Beruflich Dokumente
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Table of Content
2014 0utlook
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DISCLAIMER
This report is based on information from third parties that we believe are reliable; however, no, representation is made that it is accurate or complete. While reasonable care has been taken in preparing this document no responsibility or liability is accepted for errors or fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer or solicitation to any person to enter into any trading transaction.. Whitehall Capital Partners Limited accepts no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. This report is for private circulation only. This report may not be reproduced distributed or published by any recipient for any purpose without prior express consent of Whitehall Capital Partners Limited.
Acronyms
AHTs BOD BRIC DPR EPC FPSO Anchor Handling Tugs Board of Directors Brazil, Russia, India, and China. Department of Petroleum Resources Engineering , Construction Procurement and
Floating production storage and offloading Fast Supply Vessel and Intervention
Gross Domestic Products International oil company Memorandum of understanding Organisation for Economic Co-
operation and Development Operations and Maintenance Oil Producing Countries and Exporting
PSV PIB
2014 OUTLOOK
1 2
The signing of loan syndication agreement and plan by the Dangote Group to invest $9 billion to build a refinery/petrochemical/fertiliser complex expected to come on stream by 2016. is a gamechanging development that has the prospect of stimulating the growth and development of the downstream sector of the petroleum industry with far-reaching implications for Nigerias economic growth and transformation. It is expected that the licensing of private refineries will boost job creation and stem petroleum product importation and conserve foreign exchange outflow.
Outlook for the Nigerian Oilfield services sector is expected to be bullish driven by increasing energy demand, new deep water discoveries, and enhanced oil recovery from existing fields
3
It is expected that inflation will remain single-digit .The explicit target for headline inflation of between 7% and 9% for 2014 is attainable. This achievement has barely registered in domestic debt markets, which will be driven by modest fiscal slippage and tapering concerns. Monetary policy may well be tightened as the MPC seeks to lock in offshore investors in the face of fragile oil production.
4
Focus moves from reform to elections. The window for the FGN to pursue its reform agenda has passed, and the focus has moved to the elections due in Feb 2015. The outcome of the elections is clouded by too many uncertainties. There are no marked policy differences among the protagonists, whose energies will be channelled into forging local and national alliances
OUTLOOK
5
On-going and Planned Reforms in the Petroleum Sector: the PIB is currently being delayed at the National Assembly, we are optimistic that the Bill will be passed before the general elections in 2015. The local content initiative of the FGN and the passage of the Petroleum Industry Bill (PIB) will create tremendous opportunities and investments in the oil sector, particularly in the upstream and midstream sectors.
6
Transnational Corporation of Nigeria Plc, a conglomerate with interests in energy and hospitality has announced plans to produce its first oil next year. The company said yesterday in an emailed note to investors that it would pump oil from Lease 281 in the Niger River delta by the end of 2014. It also plans a 5-star hotel in the oil-rich region.
7
SEPLAT is an indigenous exploration and production company incorporated in 2009 by Shebah Nigeria and Platform Nigeria. The companys main objective is to take advantage of oil assets divestitures by IOCs in the onshore and shallow water areas. Seplat holds 45% interest in, and operates OML(s) 4, 38 and 41 acquired from Shell Petroleum Development Company (SPDC) in 2010. The company plans to raise a minimum of $500 million via issuance of new shares in an Initial Public Offer (IPO) with dual listing on the Nigeria Stock Exchange (NSE) and the main board of the London Stock Exchange (LSE). The implication here is that the company will be forced to raise its corporate governance standards and abide with the UK corporate governance code, which is actually considered to be a global benchmark.
