refineries should be encouraged to grow their efficiencies and capacities. So, the discovery of oil and gas in the Kolmani area is not a given benefit; it is a potential benefit, so celebrate not yet. 


Ahmed Adamu, PhD

Petroleum Economist

[email protected]



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Oil Thief Bags Two Years in Port Harcourt

Oil Thief Bags Two Years in Port Harcourt

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Justice A. T. Mohammed of the Federal High Court sitting in Port Harcourt, Rivers State, has convicted and sentenced Rabiu Aliyu to two years imprisonment for illegal dealing in petroleum products, without an appropriate licence.

The convict was jailed after pleading guilty to a one-count charge, bordering on illegal dealing in petroleum products without authority and an appropriate licence, upon arraignment by the Port Harcourt Zonal Command of the Economic and Financial Crimes Commission EFCC.

The charge reads:"That you Rabiu Aliyu, on the 16th day of May, 2017 within the jurisdiction of this Honourable Court did without appropriate licence deal in about Thirty Three Thousand (33,000) litres of Automotive Gas Oil (AGO) and thereby committed an offence contrary to Section 1 (17) (a) of Miscellaneous Offences Act, Cap M17 of the Revised Edition, (Laws of the Federation of Nigeria) 2007 and punishable under Section 1 (17) (b) of the same Act"

In view of the plea of the defendant, prosecution counsel, Endeba Abiyesuku, prayed the court to convict and sentence him accordingly.

Counsel to the defendant, M. M. Suleiman did not oppose the prayers of the prosecution but prayed the court to temper justice with mercy.

Justice Mohammed convicted and sentenced the defendant to two years imprisonment with an option of fine of Two Hundred and Fifty Thousand Naira (N250, 000.00). He ordered the 33,000 litres of Automotive Gas Oil (AGO) arrested with the convict, to be forfeited to the Federal Republic of Nigeria and the Truck with registration number XA 538 BGW released to its owner.

Aliyu’s journey to the Correctional Facility started after he was arrested sometimes in 2017 by the Anti- Illegal Oil Bunkering patrol team of 6 Division, Nigerian Army, at Akala Olu Community, in Rivers State for illegal dealing in petroleum products.

The convict was also arrested alongside a DAF truck with registration XA 538 BGW loaded with products suspected to be Automotive Gas Oil (AGO) . He was thereafter handed over to EFCC for further investigation and prosecution.


Source: EFCC

Justice A. T. Mohammed of the Federal High Court sitting in Port Harcourt, Rivers State, has convicted and sentenced Rabiu Aliyu to two years imprisonment for illegal dealing in petroleum products, without an appropriate licence.

The convict was jailed after pleading guilty to a one-count charge, bordering on illegal dealing in petroleum products without authority and an appropriate licence, upon arraignment by the Port Harcourt Zonal Command of the Economic and Financial Crimes Commission EFCC.

The charge reads:"That you Rabiu Aliyu, on the 16th day of May, 2017 within the jurisdiction of this Honourable Court did without appropriate licence deal in about Thirty Three Thousand (33,000) litres of Automotive Gas Oil (AGO) and thereby committed an offence contrary to Section 1 (17) (a) of Miscellaneous Offences Act, Cap M17 of the Revised Edition, (Laws of the Federation of Nigeria) 2007 and punishable under Section 1 (17) (b) of the same Act"

In view of the plea of the defendant, prosecution counsel, Endeba Abiyesuku, prayed the court to convict and sentence him accordingly.

Counsel to the defendant, M. M. Suleiman did not oppose the prayers of the prosecution but prayed the court to temper justice with mercy.

Justice Mohammed convicted and sentenced the defendant to two years imprisonment with an option of fine of Two Hundred and Fifty Thousand Naira (N250, 000.00). He ordered the 33,000 litres of Automotive Gas Oil (AGO) arrested with the convict, to be forfeited to the Federal Republic of Nigeria and the Truck with registration number XA 538 BGW released to its owner.

Aliyu’s journey to the Correctional Facility started after he was arrested sometimes in 2017 by the Anti- Illegal Oil Bunkering patrol team of 6 Division, Nigerian Army, at Akala Olu Community, in Rivers State for illegal dealing in petroleum products.

