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Nigeria’s Brent crude crosses $72 mark, production hits 1.81mbpd

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crude oil

Nigeria’s Brent crude crosses $72 mark, production hits 1.81mbpd

 

Nigeria’s Bonny Light crude oil price touched it’s highest since 2014 at the weekend, supported by Organisation of the Petroleum Exporting Countries (OPEC) led production cuts, and the likelihood of the United States taking military action in Syria increases.

Besides, Nigeria’s crude oil production increased from 1.792mbpd in February to 1.810 mbpd in March.OPEC and allies including Russia are keeping crude oil supply limits in place in 2018, to reduce a price-denting glut of oil held in inventories.

Also, the United State pledged recently that missiles would be fired at Syria and this is said to have threatened crude oil supply level thereby leading to higher oil prices.

Nigeria’s Bonny Light attained its highest level at $72.73 a barrel, a little lower than Brent crude oil, which sold for $72.58 per barrels during the trading hours on Friday.

Bonny Light oil is a high grade of Nigerian crude oil produced in the Niger Delta basin and named after the prolific region around the city of Bonny.

The very low sulfur content of Bonny Light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower environmental impact of its byproducts in refinery effluent.

The United States West Texas Intermediate (WTI) crude oil also hits $67.39 per barrel at the weekend.In March, the OPEC Reference Basket (ORB) increased by less than 0.5 percent to $63.76 per barrel.

Oil futures ended about one percent higher in a relatively volatile month, following US equity market movements and supported by robust oil demand growth forecasts, tightening US crude stocks and geopolitical tensions.

For the month, the Dubai structure flipped back into contango, while Brent and WTI structure remained in backwardation, albeit at a reduced level before the latest price surge.

OPEC crude oil production dropped by over 201,000 barrels per day in March over the previous months, while production mainly decreased in Angola, Venezuela, Algeria and Saudi Arabia.

This OPEC said has been partially offset by higher production in the United Arab Emirates, according to the organization’s latest crude oil report.

OPEC expects the demand for its crude oil to be at 32.6 million barrels per day (bpd), 0.3 mbpd lower than in 2017.

Speaking recently on the efforts of OPEC toward price stability, OPEC Secretary General, Mohammad Sanusi Barkindo said that the global energy system is undergoing significant and speedy changes and becoming progressively complex.

He stated: “Our economies are increasingly interwoven. We must build on our common ground to face upcoming challenges together, strive for sustainable market stability and safeguard future energy security through our ongoing effective cooperation.

The irreversible forces of globalization will continue to shape this energy transition.

“We have, through the Declaration of Cooperation, which has become a permanent feature on the global energy scene, established a new framework for producing countries, taking into account the strategic interests of consumer countries as well as the world economy.”

Minister of Petroleum Resources, Dr. Ibe Kachikwu urged OPEC countries to work hard and become least-cost oil producer, saying that if shale oil can produce and sell at $65 per barrel, there was absolutely no reason why Nigeria and other OPEC members’ country should be struggling.

He said: “Shale is going to active. We know that whenever we are in excess of $65 per barrel, shale gets very active because the fundamentals become much more supportive of more investments and more production lines.”

Customs Corner

PTML Customs Command Generates N66.9b, Targets Two-Hour Clearance Time for Vehicles

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Author: Gift Wada.

The Port Terminal Multiservices Limited (PTML) Command of the Nigeria Customs Service has collected N66,920,181,586.30 as total revenue for the first quarter of 2024, which is N22,198,965,809.55 higher than N44,721,215,776.75 collected between January and March 2023, representing 49.6 percent increase.

The Customs Area Controller (CAC) of the command, Comptroller Saidu Yusuf, in a press statement signed by the Command’s Spokesperson, Chief Superintendent of Customs Muhammad Yakubu, on 13 April 2024, described the increase in revenue collection as a laudable feat.

Comptroller Yusuf, while commending the Comptroller General of Customs, Bashir Adewale Adeniyi, MFR, for initiating strategies to achieve faster cargo clearance, assured that PTML Command under his watch aims to surpass its record of three-hour cargo clearance for compliant traders.

“The launching of time release study (TRS), which is ongoing, and other deliberate efforts by the Comptroller General have contributed to expanding terminal space and promoting ease of doing business in PTML.

“The PTML command has the potential to achieve two-hour cargo clearance and surpass its existing three hours records if port users compliance level is improved,” he said.

Comptroller Yusuf, who described PTML as one of the safest and most secure environments for Roll On Roll Off (RoRo) and general cargoes, also advised importers and their agents to take advantage of the incentives available for compliant traders such as fast track, advance ruling and possible migration to the Authorised Economic Operator (AEO) status.

He reminded port users in PTML of the robust and time-conscious dispute resolution mechanism, which has contributed immensely to the revenue collection, trade facilitation, and anti-smuggling functions of the command.

While commending the various government and private sector stakeholders for their cooperation and support towards the realisation of the government’s goal for revenue collection and prevention of unlawful activities, Comptroller
Yusuf expressed optimism that the command will surpass its annual target for the year.

