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☆ Aliko Dangote’s mission to build Africa’s largest oil refinery
▼ + stars: | 2024-06-05 | by ( Jackelyn Prager | Jackie Prager | ) edition.cnn.com time to read: +6 min

CNN —Over the past eight years, Aliko Dangote, Africa’s richest man, has built one of the world’s largest oil refineries. Nigeria is one of Africa’s largest oil producers, yet the country has lacked the capability to refine its oil forcing it to rely on imported fuel. Aliko Dangote walks CNN's Eleni Giokos through his oil refinery in Lekki, Nigeria. Did it make economic sense at the time to build a cement plant and compete effectively with imported cement prices? Video Ad Feedback A rare look inside Africa’s largest oil refinery 23:00 - Source: CNNCNN: So how are imports affecting industrialization and local growth of value chains?

Persons: Aliko, I’ve, ”, CNN’s Eleni Giokos, they’ve, Dangote, CNN's Eleni Giokos, we’re, you’ve Organizations: CNN, Dangote Industries Ltd, National Petroleum Corporation, CNN CNN, Obajana, Dangote Cement, Continental Free Trade Area Locations: Lagos, Nigeria, Lekki, India, Dangote, Saharan Africa, Kogi State, Egypt, American, Africa

“This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta,” Zoe Yujnovich, Shell’s integrated gas and upstream director, said in a statement. The assets that Shell is selling are largely owned by the Nigerian government’s national oil company NNPC, which holds a 55% stake. However, pollution from oil and natural gas production has prevented residents from accessing clean water, hurt farming and fishing, and heightened tensions. Despite joint military operations and a government benefits program for former militants that accompanied the amnesty deal, the Niger Delta remains volatile. The oil industry faces risks of violence, including pipeline vandalism by oil thieves, whom companies often blame for oil spills.

Persons: — Shell, Shell, Zoe Yujnovich, France's TotalEnergies, ”, Ledum Mitee, Dumnamene Organizations: Shell, Aradel Energy, Nigerian, Eni, Movement, Ogoni, Youths, Environmental Advocacy, AP Locations: ABUJA, Nigeria, Niger Delta, West, London, Ogoni People, Niger, Guinea

ABUJA, Nigeria (AP) — Africa’s biggest oil refinery has begun production in Nigeria, the company has said, ending a yearslong wait for a plant that analysts said Monday could boost refining capacity in a region heavily reliant on imported petroleum products. The $19 billion facility, which has a capacity to produce 650,000 barrels per day, has started to produce diesel and aviation fuel, the Dangote Petroleum Refinery company reported Saturday. As Nigeria’s first privately owned oil refinery, the project "is a game-changer for our country,” it added. Nigeria is one of Africa’s top oil producers but imports refined petroleum products for its own use. At least 40% of the oil products made there also would be available for export, the company said,.

Persons: —, Nigeria’s, Olufola, Aliko, Dangote Organizations: Dangote Petroleum Refinery, NNPC Locations: ABUJA, Nigeria, Lagos

☆ Nigeria restores 275,000 bpd production at TotalEnergies JV
▼ + stars: | 2023-11-12 | by ( Camillus Eboh | ) www.reuters.com time to read: +2 min

A logo of TotalEnergies is seen at an electric vehicle fuelling station in the La Defense business district in Courbevoie near Paris, France, February 8, 2023. "The unions have agreed to suspend ongoing industrial action leading to immediate restoration of 275,000 barrels of oil per day production," NNPC said. NNPC did not disclose the nature of the dispute or the workers' demands, which had not been previously announced. Nigeria's oil production stood at 1.49 million barrels per day in October, according to data from the petroleum regulator, still below the 2023 budget target of 1.69 million bpd. That has led to fears that NNPC may struggle to supply crude to the 650,000 bpd Dangote Refinery, which has missed several targets to start production.

