S&P Affirms Nigeria's Credit Ratings, Cites Fiscal and External Balances

http://www.bloomberg.com/news/2010-11-02/s-p-affirms-nigeria-s-credit-ratings-cites-fiscal-and-external-balances.html

Standard & Poor’s Ratings Services affirmed its ‘B+’ long-term rating on Nigeria, Africa’s most populous nation and top oil producer, with a stable outlook before a $500 million Eurobond sale next month.

The agency also affirmed its ‘B’ short-term foreign and local currency sovereign credit ratings on the West African nation, it said in a statement today.

“The outlook is stable, reflecting our expectation that Nigeria will maintain its strong external and fiscal balance sheet and that its budgetary performance will gradually improve over the next few years,” it said.

The announcement “will help to allay the concern of potential investors in Nigeria’s Eurobond,” especially after Fitch Ratings cut its outlook on the country to negative from stable on Oct. 22, said Bismarck Rewane, chief executive officer of Financial Derivatives Co. Ltd., a fund manager.

Nigeria plans to appoint bookrunners next week for its first-ever Eurobond sale, planned for mid-December, Abraham Nwankwo, director general of the Debt Management Office, said today.

“The ratings on Nigeria are constrained by high political risk, but supported by a strong balance sheet,” Standard & Poor’s said in the statement.

Elections

The nation of about 150 million people is scheduled to hold general elections in April in which incumbent President Goodluck Jonathan, from the mainly Christian south, has said he will run. Politicians from the predominantly Muslim north say that decision runs counter to an agreement by the ruling People’s Democratic Party to reserve the office for the region until 2015. Jonathan stepped in to the office after the death of former President Umaru Yar’Adua, a northern Muslim, on May 5.

Fitch Ratings lowered its outlook on Nigeria’s BB- rating to “negative” on Oct. 22, concerned about withdrawals from the excess crude account and a drop in foreign currency reserves. The decline in reserves increased the risk to the economy from any renewed drop in oil prices, Fitch said.

Nigeria’s foreign-exchange reserves fell 7.6 percent to $33.9 billion in the month to Oct. 21, according to data on the website of the Central Bank of Nigeria.

Nigeria’s economy, the second-biggest on the continent after South Africa, is expected to grow 7.8 percent in 2010, up from 7 percent last year, driven by non-oil industries such as agriculture, central bank Governor Lamido Sanusi said on Sept. 21.

To contact the reporter on this story: Paul Okolo in Abuja pokolo@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.

Opec: Cartel’s power set to increase as stocks decline

http://www.ft.com/cms/s/0/6d128418-e2e8-11df-9735-00144feabdc0.html

By David Blair

Published: October 29 2010 16:38 | Last updated: October 29 2010 16:38

Opec’s gleaming new headquarters in Vienna strives to project an image of confidence in the future and benign concern for the health of the world economy.

“An efficient and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital,” reads the organisation’s mission statement.

Five decades after it was founded in Baghdad in September 1960, Opec’s unmistakable self-confidence is largely justified. The cartel demonstrated its power over the oil market in December 2008 by deciding to cut production by 4.2m b/d, causing prices to double from a low of just over $30 a barrel.

They eventually reached their present level of about $80, which most Opec member states regard as ideal.

The decision, announced at a meeting of oil ministers in Algeria, was described as the “best ever taken” by Abdalla El-Badri, Opec’s secretary-general. It might also be a harbinger of the organisation’s power in the next 50 years.

The signs are that Opec will assume a steadily greater importance in the coming decades, strengthening its position as the oil market’s swing producer with a unique ability to influence the price.

Two crucial asymmetries help explain this. Together, Opec’s 12 members produce about a third of the world’s daily oil output: 29.1m barrels out of a total of 86m. But their share of global oil reserves is far higher: Opec countries possess almost 80 per cent of the total – about 1,000bn barrels – compared with 273bn barrels in the rest of the world.

