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Nigeria’s Second Recession

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Nigeria is in her second recession in five years and on the news, we had Dr Emma Anoliefo, a Philosopher and a Scholar of Political Economy of the Alternative Persuasion. He is the National Coordinator Technical of Save Nigeria Economy Movement And Founder of Coalition of Scholars For Alternative Development Agenda for Nigeria (COSADAN)

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Nigeria’s First Cargo of New Crude Oil Anyala, Set for Europe

This development is coming less than three months after the announcement of the commencement of oil production from the Anyala West field in Oil Mining Leases 83 and 85.

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Nigeria’s first cargo of the newest crude oil Anyala is on its way to Northwest Europe, according to trading and shipping sources.

This development is coming less than three months after the announcement of the commencement of oil production from the Anyala West field in Oil Mining Leases 83 and 85.

Oil Mining Leases 83 and 85 are in the shallow waters offshore Bayelsa State, Southern Nigeria where FIRST E&P is the operator of the two blocks, on behalf of the Nigerian National Petroleum Corporation/FIRST E&P Joint Venture.

The international oil benchmark, Brent crude, downed by $0.35 to $54.75 per barrel as of 8:15 pm Nigerian time on Monday.

The Aframax Minerva Clara loaded a 700,000-barrel stem of Anyala crude from the Abigail-Joseph floating production, storage and offloading vessel on January 10, and the tanker is on its way to the Fos-sur-Mer terminal, located at France’s Mediterranean port of Marseille, according to data intelligence firm Kpler.

S&P Global Platts quoted sources that a trading house, Vitol, had chartered this tanker, as it has a stake in indigenous producer FIRST E&P.

A market source said the cargo was likely to travel from Fos-sur-Mer to the Cressier refinery in Switzerland through the SPSE pipeline.

The 68,000 bpd Cressier is operated by Varo Energy, which is a joint venture between Vitol, a private equity fund the Carlyle Group, and private investment fund Reggeborgh.

Sources also said that a second cargo will load in March, with some Asian refiners already showing buying interest.

Furthermore, sources added that Anyala has been labelled a medium sweet crude grade, similar in quality to Nigeria’s flagship crude Bonny Light.

When refined, Anyala will produce a high yield of middle distillates, making it attractive to both simple and complex refineries.

The new crude is from Nigeria’s shallow-water Anyala West oil fields in the Niger Delta, the southern part of Nigeria which struck first oil in November.

The fields in blocks OMLs 83 and 85 are expected to reach 60,000 bpd when fully developed, according to FIRST E&P.

Anyala is Nigeria’s newest oil development since the start-up of the giant Egina field in late-2018.

Seven development wells have been planned in Phase 1 in the Anyala West field (OML 83), which will be developed along with the nearby Madu field in (OML 85). The project is estimated to contain 300 million barrels of crude oil recoverable reserves.

Nigerian oil output has fallen sharply in the past six months as it has come under pressure to adhere to its OPEC+ cut obligations. Some of the country’s key grades like Qua Iboe, Forcados, and Brass River have also recently faced outages.

Nigeria’s crude and condensate production slumped to around 1.66 million bpd in 2020 from 2.04 million bpd in 2019, according to S&P Global Platts estimates. This was its lowest annual output figure since 2016, when militancy in the Niger Delta pushed output to as low as 1.60 million bpd.

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Algeria Reduces Hydrocarbon Exports by 11 Per Cent

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Algeria reduced its hydrocarbon exports by 11 per cent to 82.2 million tonnes of oil equivalent (TOE), the country’s Ministry of Energy has said.

According to the ministry, the total volume of hydrocarbon exports in 2020 reached 82.2 million TOE amounting to $20 billion, “i.e. down by 11% and 40% respectively compared to 2019.”

Oil exports from the North African country stood at 571,000 barrels per day in 2019, while exports of the natural gas were 42.5 million cubic meters (over 1.5 billion cubic feet), in line with the data from the Organisation of the Petroleum Exporting Countries.

With Algeria ranked in the world’s top ten gas producers, authorities adopted in November 2019, a law on hydrocarbon resources, designed to facilitate the work of foreign companies.

The law is also expected to boost the inflow of much-needed investment in the country’s oil industry, which has been halted and required foreign investments in order to recover.

Earlier in the month, Algerian Energy Minister Abdelmadjid Attar expressed hope that oil prices would remain above $50 per barrel in the first half of 2021.

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Nigeria Bourse Resumes Week With N40Bn Loss

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Nigerian Stock Exchange to complete public listing

The Nigerian stock market opened for the week on Monday with a loss of N40 billion, halting five consecutive days positive run.

Speficially, the market capitalisation which opened at N21.530 trillion shed N40 billion to close at N21.490 trillion.

Also, the All Share Index which opened at 41,176.14 lost 93.76 points or 0.23 per cent to close at 41,082.38.

The downturn was impacted by losses recorded in medium and large capitalised stocks, among which are; Dangote Cement, Flour Mills, Guinness, NASCON Allied Industries and FBN Holdings.

Analysts at United Capital said that investors would take advantage of gains posted recently to book profit.

“While we expect investors to book some profit from last week’s gains, demand for high-yield dividend companies should sustain the market’s bullish momentum,” they said.

An analysis of the price movement chart shows that Japaul Gold and Ventures led the losers’ chart in percentage terms, losing 6.58 per cent to close at N1.42 per share.

Flour Mills trailed with a loss of 5.49 per cent to close at N31, while Wema Bank dipped 5.33 per cent to close at 71k per share.

Neimeth shed 4.76 per cent to close at N2, while GlaxoSmithKline depreciated by 4.29 per cent to close at N6.70 per share.

Conversely, African Alliance Insurance, AIICO Insurance, Cadbury Nigeria, R.T. Briscoe, Trans-Nationwide Express and Universal Insurance dominated the gainers’ chart in percentage terms, gaining 10 per cent each, to close at 22k, N1.32, N10.45, 22k, 88k and 22k per share, respectively.

BOC Gases followed with 9.98 per cent to close at N13.77, while Livestock Feeds rose by 9.95 per cent to close at N2.32 per share.

Meanwhile, the total volume of shares traded increased by 10.77 per cent as investors bought and sold 738.53 million shares worth N4.17 billion in 7,396 deals.

This was in contrast with 666.61 million shares valued at N6.39 billion achieved in 6,980 deals on Friday.

Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 92.36 million shares worth N145.79 million.

Universal Insurance followed with 51.79 million shares valued at N10.41 million, while Transcorp traded 43.15 million shares worth N46.17 million.

FBNH traded 39.77 million shares valued at N298.25 million, while AXA Mansard Insurance transacted 38.19 million shares worth N63.88 million.

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