Persons: Sarah Meyssonnier, NNPC, Camillus, Giles Elgood Organizations: La Defense, REUTERS, Rights, NNPC, Petroleum, Natural Gas Senior Staff Association, Nigerian Union of Petroleum, Natural Gas Workers, Dangote, Reuters, Thomson Locations: Courbevoie, Paris, France, Rights ABUJA, TotalEnergies

☆ Nigeria turns to natural gas for fuel as petrol prices rise after subsidy removal
▼ + stars: | 2023-08-03 | by ( Macdonald Dzirutwe | ) www.reuters.com time to read: +2 min

REUTERS/Afolabi Sotunde/File PhotoLAGOS, Aug 3 (Reuters) - Nigeria is turning to gas as an alternative fuel after it scrapped a popular but costly subsidy on petrol that has seen pump prices rise sharply, angering motorists and businesses that use petrol to generate their own power. State-oil firm NNPC said late on Thursday it has partnered with NIPCO Gas to speed up the adoption of compressed natural gas for buses, cars and tricycles to lower transportation costs. Under the NNPC-NIPCO deal, 35 compressed natural gas stations will be rolled out in phases to be completed next year and will be able to serve more than 200,000 vehicles daily. NIPCO already operates 14 compressed natural gas stations, NNPC said, and that the local firm has turned more than 7,000 vehicles to gas, it said. Last month, NNPC signed an agreement with UTM Offshore for the local company to construct a 1.5 metric tonnes per annum floating liquefied natural gas plant.

Persons: Afolabi, NNPC, Bola Tinubu, Tinubu, MacDonald Dzirutwe, Chijioke, Grant McCool Organizations: REUTERS, NIPCO Gas, Offshore, Thomson Locations: Abuja, Nigeria, LAGOS, State, Africa's

Meanwhile, the black market for smuggled subsidised Nigerian fuel in Togo and neighbouring Benin and Cameroon has collapsed, further reducing demand for shipments via Nigeria. Average monthly West African (WAF) gasoline imports fell by 56% in the second quarter compared with the first, according to Refinitiv Eikon data. "The key point is demand from West Africa is drying up," said Refinitiv Lead Oil Analyst Raj Rajendran. There may simply be a baseline decrease in demand," said Sparta Commodities gasoline market analyst Philip Jones-Lux. The challenge is coming from the new refineries in the Middle East that are expanding from their traditional East Africa market to now include West Africa and beyond even to the Americas," Rajendran said.

Persons: Bola Tinubu, Jeremy Parker, Raj, naira, Philip Jones, Jones, Lux, Rajendran, Shadia, Barbara Lewis Organizations: Nigeria's, West, ARA, Reuters Graphics, Sparta Commodities, Thomson Locations: Africa, Nigeria, North America, West Africa, Europe, United States, Asia, Ukraine, Togo, Benin, Cameroon, Amsterdam, Rotterdam, Antwerp, Sparta, Mideast, Russia, European, East Africa

☆ Nigeria's cost-of-living crisis is getting worse daily after an 'abrupt' fuel hike
▼ + stars: | 2023-07-07 | by ( Nimi Princewill | ) edition.cnn.com time to read: +9 min

“The hike in fuel price has caused a scarcity of passengers,” Hanwa, 50, added. “Before the hike in fuel price, Abuja to Kano was 5,500 ($7.26) but is now 8,500 ($11.22),” he said. Successive governments had carried on with fuel subsidy since its introduction in the 1970s but had also mooted deregulating the country’s oil sector. Along with soaring transport fares, food prices and costs for other essentials have skyrocketed across the country. Economist Bismarck Rewane agrees that halting fuel subsidy “makes economic sense,” but mentions that the saved proceeds from the scheme must be ploughed back into bettering the lives of Nigerians.