While Opec members pump a smaller share of the world’s oil than might be thought, their control of so much of the global stock is unrivalled.

Second, Opec members have the spare capacity to vary production levels and shape the market. Saudi Arabia, the cartel’s de facto leader, could pump about 12.5m b/d; the kingdom, however, chooses to withhold more than 4m barrels and produce a relatively modest 8.25m b/d. In this way, Saudi Arabia is able to guide oil prices towards its preferred level, which Ali Naimi, the oil minister, defines as $70-$80 per barrel.

As non-Opec producers steadily deplete their own reserves over the next 50 years, the cartel’s power over prices is likely to grow. Its members will probably account for a sharply rising share of the world’s oil output.

“Opec”, says Adnan Shihab-Eldin, the cartel’s head of research, “will increasingly be called upon to supply the incremental barrel”.

By 2025, Opec’s share of daily output will probably have grown to 50 per cent. Total oil production by non-members, which now runs at 57m b/d, has probably reached a plateau, according to Opec’s research division, with the additional barrels extracted from frontier territories, such as the Brazilian or west African coasts, mirrored by the decline of mature fields in the US or the North Sea.

All this means that Opec can probably look forward to rising influence in the decades ahead. But this trajectory is by no means assured. Several factors could spoil the party.

The first is uncertainty over demand, particularly in the light of policies to prevent climate change. At present, oil consumption is broadly flat in the mature markets of Europe and North America, while the developing economies of Asia and the Middle East account for the bulk of demand growth.

If, however, the drive to combat climate change were to produce genuinely global moves to reduce dependence on fossil fuels, Opec’s assumption that demand will continue to rise in developing countries may prove misplaced.

The cartel prospers in a world where the energy mix is dominated by fossil fuels; a radical change in this balance would prove fatal for it. Any such fundamental transformation is almost inconceivable in the next decade or two. But, on a 50 year view, things are less certain.

The second question mark is over Opec’s ability to maintain its own cohesion. The 12 member states include countries as diverse as Ecuador, Angola and Iran; they have little in common beyond their possession of large oil reserves and their status as developing nations.

Already, members have a record of largely ignoring the cartel’s agreed production cuts.

Mr Badri might hail the virtues of the Algeria decision, but his own figures show that member countries are complying with only 61 per cent of the output reduction. Independent estimates, meanwhile, put the compliance figure at closer to 50 per cent.

The worst offenders are believed to be Venezuela, Nigeria and Angola, whose production policies appear to bear minimal relation to Opec quotas.

Mr Badri acknowledges that Opec must “work harder” on the issue of compliance. “A decision that has been taken; we have to adhere to it. If we want to change it, we have to change it together. If we don’t want it, we don’t decide it,” he says.

But Mr Badri, a former Libyan oil minister and head of the country’s national oil company, points to the 1,000bn barrels held by Opec members in their domestic reserves and voices optimism for the organisation’s next 50 years.

“We can supply the world with oil for the foreseeable future,” he says. “I assure you, when difficult times come, Opec will stand and take a decision to restabilise the market.”

Angola wants higher output quota from OPEC

http://af.reuters.com/article/angolaNews/idAFSGE69U01K20101031

* Producing close to OPEC quota - oil minister

* Output now 1.8 million barrels per day

(Adds quote, details)

NEW DELHI, Oct 31 (Reuters) - Angola wants OPEC to raise the country's oil output quota as the southwest African country depends on its natural resources for "social economic recovery", Oil Minister Jose Botelho de Vasconcelos said on Sunday.

Asked if the country was producing well above the OPEC quota, he said: "We are very close to it," adding his country was cutting its output to comply with its OPEC quota.

Botelho de Vasconcelos, who is in New Delhi to attend industry conference Petrotech, said the country was producing 1.8 million barrels per day, which is more than its OPEC quota.

He said the country would like OPEC to raise its output quota as oil significantly contributes to its growth.