The convict was also arrested alongside a DAF truck with registration XA 538 BGW loaded with products suspected to be Automotive Gas Oil (AGO) . He was thereafter handed over to EFCC for further investigation and prosecution.


Source: EFCC
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EFCC: Court Jails Four Oil Thieves In Port Harcourt

EFCC: Court Jails Four Oil Thieves In Port Harcourt

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Four oil thieves have been convicted and sentenced to different jail terms by Justice A.T. Mohammed of the Federal High Court sitting in Port Harcourt, Rivers State.

The convicts are: Ibrahim Mohammed; Abubakar Saidu, Magaji Inuwa and Godswill Goodluck Ahukanna. They were all convicted on Thursday August 5, 2021 on one- count separate charge for illegal dealing in petroleum products preferred against them by the Port Harcourt Zonal Command of the Economic and Financial Crimes Commission, EFCC.

One of the separate count-charge against reads:"That you Ibrahim Mohammed on about the 16th May, 2018, at Okirika, Okirika LGA, Rivers State, within the jurisdiction of this Honourable Court did deal in petroleum product, about 30,000 litres of Automotive Gas Oil (AGO) conveyed in an Iveco Tanker with registration no: Kano KMC 82 ZJ without an appropriate licence and thereby committed an offence contrary to Section 1(17)(a) & (b) of the Miscellaneous Offences Act, CAP M17 Laws of the Federation of Nigeria and punishable under Section 1(17)(b) of the same Act”.

Another separate count read: "That you Godswill Goodluck Ahukanna on or about the 31st day of October 2019 at Onne, Port Harcourt, Rivers State within the jurisdiction of this Honourable Court did deal in petroleum product to wit: 800 litres of Automotive Gas Oil contained and conveyed in four (4) drums which is not the quality for Automotive Gas Oil (AGO) and thereby committed an offence contrary to Section 1 (18) (a) (ii) of the Miscellaneous Offences Act CAP M17 of the Revised Edition (Laws of the Federation of Nigeria) 2007 and punishable under Section 1 (18)(a)(ii) of the Act"

Based on their pleas of “guilty”, prosecution counsel: I. Agu, E. K. Ebipade and K. W. Chukwuma, prayed the court to convict and sentence them accordingly. Defence counsel, A. M. Eyam, O. M. Ofordile, M. M. Suleiman and E. H. Eboh did not oppose the prosecution but prayed the court to temper justice with mercy.

Justice Mohammed convicted and sentenced Mohammed to two years imprisonment, with an option of fine of Three Hundred Thousand Naira (N300, 000.00) to be paid into the Federal Government Account. He ordered that the product conveyed in the Iveco truck tanker with registration no: KANO KMC82 ZJ be sounded and sold by the court and EFCC and the proceeds paid into the Consolidated Revenue Account of the Federation. He released the Iveco tanker with registration number: Kano KMC82 ZJ to the owner.

The judge convicted and sentenced Ahukanna to two years imprisonment with an option of fine of One Hundred and Fifty Thousand Naira (N150, 000.00). He also ordered that the product conveyed in a bus with registration number: RSH 914 AE be sold by the court and EFCC and the proceeds paid into the Consolidated Revenue Account of the Federation. He equally released the Ford bus with registration number: RSH 914 AE to the owner.

In the case of Saidu and Inuwa, the judge convicted and sentenced them to one year in prison, with an option of fine of Two Hundred Thousand Naira( N200,000). He ordered the release of trucks with registration: BRR 53 XA and MKA 247 ZB to their owners.

Additionally, all the convicts are to sign an undertaking of good behaviour before the court.

The convicts were arrested, sometimes in 2018 and 2019, by the Anti- Illegal Bunkering Patrol Team of 6 Division, Nigerian Army, at different locations in Port Harcourt, Rivers State, with different vehicles and trucks loaded with products suspected to be Automotive Gas Oil (AGO).

They were thereafter handed over to the EFCC for further investigation and prosecution.

Source; EFCC






Four oil thieves have been convicted and sentenced to different jail terms by Justice A.T. Mohammed of the Federal High Court sitting in Port Harcourt, Rivers State.

