NNPC’s Duke Oil Relocates To Dubai - |Ads4naira Blog|

NNPC’s Duke Oil Relocates To Dubai

....Crude oil price jumps to over $60
....Corporation records 45,347 pipeline breaks in
eight years
Ejiofor Alike in Lagos and Chineme Okafor in
Abuja with agency reports
The trading arm of the Nigerian National
Petroleum Corporation (NNPC), Duke Oil, is
leaving London to set up in Dubai to be
closer to the Asian market, which is fast
becoming the main buyer of Nigeria’s crude
oil.
While Nigeria once sold much of its oil to
the United States, the shale boom displaced
that, and the US crude is now competing
with Nigeria for buyers in Europe and Asia.
Reports on Duke Oil relocating broke just as
oil prices rose more than four per cent
yesterday, boosted by a wider market
pickup on positive news from China’s
services sector, after three days of losses
due to fears about a weakening global
economy.
It also came on the day NNPC reported a
total of 45,347 pipeline breaks on its
downstream pipeline network between 2001
and June, 2019.
The global benchmark crude oil was up by
over $2.5 or four per cent, at $60.59 a
barrel while the United States West Texas
Intermediate gained 4.15 per cent, to close
at $56.18 a barrel.
Reuters reported that the move by Duke Oil
to relocate to Dubai also has tax
advantages over keeping the office in
London.
India is now the single largest buyer of
Nigeria’s crude, and Asian refineries that
have started over the past several years are
also increasingly selling refined oil products
such as petrol and diesel to Nigerian
buyers.
Duke is also one of the companies that
swaps Nigerian oil for fuel, primarily petrol,
in order to supply domestic consumers.
Placing the traders in Dubai will also enable
them to travel more easily between the new
office, Nigeria, Europe and Asia.
In a filing with Companies House, Duke Oil
Services, the part of the company officially
registered in London, said it would wind
down its operations in the second quarter of
this year and move its office to an
unspecified new country.
While the primary arm of the group, Duke Oil
Company Inc, is registered in Panama,
sources told Reuters that traders for Duke
as well as the services arm are relocating
from London to Dubai.
Duke, a fully owned subsidiary of NNPC,
had been based at the corporation’s office
in London’s Hammersmith neighbourhood.
Reports yesterday, however, showed that oil
prices rose more than four per cent boosted
by a wider market pickup on positive news
from China’s services sector, after three
days of losses.
While the global benchmark crude oil was
up by over $2.5 or four per cent, at $60.59
a barrel, the United States West Texas
Intermediate gained 4.15 per cent, to $
56.18 a barrel.
CNBC reported that the global markets
rebounded after a private survey showed
that activity in China’s services sector
expanded at the fastest pace in three
months in August as new orders rose,
prompting the biggest increase in hiring in
more than a year.
China is the world’s second-largest oil
consumer and largest importer.
But United States President Donald Trump
on Tuesday warned he would be “tougher”
on Beijing in a second term if trade talks
dragged on, compounding market fears that
trade disputes between the two countries
could trigger a U.S. recession.
In a possible sign of tension easing in the
energy-rich Gulf, Iranian state television
reported yesterday that Tehran would free
seven crewmembers of the detained British-
flagged tanker, Stena Impero.
The vessel was seized two weeks ago after
Britain detained an Iranian tanker off the
territory of Gibraltar, which was released in
August.
Meanwhile, NNPC has disclosed that it
recorded a total of 45,347 pipeline breaks
on its downstream pipeline network between
2001 and half year 2019.
Its Group Managing Director, Mallam Mele
Kyari, at the Nigeria International Pipeline
Technology and Security Conference and
Exhibition, organised by the Pipelines
Professionals Association of Nigeria (PLAN),
said yesterday in Abuja that in 2018 alone,
a total of 19 fire incidents were recorded on
the petroleum products pipelines.
· He added that the theme of this year’s
conference: Pipeline Assets: Critical
Backbone for Socio-Economic Development,
resonated with the thinking at the NNPC on
the need to reinforce the narrative of the
critical role of pipeline assets to the
nation’s energy security and economic
progress.
· He said it was difficult for the oil and gas
industry to deliver much value to the
economy without effective and efficient
pipelines operations.
“As a major player in the oil and gas
industry, NNPC operates over 5,000
kilometers of pipelines traversing many
communities to link terminals, three
refineries and 20 depots for efficient
transportation of crude oil and refined
products. In addition, NNPC has over 1,700
kilometers of natural gas pipelines to supply
gas to power plants and gas-based
industries, including deliveries to trans-
national reception points,” the GMD stated.
· He lamented that the huge pipeline assets
have become difficult to operate efficiently
as a result of incessant activities of vandals
and other criminal syndicates that were
becoming increasingly sophisticated.
· Kyari said the corporation was ready to
collaborate with PLAN and all stakeholders
to respond aggressively to incidence of
pipeline vandalism in the country with a
view to mitigating them.
· He said the current administration was
determined to boost domestic gas utilisation
to improve power generation and boost
industrial growth, stressing that the support
of all, especially pipeline professionals, was
required to drive the laudable initiative to
fruition.

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