President Muhammadu Buhari has flagged-off drilling activities in the Kolmani River II oil well in the Gongola basin of Benue Trough, Bauchi state.
The “spud-in”, as it is known in the oil industry, is the second attempt at actual oil drilling in the basin following an earlier undertaking by some international oil companies (IOCs) in the early 90s but was abandoned midway.
The president also ordered the Nigerian National Petroleum Corporation (NNPC), to extend oil exploration to six basins in the country.
A statement by Ndu Ughamadu, spokesman of NNPC, said the state oil firm acquired advanced data and technology to drill deeper for more discoveries in the Gongola basin, following a presidential directive.
Speaking at the inauguration ceremony on Saturday, Buhari commended the NNPC for its role in “re-invigorating exploration operations in the basin”.
He said the exercise would help Nigeria secure her energy sources, making for a “balanced resource distribution, strong economic base, and industrialisation”.
Buhari, who also doubles as the minister of petroleum resources said that a key aspect of the Economic Recovery and Growth Plan (ERGP) is to “ensure national energy sufficiency” which can only be achieved by exploring for hydrocarbon resources not only in the conventional basins but also in the frontier basins.
A frontier basin is a basin where exploration activities have not been carried out or a basin with short-term exploration activities with a significant volume of undiscovered hydrocarbon resources.
Buhari said exploration would soon commence in other basins located in Chad, Bida, Dahomey, Sokoto, and Anambra.
In his presentation, Maikanti Baru, group managing director, said neighbouring countries were making hydrocarbon discoveries from their own end of the basin, hence the corporation’s drive to resume exploration activities at a higher level.
He explained why the IOCs withdrew from the frontier basins, adding that government will take on the initial risks that come with exploring in the host communities.
“While the IOCs who previously explored the basin through Kolmani River-1 well, drilled down to less than 9,000 feet, the corporation would go as deep as 14,500 feet in the Kolmani River-II well,” Baru said.
“There is already a well that was drilled back in 1999 by SNEPCo, and at that time, the amount of hydrocarbons were not commercial in their own judgement but when we reviewed the data, we felt they did not complete the process and we came here based on the 3-dimensional seismic and other studies we have done.
“Of course, as you are aware, the Niger Delta is well explored and exploring frontier basins in areas that have not been explored are normally very risky and costly, and because the private sector does not want to take that risk, they expect the government to go out and look for it and once the reserves are established, then the private sector will come in and develop them.”
GTBank Releases Q1 2019 Unaudited Results…Reports Profit before Tax of N57.0Billion
Guaranty Trust Bank plc has released its unaudited Financial Results for the quarter ended March 31, 2019 to the Nigerian and London Stock Exchanges.
The Bank recorded positive performance across all financial metrics with gross earnings for the period growing by 1.2% to ?110.3billion from ?109.0billion posted in March 2018. Profit before tax improved to ?57.0billion from ?52.6billion recorded in the corresponding period of March 2018, representing a growth of 8.3%. Customers’ deposits also rose by 6.0% to ?2.410trillion in March 2019 from ?2.274trillion in December 2018, whilst the Bank’s Loan book grew by 1.6% from ?1.262trillion as at December 2018 to ?1.282trillion in March 2019.
Balance sheet remained strong with the Bank closing the quarter ended March 31, 2019 with Total Assets of ?3.556trillion and Shareholders’ Funds of ?627.2Billion. In terms of Assets quality, NPL ratio and Cost of Risk closed 7.03% and 0.05% in March 2019 from 7.30% and 0.34% in December 2018 respectively. In addition, coverage for NPL stood at 90.12% while Full Impact Capital adequacy ratio remained very strong, closing at 22.25%. On the backdrop of this result, Post Tax Return on Equity (ROAE) and Return on Assets (ROAA) closed at 32.79% and 5.76% respectively. These indices are pointer to GTBank’s strategic positioning in Nigeria and other Countries where the Group operates.
Commenting on the first quarter results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr Segun Agbaje, said; “Going into 2019, we knew that it would be a challenging year, but our strategy and unwavering focus on delivering value for our customers and shareholders continues to underpin our ability to consistently deliver solid results despite changing market variables. We carried on the momentum of the previous year, posting strong growth in earnings, effectively managing costs and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”
He further stated that; “Whilst ensuring the long-term growth of our business is the greatest value that we can create for our communities, we are also leveraging our resources, expertise and network to help people thrive. That’s why, from April 28 to May 1, 2019, we are organizing the biggest food and drink festival in Africa to give small businesses in the food industry the platform, network and access to the markets that they need to grow.”
GTBank has continued to be best in class in terms of Profitability, Efficiency and Capital among Peers and other Financial Institutions in Nigeria. This is evidenced by its Earnings per Share of ?1.74, Return on Equity (ROAE) of 32.79%, Cost to Income Ratio of 38.64% and Capital Adequacy of 22.25%. These metrics are a testament to the efficient management of the Bank. In recognition of the Bank’s bias for world class corporate governance standards, excellent service delivery and innovation, GTBank has been a recipient of numerous awards over the years. Some of the Bank’s recent awards include 2018 Bank of the Year – Nigeria from the Banker Magazine and 2018 Best Banking Group and Best Retail Bank Nigeria from World Finance Magazine.