Asked if he seeks a higher quota for his country, he said: "We are trying to do that...In our county we live during lots of time during war...In that time we need resources to recover."

The southwest African nation relies on oil for around 80 percent of government revenues.

OPEC has not agreed a formal change in output since December 2008 when it adopted a record cut in its production target, which has left the group plenty of leeway to adjust supplies informally by raising or lowering compliance with the curbs.

A recovery in oil markets, now trading well above $8O a barrel for the U.S. crude, has helped to encourage leakage above agreed limits and Angola was among those whose output rose in October.

Botelho de Vasconcelos said he expected the crude oil price to hover around $80 per barrel in the first quarter of 2011.

"It (current oil price) is not bad. We are comfortable with it," he said.

Asked if he expected OPEC to change its policy at its next meeting on Dec. 11, he said: "I think in (our) next meeting we will analyse the (oil market) situation and to transfer the presidency to Iran," he said. (Reporting by Nidhi Verma; Editing by Michael Shields)

Exxon Mobil Unit Makes Condensate Discovery in Nigeria

http://www.bloomberg.com/news/2010-11-01/exxon-mobil-unit-makes-condensate-discovery-in-nigeria-update1-.html

Exxon Mobil Corp.’s Nigerian unit said it made a “rich gas condensate” discovery off the southeast coast of the West African nation.

The Pegi discovery in the company’s Oil Mining License 104, 75 kilometers offshore, form part of exploration efforts aimed at expanding output capacity and meeting growing domestic demand for fuel, the subsidiary said in an e-mailed statement today. Condensate is a low-density mixture of hydrocarbon liquids.

President Goodluck Jonathan in August announced a plan to end the state power monopoly and allow private companies to build gas-fired, coal-fueled and hydroelectric plants to end the country’s power shortages. Nigeria has natural gas reserves of 185 trillion cubic feet, the world’s eighth-largest, according to the U.S. Energy Information Administration.

Exxon Mobil holds a 40 percent stake in a joint project it operates for state-owned Nigerian National Petroleum Corp. The venture produces 700,000 barrels a day of oil, condensate and natural gas liquids, according to the statement.

To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net

To contact the editor responsible for this story: Stephen Cunningham at scunningha10@bloomberg.net

W.Africa Crude-Nigerian, Angolan rise as market tightens

http://af.reuters.com/article/nigeriaNews/idAFLDE6A01M920101101

* Nigerian Qua Iboe rebounds 15 cents to dated plus $1.55

* Only two Qua cargoes reported still available for December

* Angolan programmes for December revised up 80,0000 bpd

LONDON, (Reuters) - Nigerian crude oil differentials
moved higher on Monday, supported by stronger demand in Europe
after the end of the French refinery strikes and by Asian demand
via buying tenders.

Workers at French refineries and ports have returned to work
but there is still a back-log of crude vessels waiting to get
into oil terminals. Asian demand meanwhile has continued apace,
with Indian refiners soaking up a range of light, sweet crudes
from Nigeria over the last month.

Angolan crude oil remains in demand from Chinese buyers and
values have been supported by a tightening of supply.

NIGERIA

* Qua Iboe: Trafigura was reported to be offering its cargo
loading Dec. 27-28, one of only two cargoes still said to be
available for lifting in December. The other 11 Qua Iboe cargoes
have been sold for between dated Brent plus $1.40 and plus $1.55
but traders said the market had since moved higher and assessed
doable levels at up to dated Brent plus $1.55 to plus $1.60.

* Bonny Light was assessed close to Qua Iboe with some extra
interest in the grade due to its high middle distillate content.

* Erha: Vitol was reported to be offering a cargo loading
Dec. 28-29 at dated Brent plus $2.00 but traders said this level
was probably 25 cents too high.

