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NNPC, Partners To Rake In Over $760 Million Revenue From OML 130 Gas Supply Agreements

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From Left: Managing Director of SAPETRO, Mr Toyin Adenuga, MD TEPNG, Mr Mike Sangstar, GMD NNPC, Mallam Mele Kyari, Rep of CNOOC Mr. Yuguang Pan and MD Prime 130 Limited, Mr. Emeka Phil Ebasie, at the execution of OML 130 Gas Supply Agreements ..

The Nigerian National Petroleum Corporation (NNPC) and its partners in the Oil Mining Lease (OML 130) Production Sharing Agreements (PSA) and Production Sharing Contract (PSC) are set to earn over $760m from fresh Gas Supply Purchase Agreements (GSPAs) and Gas Entitlement Agreement (GEA) executed Thursday at the NNPC Towers.

The agreements which are part of the Corporation’s gas commercialization programme involve Total Exploration and Production Nigeria (TEPNG), China National Offshore Oil Corporation (CNOOC), South Atlantic Petroleum Nigeria Limited (SAPETRO) and Prime 130 Limited.

The sale structure under which the agreements were executed is designed to provide a clear delineation for the allocation of the gas sale proceeds to all the participating parties, including midstream handling and transportation.

“This a very proud moment for all of us. I understand all the delays, they are completely unavoidable. It is desirable for us to have full alignment of all parties before we proceed. The end result is that there would be clarity around our relationship and we would be unlocking resources that have been on the table for many years. We now have a clear line of sight around gas revenue of up to $250million dollars, and also another $510 million dollars that is applicable to the rest of us,” Mallam Kyari enthused.

He noted that apart from the revenue boost, the agreements have also opened up an opportunity to have the dispute settlement agreement for the OML 130 PSC and ultimately to have a renewed production sharing contract which would now guide the relationship going forward.

On the recently passed Petroleum Industry Bill, the GMD assured the parties that the fiscal terms proposed in the oil reform legislation remain some of the most attractive in the global oil and gas industry, noting that investors have no cause to worry.

In his response, Mr. Mike Sangster, Managing Director of TEPNG, expressed delight at the signing of the agreements, adding that the parties were committed to the terms of the agreements.

He commended the GMD and the NNPC for their vigorous pursuit of the aspiration of the decade of gas programme of the Federal Government.

OML 130 is a deepwater block located 130kilometres offshore Niger Delta at water depths of well over 1000metres. The block contains the producing Akpo and Egina fields and Preowei discovery.

The asset originally known as Oil Prospecting License (OPL) 246 was awarded in 1998 to SAPETRO and was later converted to OML 130 in February 2005 after commercial discovery of oil in Akpo and Egina in 2000 and 2003 respectively.

At conversion, the Federal Government, represented by NNPC, exercised its rights as concessionaire of the block in April 2005 whereby it entered into a PSC with SAPETRO as contractor and TUPNI as operator for 50% of the interest in OML 130 PSC and a Production Sharing Agreement (PSA) between TUPNI, SAPETRO and PRIME 130 for the other 50% interest in the OML 130 block.

In April 2006, SAPETRO farmed-out 90% of its Contractor interest in the OML 130 PSC to CNOOC.

The remaining reserves on the block are estimated at One billion barrels of liquids and over 1.2trillion cubic feet of natural gas.

Gas from the block was transported and sold to the Nigeria Liquefied Natural Gas (NLNG) via the Akpo-Amenam Gas Pipeline and was funded in kind by the PSC under the Gas Utilization Agreements (GUAs) for a consideration of 1TCF of gas which was achieved in July 2018, thus terminating the GUA.

It was projected that the parties would agree on the post- 1TCF regime for the monetization of the gas upon the expiration of the GUA. However due to underlying disputes on the PSC and other reasons, the post-1TCF regime was never agreed upon.

The new agreements offer the gas sales framework for the 100% volume under the PSC and the PSA, according to a statement by Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of the NNPC.

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Ford plans $30 billion electric vehicle investment by 2025

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By Chris Isidore, CNN Business

New York (CNN Business) – Ford is doubling down on electric vehicle development, announcing Wednesday it will invest $30 billion in electrification efforts by 2025. The automaker also pledged that 40% of its vehicles sold by 2030 will be electric.
Ford had previously announced plans to spend $22 billion on electrification efforts and had recently revealed plans to build two new battery factories in a joint venture with Korean battery maker SK innovation. Last week, Ford also unveiled plans for an all-electric version of the F-150 pickup, the best selling vehicle from any US automaker. It has already started selling an electric SUV under its iconic Mustang name, the Mustang Mach-E.
But Ford is still playing catchup with all-electric vehicle maker Tesla and also with traditional automakers, such as its alliance partner Volkswagen and domestic rival General Motors. Both have more extensive EV offerings and more aggressive electrification targets. GM says it is aiming to sell only emission-free vehicles by 2035.
Virtually all automakers are ramping up production plans for electric vehicles to meet increasingly tougher environmental regulations and growing demand from car buyers. Electric cars have fewer moving parts than gas-powered vehicles, and therefore can be cheaper to build because they require less labor.
And investors are more interested in backing automakers with ambitious EV plans rather than traditional automakers. Tesla is by far the most valuable car company, despite having a fraction of the sales and profits of traditional automakers. Tesla’s market value is roughly equal to that of the value of the five largest global automakers combined. Shares of Ford rose 2% in premarket trading on its EV announcement.
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All Rights Reserved.

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Kpokpogri drags company, others before EFCC over alleged N16.5m fraud

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A company, BLUESHIP CONSULT LTD has been dragged to the Economic and Financial Crimes Commission (EFCC) by one Comrade Prince Kpokpogri over an alleged contract scandal.

