25 Aug

Daily Watch – Oil swaps end, Kaduna Electric recruits 3000

  • President Buhari has approved a request from the NNPC to terminate oil swap contracts. Oil swap derived from the fact that Nigeria’s four refineries operated mostly below 50% installed capacity and since 2003, the NNPC continued to allocate them 445,000 barrels of crude oil per day, which corresponds to 100% capacity. The oil swaps came under criticism following allegations that they have been opaque and the government has been short-changed in the deals.
  • The Kaduna Electric Distribution Company (KEDC) said it has recruited 3,000 workers in its renewed bid to shore up power supply to its 390,000 customers in Sokoto, Kebbi, Kaduna and Zamfara States. According to its Director of Engineering and Technical Services of the company, Mr Bello Musa, “such a boost to power supply could create 15,000 indirect jobs in the four states.” The company said it will provide more than 100,000 pre-payment meters to its customers annually.
  • The Nigeria Liquefied Natural Gas company (NLNG), as at Q2 2015 has shipped 3,200 liquefied natural gas (LNG) cargoes, since it began international gas exports in 1989, the managing director, Babs Omotowa said. The company, which is the highest taxpayer in sub-Saharan Africa with N220 billion in corporate income tax, has converted about 133 billion cubic meters (bcm) or 4.68 trillion cubic feet (tcf) of associated gas (AG) to exports as LNG and natural gas liquids (NGLs). Also, with 24 ships, the company manages the largest fleet of ships by any Nigerian company. NLNG has paid dividends of about $30 billion, 49 percent of which went to the Federal Government through the NNPC.