167.7
924 182
1535 257.43
142.52 94.64
Nigeria
Current account balance (billion $) Refinery capacity (1,000 b/d) Output of petroleum products (1,000 b/d Natural gas exports (billion cu. m.) Exports of petroleum products (1,000 b/d) Crude oil exports (1,000 b/d)
23.41
445 82.4
28.27
8.2
2368
The most populous country within OPEC, Nigeria has over 167 million inhabitants. Located on the Gulf of Guinea on Africas western coast, Nigeria covers an area of around 924 thousand square kilometres. Abuja, the capital since 1991, has a population of more than one million. English is Nigerias official language, although many local languages such as Hausa, Yoruba, Igbo and Ijaw are also spoken. Apart from petroleum, Nigerias other natural resources include natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc and arable land. The oil and gas sector accounts for about 35 per cent of gross domestic product, and petroleum exports revenue accounts for about 70 per cent of total exports revenue. Its currency is the naira. According to the world fact book, GDP rose strongly in 2007-12 because of growth in non-oil sectors
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According BP statistical review 2013, Global oil consumption grew by 890,000 barrels per day (b/d), or 0.9%, below the historical average. Oil had the weakest global growth rate among fossil fuels for the third consecutive year. OECD consumption declined by 1.3% (530,000 b/d), the sixth decrease in the past seven years; the OECD now accounts for just 50.2% of global consumption, the smallest share on record.
Outside the OECD, consumption grew by 1.4 million b/d, or 3.3%. China recorded the largest increment to global consumption (+470,000 b/d, +5%) although the growth rate was below the 10-year average. Japanese consumption grew by 250,000 b/d (+6.3%), the strongest growth increment since 1994. Light distillates were the fastest-growing rened product category by volume for the rst time.
Since 2009.Global oil production, in contrast, increased by 1.9 million b/d, or 2.2%. OPEC accounted for about three-quarters of the global increase despite a decline in Iranian output (-680,000 b/d) due to international sanctions. Libyan output (+1 million b/d) nearly regained all of the ground lost in 2011. For a second consecutive year, output reached record levels in Saudi Arabia, the UAE and Qatar. Iraq and Kuwait also registered signicant increases. NonOPEC output grew by 490,000 b/d, with increases in the US (+1 million b/d), Canada, Russia and China offsetting unexpected outages in Sudan/South Sudan (-340,000 b/d) and Syria (160,000 b/d), as well as declines in mature provinces such as the United Kingdom and Norway
UPSTREAM
Upstream operations deals with the exploration stages of the oil and gas industry, with upstream firms taking the first steps to locate, test and drill for oil and gas. once reserves are proven, upstream firms will extract any oil and gas from the reserve. The upstream sector also involves processes including the searching for and the recovering of crude oil as well as its production. In the upstream sector, discovery or exploration of crude oil takes place which involves intensive and extensive efforts towards ascertaining the actual places where crude oil is located. 2013 witnessed a more widespread improvement in the global economic environment, and expectations are that the often touted green shoots of recovery may survive the winter. Europe is not yet out of the woods, the aftershocks of the Arab Spring rumble on, and BRIC growth rates continue to slip, but the outlook is still cautiously optimistic. Despite this, 2013 upstream oil and gas M&A activity has been at its lowest level in volume terms since 2003, in contrast to the resilient transactions market and resurgent spend levels of last year. Reported total transaction value was down by 17% from 2012. Excluding CNPCs unprecedented $60 billion long term crude supply agreement with Rosneft, transaction values were down 40% from 2012; the lowest total since 2008.
