Connect with us

News and Report

We Have Put in Place definitive measures to Bolster our Production’ – Oando GCE, Wale Tinubu  

Published

on

After releasing the FY 2022 financial statements, Oando Plc has issued a press statement to address its net loss of N81.2 billion incurred in 2022, citing militancy and pipeline vandalism as major culprits.

Despite reporting a gross turnover of N1.99 trillion during the fiscal year, the group posted a loss after tax of N81.2 billion, a significant downturn from the N39.2 billion profit after tax posted in 2021.

Wale Tinubu, Group Chief Executive of Oando Plc, commenting on the result, noted,

“The heightened militancy and pipeline vandalism acts within the Niger Delta region dealt a substantial blow to our upstream operations, resulting in a marked reduction in our crude production volumes due to the protracted shut-ins for repair following each incidence. This was further compounded by a major gas plant fire incident which also necessitated a lengthy downtime.”

“Furthermore, a rise in our net interest expense due to increased interest rates on several of our major facilities in line with global rates increases, also contributed to our Loss after Tax position.”

“In response, we have put in place definitive measures to bolster our production and cash inflows towards ensuring a speedy return to profitability by collaborating with our partners to institute a comprehensive security framework aimed at permanently curbing the persistent pipeline vandalism whilst concurrently exploring inorganic growth opportunities to increase our reserves and production capabilities. We have also implemented a strategic restructuring of our key facilities to ensure they align with our cash flow dynamics.”

Recommended reading: Pipeline vandalism cost Nigeria N471 billion in 5 Years

Economic implication of oil theft in Nigeria

Theft and vandalism of oil installations is a major problem plaguing the oil and gas sector in Nigeria. The crime of oil theft has had a negative impact on the national economy and the business of local and international oil companies operating in the upstream sector.

Although there is no precise figure to quantify the financial impact of oil theft on the Nigerian economy, a study conducted by Dimkpa et al. (2023) estimates that Nigeria lost approximately $33.6 billion in oil revenue to oil theft between 2019 and 2022.

 A significant economic implication for Nigeria has been the consistent decline in oil production. Nigeria’s average oil production in 2022 was at 1.45 million barrels per day, an almost 1-million-barrel decline from the 2.4 million barrels per day produced by Nigeria in 2012.

In 2022, Oando’s total upstream production amounted to 20,703 barrels of oil equivalent per day (boe/day). This comprised 4,939 barrels per day of crude oil, 472 barrels per day of natural gas liquids, and 15,292 barrels per day of natural gas.

This figure represents a 22.7% decline from the 26,775 boe/d output reported by the group in 2021.

According to the company’s press statement, the decline in production was attributed to downtimes caused by shut-ins for repairs and sabotage activities.

In 2022, Oando Plc sold approximately 21.8 million barrels of crude oil, representing a 25% increase from the 17.4 million barrels sold in 2021. The group also sold about 1.94 million metric tonnes of refined petroleum, representing a 101% increase from the 962,371 metric tonnes sold in 2021.

Despite recording a decline in oil output, the group was able to sell an increased amount of crude oil due to its contracts with the then Nigerian National Petroleum Corporation (NNPC), ultimately contributing to its 148% revenue growth in 2022.

In 2022, Oando sold crude oil at an average realized oil price of $101.55/barrel and a gas price of $14.74/Boe, compared to 2021’s prices of $62.14/barrel for crude oil and $9.95/Boe for gas.

OMLs 60 to 63 gulped about $77.7 million in capital expenditure (CAPEX) from Oando, while OML 56 and OML 13 gulped about $22.6 million and $200,000 respectively. The group also spent $1.4 million in capital expenditure (CAPEX) on other assets.

As of 2022, Oando owned 20% stake in OMLs 60 to 63, as Nigerian Agip Oil Company (NAOC) also owned a 20% stake.

However, Oando is in the process of purchasing NAOC’s 20% stake in the oil fields, which will push its stake up to 40%.

News and Report

Netizens Slam Senator For Donating Burial Materials To Constituents Amidst Hardship

Published

on

By

Netizens have taken a swipe at Senator Rufai Hanga, who’s representing Kano Central Senatorial District, for donating 5,000 pieces of white fabric and clay pots to his constituents.

We gathered that the donation came amidst hardship that is currently rocking the country.

The donation is meant to assist with the burial process for loved ones, in response to the frequent requests for burial assistance from constituents.

Premium Times reports that Dawuud Auwal, one of Hanga’s social media aides, announced the donations on Facebook.

Auwal reportedly wrote, “We are used to these frequent requests from people soliciting money to buy white cloths and clay pots. Some have requested vehicles for transporting the dead.”

The senator, whose district covers 15 Local Government Areas, is an accountant who has been representing Kano Central since 2023, on the platform New Nigeria Peoples Party.

The Senator’s gesture is said to be in line with the traditional Muslim burial customs observed in the North.

White fabric is traditionally used to wrap the deceased, followed by broken clay pots as the initial covering before burial in sand.

Netizens have criticised the donation on the grounds that the Senator ought to have built hodpitals to attend to the the health of the people. They added that what the people need succour to ameliorate the hardship occassioned by the high cost of foodstuffs and not burial materials.