He described the importation of vehicles meant for Nigerian roads into neighbouring countries with the intent to smuggle them through unapproved roads into Nigeria as unpatriotic and an act of economic sabotage as the command has the capacity for seamless and efficient processing of such automobile cargoes.

For the second quarter and first half of the year, the CAC enjoined command officers to maximally deploy available technology and rededicate themselves to the job to achieve more.

He reminded port users that there is increased anti-smuggling vigilance to uncover concealment such as under declaration and smuggling of prohibited items. The CAC added that any discovered infraction will fully evoke the Nigeria Customs Service Act (NCSA) 2023, where there are spelt-out penalties.

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Customs Corner

Comptroller Jaiyeoba Commends Apapa Scanning Officers for Non-Compromise

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Author: Ibe Wada.

The Customs Area Controller (CAC) of Apapa Area Command, Comptroller Babajide Jaiyeoba, has commended Officers of the Non-Intrusive Inspection Technology Unit (NIITU) for their invaluable contributions to the overall success of the Command.

Comptroller Jaiyeoba, who paid an unscheduled visit to the scanner site, reminded the officers of the importance of teamwork in sustaining the gains of compliance and revenue collection recently recorded by the command.

In a press statement issued on Tuesday, 9 April 2024, by the Public Relations Officer, Chief Superintendent of Customs, Abubakar Usman, the CAC thanked Deputy Comptroller of Customs Salamatu Atuluku, the Scanner Manager of the scanning site and encouraged the unit not to be deterred by complaints coming from persons who were made to pay accurate duties to the government after issuance of demand notices.

According to him, no business person made to part with money will be happy with Officers who refuse to compromise the ethics of their jobs.

Addressing the officers, he said, “The main reason for me coming here is to appreciate you. I may not see you, but I have seen your work, and I won’t keep quiet about what I have seen. You are doing very well.”

He urged the Officers to remain steadfast in their commitment to integrity, emphasising that uncompromising adherence to their duties would ensure their credibility before the public and their superiors.

“For those of you doing intervention in the form of Demand Notice(DN), there is nobody who part with money that will be happy with you. They will want to play intelligent by hiding somewhere. When you fetch them from their hiding place, they become your enemy. Whatever they write about anybody here will still come down to me, and if anybody works well, the onus on me is to defend such a person”. He added.

The CAC acknowledged the challenges faced by Officers issuing demand notices, highlighting the inevitability of dissatisfaction from individuals required to pay accurate duties to the government.

He reminded the unit not to be swayed by such complaints but to focus on upholding the integrity of their work.

Comptroller Jaiyeoba encouraged the officers to remain resilient, noting that their commitment to excellence would lead to further responsibilities and recognition.

“Just have it at the back of your mind that you owe yourself the duty of doing your work diligently whether anyone comes around as a friend or enemy. It is not enough for you to rest. The reward for hard work is more work.” He concluded.

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Customs Corner

PH Oil & Gas FTZ Customs Generates N11B, Surpasses Revenue Target

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Author: Lucy Nyambi.

The Nigeria Customs Service, PH Oil and Gas Free Trade Zone Command, has generated the sum of N11,745,352,898.00 in the first quarter of 2024. This surpasses the revenue target of N1,245,352,898.00, representing an 11.9% increment in the first quarter of 2024.

This was contained in a statement signed by the Command Public Relations Officer, ASC II Paul Gimba, on Monday, 8 April 2024, on behalf of the Customs Area Controller (CAC), Comptroller Abubakar Umar.

According to the statement, Comptroller Abubakar Umar attributed the achievement to robust and positive engagement with relevant stakeholders in the industry.

He said, “This remarkable record was achieved as a result of robust and positive engagement with relevant stakeholders in the industry. This stakeholder engagement has minimised resistance to customs laws, improved problem solving and identified potential risks and challenges from stakeholders’ perspectives and trade facilitation. ”

“This line of action is in line with the Comptroller-General of Customs Bashir Adewale Adeniyi MFR policy thrust of Consolidation, Collaboration, Innovation and implementation of the CGC’s trade facilitation initiatives”. He emphasised.

According to the CAC, the Command will continue to facilitate trade in the export of refined sugar “from Bundu Sugar Refinery, fertiliser from Notore Chemical Industries PLC and LNG from Bonny Island including collection of revenue on goods entering into the Customs territory such as Oil and Gas Equipment, oil well supplies, spare parts and instrumentation and tubing etc.”

Comptroller Umar stated that the command’s zero tolerance for revenue leakage had earned a commendation from the CGC.

“On the 26th February 2024, the Comptroller-General of Customs commended three officers of this Command over the recovery of N3,118,444,588.00. It cannot be over-emphasized the role of collective efforts and dedication to duty of Officers and Men of this Command in this significant achievement. ” He said.

The Customs Area Controller appreciated the CGC and the Management of the Nigeria Customs Service in the commendation of officers’ diligence, which has boosted the morale of officers and men of the Command.

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