The convicts are: Ibrahim Mohammed; Abubakar Saidu, Magaji Inuwa and Godswill Goodluck Ahukanna. They were all convicted on Thursday August 5, 2021 on one- count separate charge for illegal dealing in petroleum products preferred against them by the Port Harcourt Zonal Command of the Economic and Financial Crimes Commission, EFCC.

One of the separate count-charge against reads:"That you Ibrahim Mohammed on about the 16th May, 2018, at Okirika, Okirika LGA, Rivers State, within the jurisdiction of this Honourable Court did deal in petroleum product, about 30,000 litres of Automotive Gas Oil (AGO) conveyed in an Iveco Tanker with registration no: Kano KMC 82 ZJ without an appropriate licence and thereby committed an offence contrary to Section 1(17)(a) & (b) of the Miscellaneous Offences Act, CAP M17 Laws of the Federation of Nigeria and punishable under Section 1(17)(b) of the same Act”.

Another separate count read: "That you Godswill Goodluck Ahukanna on or about the 31st day of October 2019 at Onne, Port Harcourt, Rivers State within the jurisdiction of this Honourable Court did deal in petroleum product to wit: 800 litres of Automotive Gas Oil contained and conveyed in four (4) drums which is not the quality for Automotive Gas Oil (AGO) and thereby committed an offence contrary to Section 1 (18) (a) (ii) of the Miscellaneous Offences Act CAP M17 of the Revised Edition (Laws of the Federation of Nigeria) 2007 and punishable under Section 1 (18)(a)(ii) of the Act"

Based on their pleas of “guilty”, prosecution counsel: I. Agu, E. K. Ebipade and K. W. Chukwuma, prayed the court to convict and sentence them accordingly. Defence counsel, A. M. Eyam, O. M. Ofordile, M. M. Suleiman and E. H. Eboh did not oppose the prosecution but prayed the court to temper justice with mercy.

Justice Mohammed convicted and sentenced Mohammed to two years imprisonment, with an option of fine of Three Hundred Thousand Naira (N300, 000.00) to be paid into the Federal Government Account. He ordered that the product conveyed in the Iveco truck tanker with registration no: KANO KMC82 ZJ be sounded and sold by the court and EFCC and the proceeds paid into the Consolidated Revenue Account of the Federation. He released the Iveco tanker with registration number: Kano KMC82 ZJ to the owner.

The judge convicted and sentenced Ahukanna to two years imprisonment with an option of fine of One Hundred and Fifty Thousand Naira (N150, 000.00). He also ordered that the product conveyed in a bus with registration number: RSH 914 AE be sold by the court and EFCC and the proceeds paid into the Consolidated Revenue Account of the Federation. He equally released the Ford bus with registration number: RSH 914 AE to the owner.

In the case of Saidu and Inuwa, the judge convicted and sentenced them to one year in prison, with an option of fine of Two Hundred Thousand Naira( N200,000). He ordered the release of trucks with registration: BRR 53 XA and MKA 247 ZB to their owners.

Additionally, all the convicts are to sign an undertaking of good behaviour before the court.

The convicts were arrested, sometimes in 2018 and 2019, by the Anti- Illegal Bunkering Patrol Team of 6 Division, Nigerian Army, at different locations in Port Harcourt, Rivers State, with different vehicles and trucks loaded with products suspected to be Automotive Gas Oil (AGO).

They were thereafter handed over to the EFCC for further investigation and prosecution.

Source; EFCC






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Why and How Crude Oil Prices Hit 7-Week High On Demand Optimism?

Why and How Crude Oil Prices Hit 7-Week High On Demand Optimism?

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The crude oil price is higher in the Asian session as lower inventories and renewed demand optimism offset a stronger US Dollar.


Front-month WTi futures trading on Nymex, are higher by $0.76 to $66.46. The oil market is looking past an upcoming production increase at OPEC, choosing to instead focus on economic re-openings in Europe,for trading cues.


Given the stronger US Dollar, after a hawkish statement from Fed Chair turned Treasury Secretary Janet Yellen, the pressure was on for the American Petroleum Institute to deliver on the weekly Crude oil inventory data to save steep losses in the crude oil price. And deliver it did, reporting a much larger-than-expected drawdown in inventories of 7.688 million barrels.