Howard Midstream Energy Partners LLC has begun construction on two major liquid handling facilities the Live Oak Stabilizer, an off-spec liquids stabilizer facility near Three Rivers, Texas, and the Brownsville Liquids Terminal, a bulk liquid storage facility within the Port of Brownsville, Texas. Both projects are expected to be completed by mid-2014. Located within the Port of Brownsville, in Foreign Trade Zone 62, the Brownsville Terminal will consist of 21 tanks providing a total of up to 225,000 barrels of bulk liquid storage for upstream, midstream, and downstream hydrocarbons, and other bulk liquids requiring custom terminal services. This automated terminal includes access to a Panamax-class dock with oceangoing vessel and inland barge capabilities, a three-bay truck rack with on-scale loading capabilities, an 11railcar loading and unloading facility, steam heating, real-time product monitoring and control systems, and specialized infrastructure for commodity blending. According to Deloitte LLP 2014 outlook, the Midstream sector, which includes the processing, storing, transporting and marketing of oil and gas, should increase following what has been an explosion in initial development. Last year showed signs of burgeoning infrastructure spending, as midstream capital spending rose 263 percent to $46.4 billion
Ernst & Young 2013 Global oil and gas review indicated the number of midstream announced deals (90) was down by almost 14% in 2013. However, reported or disclosed deal value increased to $71 billion in 2013, an increase of about 17% as against 2012. Midstream transaction activity, both in terms of the number of deals and the reported value of deals, is dominated by the US and Canada. The two countries accounted for more than 70% of all midstream deals and about 70% of the global midstream disclosed value. The report further stated that the deal activity involving pipelines accounted for the largest portion of midstream activity 36 out of the total of 90 deals (40%) and almost $27 billion in disclosed value (about 39% of the total). There were 33 transactions involving gathering assets in 2013 (37%), with total disclosed deal value of almost $27 billion (about 40% of the total). As with the other segments, asset transactions dominate the midstream landscape, accounting for 77% of all deals and about 59% of all disclosed transaction value
Nature of asset
US gas transmission and storage assets Global LNG assets US natural gas and gathering systems US Gathering and processing assets US Gathering and processing assets
Sellers
Spectra Energy Corporation Repsol SA PVR Partners LP
Buyers
Spectra Energy Partners LP Royal Dutch Shell Regency Energy Partners LP Crosstex Energy LP Kinder Morgan Energy Partners LP Energy Transfer Partners LP Institutional Investors
Value(US$M)
11124
26 Feb 10 Oct
6700 5497
21 Oct
4700
30 Jan
4640
21 Mar
Remaining interest in former 11.7% interest in italian gas storage, pipeline and distribution assets Gas Transmission and storage assets in france US Gas gathering and processing assets
3750
8 May
3693
5 Apr
Total SA
3262
6 May
2167
1 Apr
2051
DOWNSTREAM
The downstream sector of the oil and gas industry involves the refining of the crude oil and/or raw natural gases obtained in the upstream sector as well as selling or distributing the products obtained. Many products are derived from the refining of crude oil and these may include diesel oil, liquefied petroleum gas (LPG), asphalt, petroleum coke, gasoline, fertilizers, antifreeze, plastics, rubbers, pesticides, synthetic rubber, jet fuel and many more.
DOWNSTREAM CHALLENGES
The downstream sector of the industry has broad scope and tentacles. These include crude supply, trading, refining, product distribution, marketing and retailing. Lots of products are involved here including conventional fuels such as gasoline and diesel and low carbon fuels such as bio diesel. Lots of challenges are faced in the downstream oil and gas sector. The operating capacity of the global refining industries is continually constrained and therefore there is need for expansion in their various phases. Crude oil produced today is becoming heavier and sourer and product specifications are tightened by increasing strict environmental legislation. This has led to the need for changes in the refining configuration of many oil players. The main challenges faced downstream sector is as follows; Business Joint Ventures Global Refining Capacity Distribution Activities for Oil Products Crude Supply Mechanism Manpower and Economy Refinery incapability and the Need for expansion Pricing The cost of Services by
The downstream sector of the industry is the sector that relates with the consumers. Facilities involved in this sector include petrochemical plants, oil refineries, natural gas distribution companies, retail outlets and so forth.
The main processes involved in the upstream and downstream oil and gas operation include the following: Exploration
Extraction
Marketing
Transporting
Refining
Political events such as the Arab Spring, Iran nuclear crisis and the Syrian civil war all contribute to geopolitical tensions and reflect the uncertainties in which the oil and gas industry operates under.