Persons: Hanwa, ”, ” Hanwa, Jume Hanwa, Nimi Princewill, Bola Tinubu, Tinubu, Usman Imam, “, Sam Amadi, ” Amadi, ” Fabian Grace, Grace, who’s, Fabian Grace, ” Grace, “ I’ve, I’m, Bismarck Rewane, ” Rewane Organizations: Nigeria CNN —, CNN, CNN Transport, National Petroleum Corporation, ” Travelers, Usman, Abuja School of Social Locations: Abuja, Nigeria, Nigeria’s, Nimi, Kano, Africa’s, Maraba, Nasarawa State, Edo State

☆ As Nigeria scraps fuel subsidy, a vibrant black market collapses
▼ + stars: | 2023-06-26 | by ( Desire Danga Essigue | ) www.reuters.com time to read: +4 min

Since Nigeria scrapped a state fuel subsidy on May 31, black market fuel vendors and commercial drivers in Cameroon, Benin and Togo who were heavily reliant on petrol smuggled from Nigeria have seen their businesses collapse. With supplies dwindling, queues have been forming at official petrol stations, where fuel is now competitively priced. "Supply has become scarce and customers think we're ripping them off with this high price, yet it's from Nigeria that prices have soared," said Perevet Dieudonne, a black market seller. The trade in black market fuel is so central to the local economy that authorities either turn a blind eye or are complicit. At Hilacondji, a border crossing between Togo and Benin, some black market fuel stalls were shut, while at others vendors waited among rows of empty plastic jerricans for potential deliveries.

Persons: Danga, turvy, Perevet Dieudonne, Ousmanou Mal Djoulde, Ayi Hilla, Alice Lawson, Pulcherie, Amindeh Blaise Atabong, Elisha Bala, MacDonald Dzirutwe, Estelle Shirbon, Bate Felix, Elaine Hardcastle Organizations: REUTERS, CFA, Reuters, Dangote Petroleum, United Nations, Thomson Locations: Garoua, Cameroon, GAROUA, West, Nigeria, Benin, Togo, Nigerian, West Africa, Dangote, Hilacondji, Africa, Cotonou, Pulcherie Adjoha

As part of those reforms, Nigeria, Africa's top oil producer, plans to scrap an old scheme by which it swaps its crude for gasoline imports. We are getting our swaps crude cargo in October at the earliest," one major player said. Nigeria's falling oil production has exacerbated the country's fiscal problems, because it reduces the revenue that could be used to repay debt. PRIVATE IMPORTERSPaying for fuel deliveries with crude cargoes means there is less crude for Nigeria and NNPC's to export, and so less revenue. International monetary experts have long suggested Nigeria remove fuel subsidies and liberalise its foreign exchange to address its fiscal crisis.

Persons: Bola Tinubu, Mele Kyari, Kyari, NNPC, Tinubu, Aliko, Nigeria's, Julia Payne, Dmitry Zhdannikov, Libby George, Dzirutwe MacDonald, David Evans Organizations: Reuters, NNPC, Thomson Locations: BRUSSELS, LONDON, Nigeria

ABUJA, June 4 (Reuters) - Nigeria's state oil firm NNPC Ltd is winding down crude swap contracts with traders and will pay cash for gasoline imports, its chief executive told Reuters, adding that private companies could begin importing petrol as soon as this month. And we now have an arm's-length process where we can pay cash for the imports," Kyari told Reuters in an interview late on Saturday. This is the first time NNPC has said it is terminating crude swap contracts. In its report detailing March crude oil loadings, NNPC also allocated crude to the swap contracts held by the consortiums. Nigeria has struggled to meet its OPEC oil quota of 1.742 million bpd due to grand oil theft and illegal refining.