* Nigeria's parliament may pass its long-awaited Petroleum
Industry Bill before the end of December, paving the way for a
new exploration licensing round, presidential advisor on energy
Emmanuel Egbogah said on Monday.

* Egbogah said Nigeria was currently producing between 2.6
million and 2.7 million barrels per day (bpd) of oil versus an
output capacity of 3.6 million bpd.

ANGOLA

* Angola will export 1.57 million bpd of crude in December,
around 80,000 bpd more than previously expected for the month
but down from 1.65 million bpd in November, trade sources said
on Monday. The final programme for December shows Angola loading
51 full or part cargoes, three cargoes more than shown in the
earlier, provisional loading programme.

* December's final programme shows three cargoes of Palanca
crude and four cargoes of Plutonio in December.

* Production will be lower in December due to maintenance
and technical issues on several crude export streams, traders
said. Oil output should recover early in 2011, they said.

* Sonangol was offering just three cargoes for December
loading, having sold all the others either spot or term:
Girassol, Saxi and Palanca.

* Girassol: offered at dated Brent plus 30 cents, bids
assessed around 20 cents lower.

ASIAN TENDERS

* State-run Indian Oil Corp. has open another buying tender
for sweet crude loading in January, its second, traders said.

(Reporting by Christopher Johnson; editing by Alison Birrane)

West Africa’s Hottest Oil & Gas Producers Meet in London

http://www.prlog.org/11039840-west-africas-hottest-oil-gas-producers-meet-in-london.html

Ghana, Nigeria and Equatorial Guinea delegations meet in November to discuss current developments and future opportunities in the Gulf of Guinea region.

Gulf of Guinea 16-18 Nov 2010

FOR IMMEDIATE RELEASE
PRLog (Press Release) – Nov 01, 2010 – Ghana, Nigeria and Equatorial Guinea delegations meet in November to discuss current developments and future opportunities in the Gulf of Guinea region. Key decision makers from West Africa’s hottest oil and gas producing countries will discuss legal and fiscal issues and how to maximize revenue and increase investments in the region.

Dr Oteng Adjei, Honourable Minister of Energy and Vivienne Gadzekpo, Ministry’s Legal Counsel will lead the Ghanaian delegation and discuss Ghana’s upcoming developments and how can the Petroleum Law optimize the impact of oil and activities in local development.

Equatorial Guinea’s Minister Delegate for Mines, Industry & Energy, Gabriel M Obiang Lima is set to deliver an update on the Gas Masterplan and review the progress and timelines of the 3G Consortium. Serapio Sima Ntutumu, Sonagas, G.E.’s Deputy Director General is to address new opportunities in refining and petrochemicals as well as assess contractual models for successful partnerships in Equatorial Guinea.

The Nigerian delegation headed by Hassan Tukur, Principal Secretary to the President of Nigeria also includes Prof Yinka Omorogbe, NNPC’ s Company Secretary, who will discuss future opportunities for investments as a result of the much talked about Petroleum Industry Bill, and Dr Tim Okon, Group GM Strategy for NNPC who is set to present the fiscal terms of the PIB and its implications for investors. The new Nigerian Content Act will be covered by Ernest Nwapa, Executive Secretary, Nigerian Content Development & Monitoring Board.

Gulf of Guinea Oil & Gas to be held on 16-18 November 2010 is an essential forum to gain insights into the current developments in West Africa. Ministers, government and NOC representatives will be present throughout the three days of the conference to network and discuss upcoming projects and contracts face to face. Delegates from International Oil Companies will be at hand to speak about possible collaborations and future opportunities.