Yellen sent shockwaves through risk assets earlier in the day, stating:

“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat,”.


Whilst the Treasury head was quick to walk back that statement later in the day. It did little to improve the risk-off sentiment that rattled the broader market.

Charts by Yahoo Finance



The crude oil price is now trading at levels not seen since March 15th and technically may have more room to go. A move above the March 9th high of $67.98 clears the path for the crude oil price to re-visit pre covid levels.


Crude Oil Price Technical Outlook

Whilst the recent extension is looking a little stretched on the short-dated charts. The daily chart points to a growing likelihood of a run at the October 2020 high of $76.90 and an increase of +15.50% from here.


However, traders should keep a close eye on signs of a reversal in the US Dollar Index. The heavily shorted Greenback has been on a one-way ticket lower for the last 6 weeks as the world embraces the reflation trade. Any sharp snap-back for the Dollar may be enough to put a lid on Crude prices.


Failing that, we expect momentum buying through $68.00 to push the Crude oil Price to fresh 2021 highs.


An ascending trend line at $6240 (in place from the November $33.32 low) offers support. Closely followed by the 50-Day Moving average at $62.40. A break of these support levels would negate the immediately bullish outlook.


Crude Oil Daily Chart




Source




The crude oil price is higher in the Asian session as lower inventories and renewed demand optimism offset a stronger US Dollar.


Front-month WTi futures trading on Nymex, are higher by $0.76 to $66.46. The oil market is looking past an upcoming production increase at OPEC, choosing to instead focus on economic re-openings in Europe,for trading cues.


Given the stronger US Dollar, after a hawkish statement from Fed Chair turned Treasury Secretary Janet Yellen, the pressure was on for the American Petroleum Institute to deliver on the weekly Crude oil inventory data to save steep losses in the crude oil price. And deliver it did, reporting a much larger-than-expected drawdown in inventories of 7.688 million barrels.


Yellen sent shockwaves through risk assets earlier in the day, stating:

“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat,”.


Whilst the Treasury head was quick to walk back that statement later in the day. It did little to improve the risk-off sentiment that rattled the broader market.

Charts by Yahoo Finance



The crude oil price is now trading at levels not seen since March 15th and technically may have more room to go. A move above the March 9th high of $67.98 clears the path for the crude oil price to re-visit pre covid levels.


Crude Oil Price Technical Outlook

Whilst the recent extension is looking a little stretched on the short-dated charts. The daily chart points to a growing likelihood of a run at the October 2020 high of $76.90 and an increase of +15.50% from here.


However, traders should keep a close eye on signs of a reversal in the US Dollar Index. The heavily shorted Greenback has been on a one-way ticket lower for the last 6 weeks as the world embraces the reflation trade. Any sharp snap-back for the Dollar may be enough to put a lid on Crude prices.


Failing that, we expect momentum buying through $68.00 to push the Crude oil Price to fresh 2021 highs.


An ascending trend line at $6240 (in place from the November $33.32 low) offers support. Closely followed by the 50-Day Moving average at $62.40. A break of these support levels would negate the immediately bullish outlook.


Crude Oil Daily Chart




Source



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NIGERIA'S BUDGETARY BENCHMARK AS CRUDE OIL PRICE SURPASSES $65 A BARREL

NIGERIA'S BUDGETARY BENCHMARK AS CRUDE OIL PRICE SURPASSES $65 A BARREL

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Oil Prices Rally Towards $70 As Demand Outlook Improves



"Oil surpassed $65 a barrel, the highest since mid-March, as signs of strengthening demand from the U.S. to China stoked optimism that key markets ARE turning a corner in their recovery from the pandemic. West Texas Intermediate (WTI) rose $1.15 to settle at $65.01 a barrel. Brent for June settlement gained $1.29 to end the session at $68.56 a barrel. Both benchmarks posted the largest daily gain in over two weeks, settling at the highest level since March 15"- Bloomberg.

***********************************************

This latest rally of crude price should give Nigeria little respite. Our budget benchmark stands at $40/barrel. Fortunately, the rise in crude oil price means our Excess Crude Account will have some inflow from now.


Agreed, OPEC production cuts affected the country badly with our daily output pegged at around 1.4 Million Barrels per day. But if our leaders can adopt a belt tightening fiscal approach and ensure transparency in their processes and every form of opacity in the system blocked, there is a silver lining in the horizon.