”Stop panic buying, there Is enough fuel in circulation – NUPENG
The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has advised Nigerians to stop panicking on rumours of fuel subsidy and an increase in the pump price.
A statement released a signed by the NUPENG South West Chairman, Tayo Aboyeji, states that Nigeria has enough petrol and diesel circulating in every state.
“Nigerians should stop spreading and listening to rumours of government removing fuel subsidy and increasing the pump price of fuel. We are not aware of such move, there is enough fuel in circulation and no increase has been made so far, ” Aboyeji said
The NUPENG boss cautioned Nigerians of the impending dangers of storing and stockpiling fuel at homes and shops, especially during this hot weather.
“Careless storage of fuel can lead to fire disaster both in the house or in the car,” Aboyeji advised.
Most fuel stations in many parts of the country have been thronged by anxious Nigerians buying petroleum products to store at home.
UBA,Sahara Energy In Messy Fight Over 15bn Loan.
UBA Plc has filed a winding up petition against Sahara Energy Resource Limited (Sahara Energy) at a federal high court in Lagos.
The petition was based on a N15 billion loan owed by KEPCO Energy Resources Limited (KEPCO).
Sahara Energy had stood as a guarantor to KEPCO.
A winding up petition is a legal action taken by a creditor or creditors against an insolvent company that owes them money.
It can also be filed against a company or companies who have served as guarantors of the defaulter, and if approved by the court, will lead to a closure of or compulsory liquidation of all the debtors assets to repay the loan.
The petition was filed before Mohammed Liman, a judge of the high court, by Temilolu Adamolekun, UBA’s legal counsel.
The bank said KEPCO had through a loan, raised capital to fund the acquisition of Egbin Power Plant, operated by Sahara Power Group, a privately-owned power company under the Sahara conglomerate.
How the ‘N15 billion debt’ came about
In 2013, the federal government granted KEPCO, a Korean company 70% stake of Egbin power plant at a sale value of $407.3 million, which was equivalent to N64.35 billion at the existing exchange rate.
In order to fund that acquisition, the petitioner said KEPCO had applied for a credit facility from several banks, including UBA, with Sahara Energy standing in as a “corporate guarantor” to secure the loan.
FBN Capital Limited and First Nigeria Limited were appointed as the facility agent and security trustee respectively.
UBA had therefore granted KEPCO a loan to the tune of $35 million in August 2013.
The petitioner said KEPCO failed to meet its obligations even after restructuring the loan on two different occasions.
The interest on the rescheduled debt is said to have increased the facility to $42,282,430.49 or NN15,221,674,976.40 as of December 31, 2018.
The petitioner said Sahara Energy had been notified several times to fulfill its obligation as a guarantor but had not done so, hence the the need to file a winding up order.
“The company herein is insolvent and unable to pay its debt. In the circumstances, it is just and equitable that the company should be wound up,” the petition read.
The petitioner also sought “an order that the company, Sahara Energy Resources Ltd, be wound up by the court under the provisions of Companies and Allied Matters Act.”
Following an ex-parte motion filed by Adamolekun, the bank’s lawyer, Liman ordered that the winding up petition be advertised in the federal government’s official gazzette and a national daily newspaper.
But Sahara Group has denied being indebted to UBA, saying it neither has outstanding facilities with the bank nor did it borrow any money from UBA.
The firm added that it did not grant a direct guarantee to UBA on any loan transaction that UBA could unilaterally enforce or sue on.
“Our lawyers have been duly instructed and have taken all necessary steps to ensure that the order is discharged or set aside as soon as practicable,” Sahara Group said in a statement.
“Sahara Energy Limited (SERL) and the entire Sahara Group will vigorously pursue and defend UBA’s petition to its logical conclusion with a view to dismissing the petition.
“SERL will provide periodic updates to its esteemed clients, suppliers and bankers as may be necessary, of steps being taken in connection with the suits and the results of effort to set aside the order and strike out the suit.”
The hearing of UBA’s petition has been adjourned till April 30.
World News6 months ago
I laughed when I read the story that I gave Israel ultimatum to return Nnamdi Kanu – Lai Mohammed
News1 week ago
Umar Mohammed Bago, Man With Passion For Service
News4 weeks ago
NDLEA Closes In On Sanwoolu’s Aide, Funke Phillips
Society News5 months ago
EXCLUSIVE: The Complete Story of Dolapo Awosika, John Fashanu and Prophet Kasali Sex Mess
Crime2 weeks ago
*GRAPHIC PICTURES* Yet Again SARS Officers Kill Lady, Leaves Her Boyfriend Unconscious In Lagos
Crime1 week ago
Alleged Gang-rape: Court Denies Babcock Varsity student Bail
Society News1 week ago
Nigerian Multimillionaire Oilman Igho Sanomi Raises $1.5 Million For Cancer Research UK
Crime1 week ago
Mother weeps profusely in court as suspected killers of her first class daughter plead not guilty