In the petition dated May18/2021, which was carried out by a law firm CEDARWALL and PARTNERS and signed by Ovie Justice Osefia Esq, the petitioner Kpokpogri alleged an act of financial fraud, cheating and breach of trust/failure to construct 10x7m infinity pool project after funds were given.

Kpokpogri specifically request the commission to investigate and bring to justice BLUESHIP CONSULT LTD, Michael Chidinma Ifejia, Mrs. Victoria Chinelo, Ifejia Folakemi Faphunda and others now at large for failing to carry out the construction of the said swimming pool project at Guzape Area in Abuja after collecting the sum of Sixteen Million Naira (N16,000,000.00) from him.

According to the petitioner, after the negotiations and written agreement which took place in Lagos on the 13th Day of August, 2020, the company agreed to execute and complete the project within six weeks (6 weeks) immediately after the mobilization fees is paid into the company account.

But after the total sum had been paid in tranches into BLUESHIP CONSULT LTD Keystone bank account number 1007320832, the company failed to carry out construction as agreed within the stipulated time.

The law firm further alleged in the petition that the company and its operators has become evasive and incommunicado, alleging that its conduct has portrayed suspicious acts of frauds, cheating and obtaining money under false pretense.

The petitioner has therefore urged the anti-graft agency to use its good office to promptly look into the complaints bordering on fraudulent dealings.

Kpokpogri also seek that justice be served in respect of the petition and to also protect the public from the activities of the company.

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CBN, First Bank on collision course over removal of MD/CEO

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Sources in First Bank accuse CBN of meddling in its internal affairs.

CBN forex restrictions on food itemsCBN approves new cheque standard for banks

The Central Bank of Nigeria has issued the Board of First Bank Ltd, one of Nigeria’s oldest banks a query for the removal of its CEO.

On Wednesday the Board of Directors of First Bank of Nigeria Limited revealed it had appointed Gbenga Shobo as its Managing Director/Chief Executive Officer (CEO). The appointment was disclosed in a statement made by the bank’s Chairman, Ibukun Awosika.

However, in an apparent leak, a letter from the central bank to First Bank revealed a query from the former to the latter expressing concern that the appointment of Shobo was done without the approval of the apex bank.

“The attention of the Central Bank of Nigeria (CBN) has been drawn to media reports that the Board of Directors has approved the removal of the current Managing Director of the bank, Dr. Sola Adeduntan, and appointed a successor to replace him. The CBN notes with concern that the action was taken without due consultation with the regulatory authorities, especially given the systemic importance of First Bank Ltd.”

The CBN also claimed that the tenure of Mr. Adedutan was yet to expire (bank MD’s have a maximum 10 years) and that they were also not aware of any misconduct of the former MD and as such there was no justification for his removal.

“Given that the tenure of Dr. Adeduntan is yet to expire and the CBN was not made aware of any report from the Board indicting the Managing Director of any wrong-doing or misconduct, there appears to be no apparent justification for the precipitate removal.”

However, sources within the bank informed Nairametrics that First Bank has a maximum of 6 years tenure for its MDs in line with its succession plans. They also claimed the CBN is meddling in its internal affairs as the removal of the MD is in line with its succession plans and also does not exceed CBNs maximum of 10 years.

“First Bank followed its corporate governance framework in its change of leadership and appointment of new executive directors. No Managing Director in the 127 years history of FirstBank has ever attempted a tenure extension. Why now?”

Another source who did not want to be mentioned as they were not authorized to do so lamented that “Adeduntan’s term formally ends in June this year after 2 terms of 3 years each. Leaving early is in line with the bank’s succession planning. When he was appointed 6 years ago and a DMD role was created, the erstwhile FirstBank Managing Director knew the DMD would succeed him and this is what has happened. This is corporate governance at its best.”

However, the apex bank in the leaked letter also suggested that it had provided First Bank with “regulatory forbearance” which can be interpreted as a bailout subliminally indicating that it has a say in the operations of the bank.

“We are particularly concerned because the action is coming at a time the CBN has provided various regulatory forbearances and liquidity support to reposition the bank which has enhanced its asset quality, capital adequacy and liquidity ratios amongst other prudential indicators. It is also curious to observe that the sudden removal of the MD/CEO was done about eight months to the expiry of his second tenure which is due on December 31, 2021. The removal of a sitting MD/CEO of a systemically important bank that has been under regulatory forbearance for 5 to 6 years without prior consultation and justifiable basis has dire implications for the bank and also portends significant risks to the stability of the financial system.”

Sources within the bank also allude without proof that the involvement of the central bank in this matter may also be due to First Bank’s support of Flutterwave which may have angered CBN.

“Is this payback for FirstBank for supporting and enabling Flutterwave and other tech companies? FirstBank MD-Designate, Gbenga Shobo created a revolution by partnering with Flutterwave and other tech companies. Is this payback? The CBN Governor must be called to order. This is not a banana economy. We need to preserve the FirstBank heritage with its seamless succession planning.”

It is unclear how this matter will end but stemming from experience, we will not be surprised if this matter ends in court in a few days. The Central Bank has often controversially delved into board-related issues such as appointments and even firing of all or some Board members for what it perceives as severe infractions.

And as expected, it ended its query to the bank with a threat to the board if the decision to remove Adeduntan is not reversed.

“In light of the foregoing, you are required to explain why disciplinary action should not be taken against the Board for hastily removing the MD/CEO and failing to give prior notice to the CBN before announcing the management change in the media.”

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