It looks like eyes are on global crude oil demand presently. United States a major consumer is seeing many states ease restrictions and the opportunity for summer travel, and therefore petroleum demand will increase and have a significant rebound. If United States sets the pace and reopens, the hope is other countries will surely follow and the crude oil price will keep rising.


Hopefully, we will see the end of Covid-19 anytime soon when we are all vaccinated globally against the scourge.


#justscribblingmythoughts

Femi Ogunsanwo


Oil Prices Rally Towards $70 As Demand Outlook Improves


According to report and analysis on Oilprice.com by Irina Slav, Crude oil prices got a major boost this week thanks to optimistic expectations about demand from OPEC+ and rebalancing fuel inventories in the United States.

Brent jumped to over $68 per barrel, and West Texas Intermediate neared $65 per barrel by the middle of the week and could rise even further unless headwinds appear.

Earlier in the week, OPEC+ forecast that oil demand this year would increase by 5.95 million bpd. This was an upward revision of 70,000 bpd from an earlier projection, and this fact injected optimism in traders, as did OPEC+'s decision to forego a meeting this week and keep producing at previously agreed rates.


Meanwhile, the U.S. Energy Information Administration reported on Wednesday that crude oil inventories are within the five-year average for the season—for the first time in months—and that middle distillate inventories were down by a sizeable 3.3 million barrels last week.


Middle distillates, mainly diesel, have been a headache for refiners during the pandemic as inventories reached excessive levels due to the slowdown in various activities involving freight transport. Now, businesses are returning to normal operation, according to the data, and demand for diesel is picking up.


"Between planting season and online truck deliveries, you have a nice number in the diesel," Bob Yawger, energy futures director at Mizuho, said as quoted by Reuters. "Planting season is doing wonders for the distillate market."


It seems the latest fuel demand developments in the United States were enough to eclipse earlier worry about Indian fuel demand amid a resurgence of infections there.


"There's a lot of green shoots in demand," according to Matt Sallee, portfolio manager at asset manager TortoiseEcofin, as quoted by Bloomberg. According to him, the situation in India is "clearly a headwind, but looking at what's going on in the U.S., it's a completely different story."


"The market expects a major revitalization for global oil demand from this summer onwards," Rystad Energy's head of oil markets Bjornar Tonhaugen told Bloomberg. "As vaccination campaigns progress and as lockdowns are set to soon be lifted in Europe and other recovering economies, the need for road and jet fuels will increase and the result will be felt."


Indeed, optimism appears to be on the rise. Goldman Sachs, which has been particularly bullish on oil, has stuck to its forecast that Brent could hit $80 a barrel in the second half of this year. The investment bank also said in a new note that it expected global oil demand to book its strongest rebound ever over the next six months.


At 5.2 million bpd, according to Goldman, the demand jump will be the result of accelerating vaccinations in Europe, which would, in turn, lead to greater demand for travel. This will also lead to an uptick in jet fuel demand—the worst hit segment of the fuel industry—to the tune of 1.5 million bpd, according to the investment bank.


If the rally continues as forecast, it will provide a much-needed breathing space for the Persian Gulf's oil-dependent economies, most of which need Brent to trade much higher than current prices to avoid another budget deficit. A price of $70 per barrel of the most traded benchmark may be high enough for some, such as Saudi Arabia. Still, others, notably Bahrain, need oil at $100 per barrel to make their budget ends meet.


At the same time, however, it would undermine calls for a green recovery from the pandemic. The IEA has already warned that emissions are once again on the rise after last year's lull because of lockdowns. The rebound in oil demand that banks and analysts expect appears to be proof that the transition to all-electric transport might be more challenging than some hope.

Oil Prices Rally Towards $70 As Demand Outlook Improves



"Oil surpassed $65 a barrel, the highest since mid-March, as signs of strengthening demand from the U.S. to China stoked optimism that key markets ARE turning a corner in their recovery from the pandemic. West Texas Intermediate (WTI) rose $1.15 to settle at $65.01 a barrel. Brent for June settlement gained $1.29 to end the session at $68.56 a barrel. Both benchmarks posted the largest daily gain in over two weeks, settling at the highest level since March 15"- Bloomberg.