Economics: GDP growth is impacted directly by oil and gas prices and therefore there is a link between energy consumption and the strength or weakness of the global economy. Global oil demand as at 1st half of 2011, stood at 87.8mpbd while supply was 87.15mpbd but these figures are higher than 86.8mpbd and 86.4mpbd for 2010. However, they are lower than earlier projections because of slowing global economic recovery especially in developed countries. As economic growth slows in emerging economies of China and India, prospects for increased global oil demand are also dimming. When oil prices are low, demand especially in the transportation sector grows rapidly and at high prices demand destruction takes place. Due to the link between prices and demand, investment decisions are made based on long term view of prices. Most oil companies manage the volatility of oil price and governments must do likewise if they are natural resource dependent like Nigeria. In low price environments, incentives are used by governments to attract investors
Security: The third factor is security. Resource nationalism often creates a demand by some sub-national groups for resource control and more equitable distribution of natural resource proceeds. Due to the high natural resource economic rent, there is often a contest by the ruling elite resulting in agitation which can sometimes breed violence. The recent NigerDelta militancy is a typical example of this phenomenon which has been tackled by the implementation of the amnesty program. In many areas of the world, border disputes are often aggravated by the presence of natural resources. For example the Spratly islands in the South China Sea where various nations are laying claims to what is thought to contain significant natural resources. Nearer home the recently resolved Nigeria Equatorial Guinea border disputes and the Nigeria Cameroun (Bakassi) disputes are examples of how the control of natural resources can create security challenges among neighbors. Similarly, external interests often follow natural resource opportunities.
Environment: Oil and gas operations need to be properly carried out to minimize environmental footprints especially in sensitive coastal areas because hydrocarbons can be pollutants if improperly handled. The environmental impacts of improper handling of oil and gas activities are evident in illegal bunkering, artisan refining activities and land or water pollution. There are numerous sites in Nigeria where environmental degradation is quite acute. The recent UNDP report on Ogoni land for example has shown the devastation caused by such activities. The consequential environmental degradation from pipeline vandalism also requires significant investment in the future to remediate. The government of Nigeria is tackling such activities through enforcement and the Hydrocarbon Pollution Restoration Program (HYPREP)
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its policies and creating and enabling investment in the sector, Marketers are
responsible for the importation and supply of petroleum products throughout the country or to contract for the supply of petroleum from local refineries in line with key prescribed regulations.
Nigeria has an abundance of natural resources, especially hydrocarbons. The petroleum industry in Nigeria is the largest industry and main generator of GDP in the country. It is the 10th largest oil producer in the world, the third largest in Africa and the most prolific oil producer in Sub-Saharan Africa. An OPEC member since 1972, Nigeria has proved reserves of oil at 36.22 billion barrels.
The Nigerian economy is largely dependent on its oil sector which accounts for 95% of its foreign exchange earnings. According to an Ernst and Young Report 2011 on oil and gas, at the end of 2010, African oil and natural gas reserves were estimated to be between 200 210 billion barrels of oil equivalent (boe), with the Oil & Gas Journal providing a slightly higher estimate than the US Department of Energy (DOE). Reserves are currently dominated by Nigeria, Algeria and Libya, which collectively account for more than 77% of the regions total proved reserves.
The Oil and Gas industry is divided into three major categories below:
The Oil and Gas industry is divided into three major categories below
The upstream oil industry is the single most important sector in the countrys economy, providing over 90% of its total exports. It produces 1.825 million bbl/day. Oil is produced from five of Nigerias seven sedimentary basins: the Niger Delta, Anambra, Benue Trough, Chad, and Benin. The Niger Delta, the Onshore and Shallow Offshore basins can be considered to be fairly well explored. Ventures here are low risk and the basins contain about 80% of producing wells drilled in Nigeria Nigeria has the worlds 8th largest proved natural gas reserves at 5.215 trillion cubic meters and is a very important supplier of LNG to European buyers exporting over 20.55 billion cubic meters. The country has currently produced over 32.82 billion cubic meters and consumed over 12.28 billion cubic meters. The Nigerian government estimates $15bn private investment is required by the end of the year 2010 to meet its development goals. The downstream industry in Nigeria is another key sector in the countrys economy. The country consumes over 286,000 bbl/day. The country has four oil refineries, eight oil companies and about 750 independent petroleum products marketers.
Insufficient capacity utilization of the refineries has resulted in shortages of refined product and the need to increase imports to meet domestic demand.