Persons: Bola Tinubu's, Tinubu, NNPC, Kyari, MacDonald Dzirutwe, Camillus Eboh, Julia Payne, Susan Fenton Organizations: NNPC, Reuters, Dangote Refinery, Thomson Locations: ABUJA, Nigeria, Ukraine, Dangote, NNPC, Vienna

ABUJA, June 2 (Reuters) - Nigeria's main labour union said on Friday it plans to go on strike from Wednesday to protest against a tripling of fuel prices in what would be the first big test for new President Bola Tinubu after he scrapped a costly fuel subsidy. The price increase has led to a sharp rise in transport fares and Estonian ride-hailing and food delivery startup Bolt said it had hiked its prices in Nigeria, citing increased operating costs due to higher fuel prices. Nigeria's fuel subsidy cost the government billions of dollars annually but was popular as it helped keep prices low in Africa's biggest oil producer, which is still grappling with high poverty rates among residents. But Nigerian Labour Congress (NLC) president Joe Ajaero, after an emergency meeting of the union's executive council in Abuja, said the state oil company NNPC should reverse the price hike. On Friday, the president said Nigeria needs to review its minimum wage of 30,000 naira ($65).

Persons: Bola Tinubu, Bolt, Joe Ajaero, Ajaero, MacDonald Dzirutwe, Kirsten Donovan, Angus MacSwan, Aurora Ellis Organizations: Nigerian Bureau, Statistics, World Bank, Labour Congress, Nigeria Labour Congress, Wednesday, Thomson Locations: ABUJA, Nigeria, Abuja

☆ Nigeria: Fuel prices triple as new leader Tinubu ends subsidy
▼ + stars: | 2023-06-01 | by ( Nimi Princewill | ) edition.cnn.com time to read: +4 min

In a seemingly off-the-cuff remark during his inaugural speech Monday, Tinubu declared, “the fuel subsidy is gone,” adding that it was unsustainable. The last time the government tried to remove fuel subsidies in 2012, it sparked nationwide protests. Fuel subsidies are a drain on public finances and many argue that they have led to widespread abuse and corruption. Previous governments have tried unsuccessfully to remove the fuel subsidy, which has kept gas prices artificially low, although they have steadily climbed through the years. Fuel subsidies were not sustainable, but ending them “abruptly” without provision for economic and social consequences was “reckless,” he added.

Persons: Bola Tinubu, Tinubu, “, Joe Ajaero, Goodluck Jonathan, Sam Amadi, ” Amadi, NNPC Organizations: Nigeria CNN —, CNN, National Petroleum Corporation, Nigeria’s Labour Congress, Occupy, Abuja School of Social, ” Locations: Abuja, Nigeria, Africa’s, State, Occupy Nigeria

☆ Nigeria to commission Dangote refinery, crude supply a concern
▼ + stars: | 2023-05-22 | by ( Macdonald Dzirutwe | ) www.reuters.com time to read: +3 min

Despite being Africa's biggest oil producer, Nigeria imports petrol, diesel and processed petroleum products because its refineries were run down over the years. The refinery needs a constant supply of crude but Nigeria's oil production has been declining due to oil theft, vandalism of pipelines and underinvestment. Lower production would affect state-owned oil company NNPC Ltd's ability to fulfil an agreement to supply Dangote refinery with 300,000 bpd of crude, said economist Kelvin Emmanuel, who authored a report on oil theft last year. "There are risks with supply of crude oil feedstock. Energy Aspects, however, said in the long run, the Dangote refinery could end Nigeria's gasoline deficit, reshape the Atlantic basin gasoline market and export diesel that meets European Union specifications.

Abuja, Nigeria CNN —Nigeria was forced Wednesday to delay plans to replace its banknotes with a redesigned currency after chaotic scenes at ATMs as millions of people struggled to get their hands on the new cash. The new naira notes are, however, “fortified with security features that make them difficult to counterfeit,” President Buhari said last year. Across the country, banks have increasingly become targets of mounting anger over the frustrating search for the new naira notes. Angry Nigerians vandalise Bank premises over frenzy of new naira notes. Nigerians are desperately relying on their banks to distribute new bills after the February 10 deadline to exchange the old currency saw many scrambling to deposit their old notes.