***********************************************

This latest rally of crude price should give Nigeria little respite. Our budget benchmark stands at $40/barrel. Fortunately, the rise in crude oil price means our Excess Crude Account will have some inflow from now.


Agreed, OPEC production cuts affected the country badly with our daily output pegged at around 1.4 Million Barrels per day. But if our leaders can adopt a belt tightening fiscal approach and ensure transparency in their processes and every form of opacity in the system blocked, there is a silver lining in the horizon.


It looks like eyes are on global crude oil demand presently. United States a major consumer is seeing many states ease restrictions and the opportunity for summer travel, and therefore petroleum demand will increase and have a significant rebound. If United States sets the pace and reopens, the hope is other countries will surely follow and the crude oil price will keep rising.


Hopefully, we will see the end of Covid-19 anytime soon when we are all vaccinated globally against the scourge.


#justscribblingmythoughts

Femi Ogunsanwo


Oil Prices Rally Towards $70 As Demand Outlook Improves


According to report and analysis on Oilprice.com by Irina Slav, Crude oil prices got a major boost this week thanks to optimistic expectations about demand from OPEC+ and rebalancing fuel inventories in the United States.

Brent jumped to over $68 per barrel, and West Texas Intermediate neared $65 per barrel by the middle of the week and could rise even further unless headwinds appear.

Earlier in the week, OPEC+ forecast that oil demand this year would increase by 5.95 million bpd. This was an upward revision of 70,000 bpd from an earlier projection, and this fact injected optimism in traders, as did OPEC+'s decision to forego a meeting this week and keep producing at previously agreed rates.


Meanwhile, the U.S. Energy Information Administration reported on Wednesday that crude oil inventories are within the five-year average for the season—for the first time in months—and that middle distillate inventories were down by a sizeable 3.3 million barrels last week.


Middle distillates, mainly diesel, have been a headache for refiners during the pandemic as inventories reached excessive levels due to the slowdown in various activities involving freight transport. Now, businesses are returning to normal operation, according to the data, and demand for diesel is picking up.


"Between planting season and online truck deliveries, you have a nice number in the diesel," Bob Yawger, energy futures director at Mizuho, said as quoted by Reuters. "Planting season is doing wonders for the distillate market."


It seems the latest fuel demand developments in the United States were enough to eclipse earlier worry about Indian fuel demand amid a resurgence of infections there.


"There's a lot of green shoots in demand," according to Matt Sallee, portfolio manager at asset manager TortoiseEcofin, as quoted by Bloomberg. According to him, the situation in India is "clearly a headwind, but looking at what's going on in the U.S., it's a completely different story."


"The market expects a major revitalization for global oil demand from this summer onwards," Rystad Energy's head of oil markets Bjornar Tonhaugen told Bloomberg. "As vaccination campaigns progress and as lockdowns are set to soon be lifted in Europe and other recovering economies, the need for road and jet fuels will increase and the result will be felt."


Indeed, optimism appears to be on the rise. Goldman Sachs, which has been particularly bullish on oil, has stuck to its forecast that Brent could hit $80 a barrel in the second half of this year. The investment bank also said in a new note that it expected global oil demand to book its strongest rebound ever over the next six months.


At 5.2 million bpd, according to Goldman, the demand jump will be the result of accelerating vaccinations in Europe, which would, in turn, lead to greater demand for travel. This will also lead to an uptick in jet fuel demand—the worst hit segment of the fuel industry—to the tune of 1.5 million bpd, according to the investment bank.


If the rally continues as forecast, it will provide a much-needed breathing space for the Persian Gulf's oil-dependent economies, most of which need Brent to trade much higher than current prices to avoid another budget deficit. A price of $70 per barrel of the most traded benchmark may be high enough for some, such as Saudi Arabia. Still, others, notably Bahrain, need oil at $100 per barrel to make their budget ends meet.


At the same time, however, it would undermine calls for a green recovery from the pandemic. The IEA has already warned that emissions are once again on the rise after last year's lull because of lockdowns. The rebound in oil demand that banks and analysts expect appears to be proof that the transition to all-electric transport might be more challenging than some hope.

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