Upstream
Midstream
Downstream
Saharareporters.com March 2014 Unsettled by questions swirling around the world about Nigerias missing crude oil earnings as well as the overall management of the Nigerian economy, Finance Minister Ngozi Okonjo-Iweala has launched a major public relations campaign to save her reputation from ruin. Several sources disclosed that the minister wants to insure her political survival while sending signals to the international financial community that she is angry with those behind the scandal in the oil sector, specifically Petroleum Minister Diezani Alison-Madueke.
In the last three months, Nigeria has been the focus of international attention. Reporters, financial analysts and investors have raised concerns about the unresolved controversy over the billions of dollars of crude oil sales that the Nigerian National Petroleum Corporation (NNPC) reportedly did not remit with the Central Bank of Nigeria. The 2013 Resource Governance Index (RGI) of the Revenue Watch Institute (RWI), which measures the quality of governance in the oil, gas and mining sector of 58 countries across the globe has placed Nigeria 40th in the overall global ranking.). The 58 countries that were accessed produced ca. 85 per cent of the world's petroleum, 90 per cent of diamonds and 80 per cent of copper. The extractive sector contributed a third of gross domestic product and half of total exports on average. Nigeria with oil revenues that totalled about $50.3 billion in 2011, ranked 40 out of 58 countries with relatively strong performance on its institutional and legal setting component contrasting with poor enabling environment (http://marineandpetroleum.com/content/nigeria-ranks-40th-quality-governanceoil-and-gas#sthash.luSXyncJ.dpuf) In conclusion the main issues can be summarised as follows: Substantial public access to information but incomplete revenue disclosure policies Nigerias minister of petroleum resources grants licenses for oil exploration, while the Department of Petroleum Resources (DPR), under the minister, oversees the licensing process and regulates the sector, yet some revenues in royalties, rents, license fees and bonus payments still bypass the treasury and are not reported to the legislature. Lack of contract transparency and incomplete reporting on most aspects of the petroleum industry. Government is yet to embrace openness and accountability in its operations Incomplete government monitoring, with substantial conflict-of-interest disclosure requirements, based on the practice where the Minister of Petroleum Resources still exercises wide discretionary powers in the award of oil licenses, with limited oversight of the process by the National Assembly.
Public Oil and gas 1977 Abuja, Nigeria Crude Oil, Gas, petroleum products, petrochemicals,
Website www.nnpcgroup.com
CHEVRON IN THE NEWS Chevron Reports Fourth Quarter Net Income of $4.9 Billion and 2013 Earnings of $21.4 Billion Chevron, GE Form Technology Alliance Chevron Announces Quarterly Dividend (Jan. 29, 2014) Chevron Makes Final Investment Decision on Alder Field in the United Kingdom Chevron Issues Interim Update for Fourth Quarter 2013
NNPC IN THE NEWS NNPC refutes product importation stoppage NNPC moves to intensify domestic gas use AlisonMadueke urges oil and gas operators to comply with nuclear regulations Revenue shortfall: NNPC flays relentless attacks on major crude oil arteries FG kicks off second marginal fields bid round assures of transparency and accountability in bid process Alleged unremitted $20b revenue: NNPC says CBN governor wrong again
Shell Nigeria
Type Industry Founded Ownership No of Employees Products Total Asset Website NA www.shell.com Public Oil and Gas 1961 100% RD Shell 1800
MOBIL IN THE NEWS ExxonMobil affiliates in Nigeria communicate key messages and company activities via publications and news releases. Mobil Producing Nigeria partners with FRSC on Road Safety Awareness ExxonMobil, NBA, WNBA, and Africare Launch New Empowerment Initiative for Nigeria's Youth Esso enrolls six new Universities under University support Program EEPNL Awards 13 International Post Graduate Scholarships to Nigerian Students
SHELL IN THE NEWS Shell starts production from second Mars platform in deep water Gulf of Mexico Shell starts production from second Mars platform in deep water Gulf of Mexico New Shell CEO Ben van Beurden sets agenda for sharper performance and rigorous capital discipline Royal Dutch Shell plc fourth quarter and full year 2013 results announcement
Phillips Nigeria
Type Industry Founded Ownership Headquarters Products Public Oil and gas 1977 100% ConocoPhillips Abuja, Nigeria Crude Oil, Gas, petroleum products, petrochemicals,
Agip Nigeria
Type
Industry Founded Ownership No of Employees Products
Public
Oil and Gas 1962 100% ENI NA Crude Oil, Gas, petroleum products, petrochemicals,
The oil and gas industry has lots of influences in the world today. Oil and gas have direct influence on every other commodity in the market. Therefore it is critical to identify risk and solutions through technological innovation to maintain global economic balance and need.
