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Dangote to start crude production soon-Report

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By Kayode Sanni-Arewa

Amid feedstock challenges, the Dangote Group, owners of the Dangote Refinery, will soon commence crude oil production.

According to reports by S&P Global Commodity Insights, the Dangote Group is looking to start production at its two Nigerian oil assets in the fourth quarter of 2024.

The company, which has endured months of crude supply woes, would reportedly commence production at its two Niger Delta upstream projects in Oil Mining Leases 71 and 72, starting with about 20,000 barrels per day before ramping up further in the first quarter of 2025.

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“The company source said production at the company’s two Niger Delta upstream projects in Oil Mining Leases 71 and 72 would start at around 20,000 b/d, before ramping up further in the first quarter of 2025,” the report said.

The report stated that Dangote is currently seeking a floating production, storage and offloading vessel with a capacity of 650,000 barrels of crude.

The company, it was learnt, holds an 85 per cent stake in West African E&P Venture, which in turn has a 45 per cent working interest in the two blocks, alongside the state-owned Nigerian National Petroleum Company’s 55 per cent.

The other stakeholder in West African E&P is Nigerian upstream player, First E&P, which operates OMLs 71 and 72.

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“The licences are located in the shallow water in the southeast of the troubled Niger Delta, just 22 km from the onshore Bonny terminal. They contain the Kalaekule and Koronama oilfields.

“Discoveries were first made on the blocks in 1966, and Shell began production there two decades later. Output peaked at 21,000 b/d in 1999, before declining in 2003,” S&P explained.

However, according to Commodity Insights, the fields still hold recoverable resources of almost 300 million barrels of oil and as much as 2.3 trillion cubic feet of natural gas.

The report noted that though Dangote’s upstream activities are seldom discussed, the imminent startup of production at OMLs 71 and 72 suggests the Dangote refinery could soon supplement its crude feedstock, after battling crude supply issues for months.

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The $20 billion facility came online in January, and started up its residue catalytic cracker in early September, allowing for high-volume petrol production when the unit stabilises.

Built by Africa’s richest man, the refinery was designed to end Nigeria’s decades-long dependence on imported refined products. To date, it has produced volumes of gasoline, diesel, gasoil, jet fuel and naphtha, for domestic use and export.

However, the plant struggled to obtain sufficient Nigerian crude in its early months, forcing it to import large volumes of WTI Midland crude from the US, and sparking a bitter public row between the NNPC, international oil companies, Dangote and Nigeria’s upstream regulators.

Data from S&P Global Commodities at Sea shows Dangote took just under 200,000 bpd of Nigerian crude in September and it has not imported any US crude since mid-July.

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However, Dangote may acquire crude from other oil producers, including Libya, Senegal and even Brazil, with company sources warning that NNPC could only be able to fulfil 60 per cent of its crude demand.

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Reps Debate 2025 Budget Estimates, Demand Better Allocation for Security, Agriculture

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By Gloria Ikibah

The House of Representatives has approved the 2025 budget proposal for a second reading, calling for better funding for security and agriculture.
During Thursday’s plenary, presided over by Speaker Tajudeen Abbas, lawmakers debated the N49.7 trillion budget presented by President Bola Tinubu.
The debate was sequel to the adoption of a motion moved by the House Leader, Rep. Julius Ihonvbere to authorize withdrawals from the Consolidated Revenue Fund.
Rep. Ihonvbere who called for support, emphasised that the budget addresses key national challenges, “This proposal focuses on issues affecting Nigerians. It deserves swift consideration and passage”.
The budget highlighted defence, infrastructure, and human capital development. Defence and security were allocated N4.91 trillion, infrastructure N4.06 trillion for key highways, while education and health sectors received N3.52 trillion and N2.48 trillion respectively. The budget projects N34.82 trillion in revenue, leaving a N13.39 trillion deficit to be financed through borrowing.
Key economic assumptions include reducing inflation from 34.6% to 15% and improving the naira exchange rate from N1,700/$ to N1,500/$. Oil production is targeted at 2.06 million barrels per day.
Lawmakers’ Contributions
Rep Abdussamad Dasuki, lawmaker representing Kebbe/Tambuwal federal constituency of Sokoto state, commended President Tinubu’s leadership but called for a review of budget estimates. He also criticized the allocation to the North-West Development Commission, questioning the criteria used.
“On paper, this budget looks robust, but in dollar terms, it falls short. The Finance Committee must address this,” he urged.
Rep Ismaila Dabo (Bauchi) emphasised the need for adequate funding for agriculture, citing rising food prices. He also urged the government to focus on revenue generation rather than excessive borrowing.
“Inflation on food is unbearable. Agriculture needs proper funding to ease the burden on Nigerians,” he said.
Rep Ahmad Jaha, representing Damboa/Gwoza/Chibok, Federal constituency of Borno state stressed the importance of security funding.
“Security is crucial to achieving other targets, including oil production. The N4.91 trillion allocated is inadequate,” he noted.
Rep Jeremiah Umaru from Nasarawa State,  questioned the allocation to the South-West Development Commission (SWDC), even as he cited the absence of a constituted board and argued that the allocation was premature.
Deputy Chief Whip, Rep. George Ozodinobi advocated increased funding for the South-East Development Commission (SEDC).
“The allocation for the SEDC is insufficient for its take-off. More funding is needed,” he argued.
Concerns Over Projections
Minority Leader, Rep. Kingsley Chinda criticized the economic targets, and said that they are unrealistic.
“Reducing inflation to 15% and improving the exchange rate to N1,500/$ are overly ambitious. These projections do not align with current realities,” he stated.
Call for Peace Initiatives
Rep Chike Okafor from Imo state, urged the Federal Government to explore non-violent solutions to security challenges, including the release of Nnamdi Kanu.
“Releasing Kanu could aid peace efforts in the South-East,” he said.
The House adjourned plenary until January 14, 2025.
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Tinubu expresses sadness over Ibadan stamped victims, demands probe