A pro-Hausa organisation, which uses the handle @VoiceofHausa, said, “This is a constituency project of Sen. Rufa’i Sani Hanga, Senator representing Kano Central.

“Instead of building hospitals, he distributed 5,000 pots and white cloths for the burial of the people of his senatorial District.”

SILAS TAFI-WARWAR, tweeting as @silastafi, said, “I don’t understand…. Is he wishing them dead or something?

“What is the rationale behind this gift or donation? Constituency project or something?

“In the face of hunger, serious hardship and unemployment! This is all He can do?”

A tweep, FAISAL, who identifies as @Iamumarfaisal, said, “This should be his personal assistance to his community as an influential and wealthy person. But making this look [like] a performance index being a Senator is shameless and denigrates the people he represents. We can do better Arewa.”

Continue Reading

News and Report

Viral list of ex-govs under investigation over alleged corruption false, misleading – EFCC

Published

on

By

The Economic and Financial Crimes Commission, EFCC has refuted a purported list of former governors under investigation for alleged corruption, which has now gone viral.

There were reports in the media that 58 former governors were under the investigation of the anti-graft agency over alleged corruption.

The former governors, according to reports, were accused of misappropriating N2.187 trillion over 25 years.

The 58 former governors were being probed, while others have been investigated, and prosecuted.

Reacting to the development, the EFCC spokesman, Dele Oyewale, in a statement on Sunday, described the reports as false and misleading.

He said, “the so-called list is a disingenuous fabrication designed to achieve motives known only to the authors.

“The Economic and Financial Crimes Commission, EFCC, feels obliged to dissociate itself from a phantom report circulating in sections of the media claiming it has released a full list of ex- governors being investigated for alleged corruption.

“The report headlined: “EFCC Releases Full List of 58 Ex- Governors that Embezzled N2 .187 Trillion”, in one of the news outlets, is false and mischievous as the Commission neither issued the said list nor entertained discussions on investigation of ex-governors with any news medium.”

The anti-graft agency, however, urged the public to disregard the report, saying “it is false and misleading.”

It also urged media practitioners to crosscheck facts about matters under investigation with the Commission to avoid misleading the public with false and inaccurate reports.

Recall that the EFCC has been probing some former governors over allegations of corruption and misappropriation of public funds.

The anti-graft agency is probing former Governor, Yahaya Bello of Kogi State.

He has been arraigned on 19 counts bordering on alleged money laundering, breach of trust, and misappropriation of funds to the tune of N80.2 billion.

According to the EFCC, the embattled ex-governor withdrew $720,000 from the state’s accounts to pay his child’s school fees in advance just before he left office on January 27, 2024.

The EFCC said Bello moved the money from the state coffers to a Bureau de Change operator, and used the money for his child’s school fee in advance.

 

Continue Reading

News and Report

Dangote University explains how female student died in her off-campus apartment

Published

on

By

Tragedy struck on Thursday at the Aliko Dangote University of Science and Technology, Wudil, Kano State, when a female student, Aishat Yahaya Olabisi, was found dead in her off-campus apartment.

Olabisi, a 300-level female student of Food and Science Technology, was said to have been found dead after she returned to her room from the school.

The deceased student was said to have written her first examination in the ongoing first-semester examination at the university on the fateful day.

One of the male students who spoke to PUNCH Online on condition of anonymity on Saturday blamed her sudden passing away on examination pressure.

“The deceased was hale and hearty before she went out to write her first examination in the ongoing first-semester examination,” the student said.

However, following reports in the media that the female student died in the university students’ hostel, the Management of the university clarified the misinformation.

In a statement by the Dean, Students Affairs of the university, Prof. Abdulkadir Dambazau, dated 3rd May 2024, refuted the media claims.

The statement titled “Clarification Regarding False Statement About Student’s Death” read, “It has come to our attention that a recent statement made by DLC Hausa and some media outlets regarding the discovery of a student’s corpse at the students’ hall of residence is entirely false. We wish to address this matter promptly and unequivocally refute these claims.

“On 23 April 2024, we received news about the untimely passing of Yahaya Aishat Olabisi, a diligent and bright student of ADUSTECH Wudil. Aishat spent her last evening engrossed in her studies, diligently preparing for upcoming examinations. The following morning after a shared breakfast with her roommate and a heartfelt conversation with her father, she expressed her intent to rest briefly before resuming her studies. However, destiny had a different plan.

“In the early afternoon of the same day, concerns arose when Yahaya Aishat Olabisi did not respond to attempts to reach her. Upon investigation, it was discovered that she had passed away in her sleep in her off-campus residence. Immediate measures were taken, and she was swiftly taken to the university clinic, where her passing was confirmed by medical professionals.”

The statement added that Olabisi’s remains had been transferred to the Aminu Kano Teaching Hospital for postmortem analysis.

“Given the circumstances, her remains were transferred to Aminu Kano Teaching Hospital for postmortem analysis to ascertain the cause of her sudden demise. Meanwhile, her grieving parents, who hail from Ilorin arrived the following day to bid farewell to their beloved daughter.

“In honouring her memory and bidding her farewell, Aishat was laid to rest on 24 April 2024, surrounded by family, friends, and members of the academic community who mourned her loss deeply,” the statement added.

Continue Reading

Trending