-Global Energy
It is believed that operational challenges are partially responsible for these divestments. Such divestments represent a major opportunity for local players to ascend into the league of major upstream players in Nigeria.
Local companies, today, own more than 100 oil blocks across the oil producing regions as well as 30 marginal ones. According to Ecobank this will most certainly double over the next few years. There is no single factor that can be attributed to the recent divestments, but we believe that a combination of several relevant trends such as, onshore operational and security threats, rationalising of IOCs local portfolios towards offshore opportunities, growing regional competition as well as global capital reallocation.
The delay in PIB is likely also a contributing factor. Such divestments have certainly lead to local financing opportunities. We note that Nigerias banks access to capital represents less than half of the US$2bn+ funding requirements for the next wave of divestments, in this way global and regional support will be required. (Ecobank research).
Furthermore the block winners in some cases were not able to make the initial signature bonus payment, let alone taking the field to production.
What is forward?
the
way
According to an article written by Jean Balouga in the International Association of Energy Economics Third Quarter review 2012 The high cost of funds is a factor that jeopardizes indigenous oil service companies ability to compete effectively with their counterparts from Europe and the United States, who are well endowed with capital. This untoward development has reduced Nigerian banks, not yet cut out for longterm projects and with a penchant for quick business and immediate returns, to mere cash centres. This has had a major negative impact on several projects in the Oil and Gas sector often ensuring failure as a result of the short term nature of funds being availed. He further goes on to assert that Policy makers in Nigerias oil and gas industry must seriously consider the idea of establishing a strong energy bank that would empower local contractors/investors. This would increase their level of participation and give them the necessary experience that would engender technology transfer. We are certainly in favour of this view as this would add depth to financial expertise within the sector. It is important to note that a number of marginal fields up for sale belonged to local players who till now were unable to access the necessary finance and technical expertise to explore their assets. Such was predicated by a number of factors such as volatility in the Niger Delta region as well as lack of transparency on the parts of the asset owners.
Also, Nigerias gas infrastructure development programme is expected to attract an investment of over N2.4tn ($16bn) within the next four years, in line with the three-point strategic focus of the Gas Master Plan (GMP). Therefore, opportunities for investments exist in the areas of financial services, gas transmission pipelines, pipe milling and fabrication yards, upstream gas development, LNG and LPG plants and gas processing facility/gas-based manufacturing industries
High
Medium
Threat of substitutes
Low
High
Moderate
The company intends to immediately re-enter the existing well on the block and begin commercial production
2013 witnessed a lot of activities in the oil and gas sector. There were new assets up for sale, new farm-ins, new
Chevron to sell its stakes in OMLS 83,85,52, 53 and 55 In June, 2013 Chevron put up 5 oil mining leases for sale(OML) as the international oil company exodus from the onshore area continues. The sale is being coordinated by BNP Paribas which was recently able to secure a staggering $ 1.8 billion for the ConocoPhillips assets. 20 companies were invited to bid for the assets Sale of more onshore assets by Shell Shell petroleum development company (SPDC) announced that it has begun a strategic review of the interests that it holds in selected offshore leases in the SPDC joint ventures . SPDC stated that it has been following a strategy of selective divestment of its onshore portfolio.