Other distinguished speakers will include:
Dr Levi Ajuonuma, Group General Manager Group Public Affairs, NNPC
Deirdre White, President, CDC Solutions
Alan Stein, CEO, Ophir Energy
Ernest Nwapa, Executive Secretary, Nigerian Content Development & Monitoring Board
Terry Gerhart, Vice President – Global Gas, Noble Energy
Sam Safo, General Manager Equatorial Guinea, Schlumberger
Kwame N Acquah, Managing Director, RDFC Africa Ltd
Charles Owusu Juanah, Esq., Chairman, K-San Law Firm
Ade Adeola, Managing Director Project & Export Finance, Standard Chartered Bank
Alex Vines, Research Director, Regional & Security Studies & Head, Africa Programme, Chatham House
Dr Alirio Parra, Senior Associate, CWC Group Ltd
Trygve Tamburstuen, Business Development Director, Interoil Exploration & Production ASA
Willy Olsen, former Senior Adviser to the President & CEO of Statoil
Tony Renton, Principal Advisor, RPS Energy
Jeffrey Waterous, Chairman, Renaissance JMW Energy Ventures
Nicolas Bonnefoy, Avocat au Barreau de Paris, Mining, Oil & Gas Practice-London, Gide
Loyrette Nouel MNP
J Jay Park, Partner & Chair International Energy Practice Group, Macleod Dixon LLP
Engr Simbi Kesiye Wabote, GM Nigerian Content Development SPDC C&P Manager, Shell Petroleum Development Company of Nigeria Ltd
For more information visit www.thecwcgroup.com/gog

NOTES TO EDITORS

1. The Gulf of Guinea Oil & Gas Conference is taking place in London, UK, on 16-17-18 November 2010
2. For more details about the conference, speakers and guests including bios, please contact: Joanna Kotyrba on +44 20 7978 0092 begin_of_the_skype_highlighting +44 20 7978 0092 end_of_the_skype_highlighting or email jkotyrba@thecwcgroup.com
3. The event is organised by The CWC Group, an award-winning company which specialises in energy and infrastructure, developing knowledge, creating commercial opportunities and strategic solutions for government and industry by offering professional training, conferences and exhibitions.
4. For more information, please visit: www.thecwcgroup.com/gog

About The CWC Group: an award-winning company which specialises in energy and infrastructure, developing knowledge, creating commercial opportunities and strategic solutions for government and industry by offering professional training, conferences and exhibitions.

Contact Email :
***@thecwcgroup.com Email Verified
Issued By : The CWC Group
Phone : 2079780028
Fax : 2079780099
Address : Regent House, 16-18 Lombard Road, London
Zip : SW11 3RB
State/Province : London
Country : United Kingdom
Categories : Energy, Government, Business
Tags : government, gulf of guinea, ghana, oil, Gas, Energy, Infrastructure
Last Updated : Nov 01, 2010
Shortcut : http://prlog.org/11039840

Nigeria: Italian Firm Acknowledged Oil Line Attack

http://abcnews.go.com/Business/wireStory?id=12003281

Italian oil firm Eni SpA says a pipeline carrying some of its crude out of Nigeria's oil-rich southern delta has erupted after an "act of sabotage."

The oil firm says the pipeline attack, which occurred either Thursday night or Friday morning, has cut production by 4,000 barrels of oil a day. Of those barrels, Eni says 800 each day are their share. It could not be immediately confirmed whose supplies were also affected.

Eni says it has not declared any shipment warnings because of the "minor amount of production involved."

Militants in the Niger Delta began a campaign of kidnapping and pipeline bombings in 2006, upset over pollution and the region's endemic poverty despite 50 years of oil production.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

EKET, Nigeria (AP) — A Nigerian policeman says an Indian expatriate who leads an Exxon Mobil-supported school in the oil-rich Niger Delta has been released by her kidnappers.

Akwa Ibom state police commissioner Walter Rugbere says officers recovered Lakshmi Tombush on Thursday night from a house in Eket, the same city where the U.S. oil company has its base of operations. Rugbere said Friday that Tombush was in good health.

Rugbere says police also found the kidnapped wife of a former military governor at the same time. The commissioner says no arrests have been made.

The number of violent kidnappings targeting middle-class Nigerians in the region has skyrocketed this year.