☆ Exclusive: Equinor joins Western oil firms' retreat from Nigeria -sources
▼ + stars: | 2023-01-25 | by ( Ron Bousso | ) www.reuters.com time to read: +3 min

The company has hired investment bank Standard Chartered to run the sale process, which could raise up to $1 billion, the sources said. Several Western oil giants including Exxon Mobil (XOM.N), Shell (SHEL.L) and TotalEnergies (TTEF.PA), are seeking to exit or scale back their presence in Nigeria, particularly in onshore operations which have been plagued by theft and devastating spills for years. Equinor's exit is part of the company's efforts to focus on newer and more profitable assets, the sources said. Nigeria's offshore oil and gas operations remain lucrative due to their larger scale, better security and attractive financial terms offered by the government. Operations outside Norway account for around a third of the company's total oil and gas production.

☆ Shell investigates in Nigeria after report of nine-year oil theft
▼ + stars: | 2022-10-12 | by ( Patrick Werr | ) www.reuters.com time to read: +1 min

LAGOS, Oct 12 (Reuters) - Oil major Shell's (SHEL.L) Nigerian subsidiary is investigating reports that an illegal oil tap ran for nine years on a pipeline it operates, a spokesperson said on Wednesday. An NNPC spokesman said on Sunday the theft point extended from the Trans Escravos pipeline and that the Afremo platform, operated by the Shell Petroleum Development Company of Nigeria (SPDC), was the suspected exit point of the stolen crude. or any unauthorised use of the equipment on it," an SPDC spokesperson said in an email. Large-scale theft from Nigeria's pipelines has throttled exports, forced some companies to shut in production and crippled the country's finances. Register now for FREE unlimited access to Reuters.com RegisterReporting By Libby George; editing by Barbara LewisOur Standards: The Thomson Reuters Trust Principles.

An oil slick is seen on Santa Barbara creek, following an oil spill in Nembe, Bayelsa, Nigeria, November 25, 2021. "Hundreds of thousands of people (in Benin) organize their survival around this traffic," Boris Houenou, a Beninois economist said of the smuggling of Nigerian gasoline. NNPC recorded gasoline deliveries of 90 million litres a day in March and 83 million in April, Reuters calculations showed. 'CURIOUS CASE'Although the Nigerian government announced plans to remove the gasoline subsidy last year, it then backtracked in July, citing concerns over potential social unrest. And although gasoline is subsidised, the amount ordinary Nigerians pay at the pump remains higher than the set price.

☆ Factbox: Mixed fortunes for producers as petrodollars flow
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +6 min

Data on Saudi Arabia, Russia, Nigeria and Iraq shows how not all the big producers are cashing in on the oil price bonanza. In February 2022, oil and gas sales were $1.26 billion but NNPC remitted $0 in March. RUSSIARussia's oil and gas budget revenues in January-August increased by 43% compared with a year ago, providing authorities with room to step up public spending aimed at limiting the impact of sweeping Western sanctions. In January-August, Russia's oil and gas revenues totalled 7.3 trillion roubles ($121,7 billion), or 82% of such revenues it envisaged for 2022. But in July-August, oil and gas revenues fell year on year.

☆ Portugal says could face shortage if Nigeria does not deliver all LNG due
▼ + stars: | 2022-09-19 | by ( Sergio Goncalves | ) www.reuters.com time to read: +2 min

LISBON, Sept 19 (Reuters) - Portugal could face supply problems this winter if Nigeria does not deliver all the liquefied natural gas (LNG) it is due to, the European Union country's environment and energy minister said on Monday. Register now for FREE unlimited access to Reuters.com RegisterCordeiro did not say what would prevent Nigeria supplying the LNG it was contracted to. Oil and gas output in Nigeria has been throttled by theft and vandalism of pipelines, leaving gas producer Nigeria LNG Ltd's terminal at Bonny Island operating at 60% capacity. Nigeria LNG, which is owned by state-oil company NNPC Ltd, Shell (SHEL.L), TotalEnergies (TTEF.PA) and Eni (ENI.MI), did not immediately respond to a request for comment. read morePortugal last year imported 2.8 billion cubic meters of LNG from Nigeria, or 49.5% of total imports, while the United States was the second-largest supplier with a share of 33.3%.

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