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President Bola Tinubu has expressed sadness over the victims of the tragic incident at a children’s funfair in Ibadan, Oyo State, which claimed innocent lives and left many others injured.

A day after the tragic incident, 35 minors have been confirmed dead in a stampede at a funfair held at Islamic High School, Orita Bashorun, the state capital.

The President in a statement by his spokesman, Bayo Onanuga, extended his condolences to the government and people of Oyo State and, most importantly, to the grieving families who have lost their children in the unfortunate event.

President Tinubu has urgently directed the relevant authorities to investigate the circumstances of this tragedy thoroughly,” the statement read.

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The President extends his heartfelt condolences to the Government and people of Oyo State, as well as to the grieving families who have lost their beloved children.

“In this moment of mourning, President Tinubu stands in solidarity with the affected families and offers prayers that the Almighty God will grant peace to the souls of those who have departed in this unfortunate event.”

Tinubu highlighted that it is imperative to determine whether negligence or deliberate actions contributed to this painful incident, ensuring a transparent and accountable process.

He also urged the Oyo State Government to take every necessary measure to prevent such a tragedy from reoccurring.

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Among the essential actions are a comprehensive review of all public events’ safety measures, strict enforcement of safety regulations, and regular safety audits of event venues.

“Furthermore, President Tinubu calls on event organisers to prioritise the safety of all attendees, especially children. He stresses the importance of integrating professional security, protocol, and logistics at events to ensure the utmost safety of all participants,” the statement read.

He reiterated his administration’s commitment to the safety and well-being of children, arguing that no event should ever compromise their safety or take precedence over their lives.

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How soldiers damaged my house for doing my job – ECTDA Chair, Hon. Uche Anya

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The Chairman of the Enugu Capital Territory Development Authority, ECTDA, Rt. Hon. Uche Anya has narrated how soldiers from 82 Division of the Nigeria Army invaded his residence by 2.30am and destroyed his residence for carrying out a town planning regulation on an army property in Enugu.

According to Anya, the soldiers who some of them were on mufti, in the wee hours of Sunday morning, invaded his residence with armoured personnel carriers, forcefully jumped into his compound and destroyed most parts of his house and abducted him.

His offence, he explained, was that he demolished a fence that was being made round an army property at GRA area of the Coal City, which the army did not obtain approval plan and permit from his office before embarking on the construction.

“We pleaded with them that we are from the ECTDA and needed to see their approved plan and permit but they asked me to call the General Officer Commanding (GOC) 82 Division, Enugu.

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“We insisted on seeing their approval, which they did not provide, leading to our stopping them from working and marking the place with ‘Stop Work’ notice immediately.”

He said that he thereafter reached out to the GOC and informed him about what transpired, but that the army said that they were trying to secure their land.

“I told him that under our law, once a development is taking place in the capital territory, there must be permission. So, three days later, in the course of our routine work, we discovered that they had wiped out our stop work order and proceeded with the work. We rolled down our equipment and pulled down the fence because they reneged on our agreement,” Anya narrated.

The Capital Territory Chairman said that two hours later, he started noticing strange movement around his street, with some people taking photographs.

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“So, around 2:30a.m, two Armoured Personnel Carriers (APCs) arrived on my street. Some people in mufti with guns jumped into my compound and I was seeing them through my CCTV. They tried to break into the house but it took them almost 90 minutes to break in through the kitchen.”

When our correspondent visited Anya’s residence, there was a total smash of most properties in the house starting from the gate to the entrance door and windows, television sets, CCTV cameras and so many other things were in complete ruin.

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