2013 Review
Sale of documents to prospective buyers for four oil blocks Shell sent out documents to prospective buyers of four oil blocks and pipeline it put up for sale, as the Dutch giant continues its determined exit from the onshore and shallow water areas of the prolific Niger Delta. The oil blocks up for sale were Oil Mining Leases (OMLs) 18, 24, 25 and 29, which together produced 70,000 barrels of oil last year. Also up for sale is the Nembe Creek Trunk Line (NCTL), a vital oil pipeline, which has frequently been targeted by oil thieves. Cameron signed with EEPNL an agreement An agreement was signed with EEPNL an ExxonMobil affiliate, for the supply of subsea production systems to the Erha North Phase 2 development. The scope of supply includes five subsea production trees, two water injection trees, three manifolds, production and topside controls and associated equipment. Deliveries will commence in 2014
It is essential that any investor purchasing marginal and shallow water oil blocks in the Niger Delta area, immediately engage the local community (through their elders/leaders) to ensure smooth operations.
Most vandalism and oil theft is as a result of disenfranchised communities throughout the region. It is also essential to study the failures of CSR strategies employed in order to undertake more effective strategies.
signed
Privatisation of Refineries The federal government plans to begin the privatisation of four of its state owned oil refineries before the end of the first quarter of next year. The refineries, which have a combined capacity of 445,000 bpd, should be privatised within 18 months. The refineries are 124,00bpd Warri Refinery, 60,000bpd Old Port Harcourt refinery, 150,000bpd new Port Harcourt refinery and 110,000bpd Kaduna refinery.
Pem offshore limited signed a US$1 million five-year contract (about N160 million), with Chevron Nigeria Limited, to train and promote human capacity development in the Nigerian maritime and petroleum sectors. The five year contract with Chevron is broken down into $200,000 (N32 million) annually, earmarked to train 40 Nigerians on scholarship who would be picked and pre-qualified by the oil major.
Petroleum stocks boosts NSE Market Capitalisation By N126Billion More blue chip companies witnessed price appreciation as equity trading at the nations bourse closed in an upward note on the 13th of November resulting to a further increase in market capitalization by N126b.
Senate
The Senate on the 14th of November 2013 adopted the report of its committee on the Medium Term Expenditure Framework and Fiscal Strategy Paper for the implementation of the 2014 budget, which fixed the oil benchmark at $76.5 per barrel. The 2013 budget is being implemented based on $79 per barrel after an initial disagreement between the two arms of government on the appropriate figure. The senators argued that there was inadequate explanation on the need to increase the oil benchmark contrary to President Goodluck Jonathans proposed $74 per barrel. They also complained about unsatisfactory implementation of the 2013 budget and an alleged overspending on recurrent expenditure to the detriment of the capital projects.
Specifically, at close of transactions the previous day, market capitalisation of the listed equities appreciated by N126 billion or 1.04 per cent to N12.234 trillion from N12.108 trillion recorded earlier. Also the All/ Share Index ASI improved by 395.29 basis points to 38293.59 points from 37898.30 point.
An analysis of the transactions showed that Conoil Plc led gainers table, appreciating by N5.80 kobo to close at N62.55 per share while Forte Oil followed with a gain of N5.50 kobo to close at N115.64 per share.
embark
on
Oil
Transnational Corporation of Nigeria Plc, a conglomerate with interests in energy and hospitality has announced plans to produce its first oil in 2014. Transcorp stated that it would pump oil from OPL 281 in the Niger River delta by the end of 2014. Transcorp partners in the block are Sacoil Holdings Limited (Sacoil) to develop and Energy Equity Resources Limited.
House of Reps disclose NNPC Sold $20.9Bn Crude, Remitted Only $7Bn The House of Representatives on the 21st of November 2013, ordered another round of investigation into crude oil sales and remittances by the Nigerian National Petroleum Corporation with focus on the volume and value of crude oil sales and remittances from January 2013 to date. The investigation, which will last four weeks, is to be conducted by an ad-hoc committee of the House. The resolution of the House followed a motion moved by Mr. Haruna Manu, who raised the alarm that about $13.9bn crude oil revenue could not be accounted for by the NNPC.
Afren Plc (AFR) a U.K. energy explorer in Africa and Iraq rose to a two-year high in London trading after finding more oil off Nigeria than previously forecast.
Afren on the 20th November 2013 climbed as much as 13 percent to 168 pence, the highest intraday price since July 2011. The company more than tripled its estimate of recoverable oil at the Ogo prospect, drilled with Optimum Petroleum Development Ltd and Lekoil Ltd, to 774 million barrels from 202 million barrels. Nigeria, Africas biggest oil-producing nation, accounts for most of Afrens sales, providing it with cash to invest elsewhere including South Africa and Kurdistan. The discovery looks to be one of the most important made in West Africa in recent history.
N3.97Tn Worth Of Investment is being targeted by FG From Gas The Federal Government through its developed gas master plan is expecting about N3.97tn ($25bn) worth of investments through gas processing, transmission and downstream utilisation, the Director, Department of Petroleum Resources, Mr. George Osahon, has said. Osahon said the plan was aimed at strengthening the gas market towards meeting the governments aspirations of achieving the goals of Vision 2020, adding that such investments would transform the economy. He said, Opportunities for investment are available in pipeline construction system, gas gathering and processing. Also, Nigeria has the worlds 7th largest reserves of gas with a further potential for a further 600 trillion cubic feet in undiscovered reserve.
Privatisation
of
The Bureau of Public Enterprises (BPE) has said that the bureau would privatise the four refineries in the country in 2014 as part of the ongoing oil sector reforms. BPE also urged Nigerians not to be apprehensive about the refineries sale because only capable and visionary investors would be considered in the privatisation process. Unfortunately there appears now to be confusion as the President in a Statement made in January 2014, through The Special Adviser to the President on Media and Publicity, Dr. Reuben Abati in January The Presidency on Thursday said the Federal Government had no plan to sell any of the nations refineries contrary to the news making the rounds about the imminent sale of the facilities.
Chevron Increases Total Global Fund Investment To $60M Chevron Nigeria Limited, CNL disclosed that Chevron Corporation has committed an additional $5 million over two years to the Global Fund to Fight AIDS, Tuberculosis and Malaria to target the prevention of mother-to-child transmission of HIV, PMTCT, in Nigeria. This commitment raises Chevrons 8-year investment in the Global Fund to $60 million, making the company the single largest private sector partner to the organization.
The Executive Secretary, Nigerian Content Development and Monitoring Board, Mr. Ernest Nwapa has stated that the implementation of the Local Content Act by the Federal Government has attracted $5bn worth of investments into the economy and created about 38,000 jobs since 2009.
According to him, the implementation of the Act has ensured that most industry services are now executed in-country and not taken abroad as was the case in the first 50 years of oil exploration and production in Nigeria.
Nigerias Gas Industry Investment To Hit $25Bn The Gas Master Plan facilitated by the federal government which aims at harnessing the countrys huge gas resources and reduce significantly massive gas flare by oil exploration and production companies would attract monumental investment flow which would boost the economy by $25 Bn. It was further stated that the policy is designed to assure gas availability for the growing gas demands driven by rising gas prices, power sector reforms and investor confidence in Nigeria.
Oando To Complete $1.68Bn ConocoPhillips Acquisition by Jan 31 Oando Energy Resources, the Upstream subsidiary of Oando Plc listed on the Toronto Stock Exchange, will complete the $1.68bn acquisition of the Nigerian assets of ConocoPhillips by January 31, 2014. This acquisition, would be a transformational milestone, making Oando the largest indigenous exploration and production company in Nigeria with 50,000 barrels of oil equivalent per day in production, 236 million in 2P reserves and over 500 million in contingent resources.
Lekoil To Raise $100M Through Share Placement Lekoil, an oil and gas exploration and development company with a focus on Nigeria and West Africa, has entered into a placing agreement with Mirabaud Securities and has conditionally raised, in aggregate, gross proceeds of approximately $100 million through the placing of, in aggregate, 113,282,000 new ordinary shares at a placing price of 55 pence per ordinary share with certain existing and new institutional and other investors via an accelerated book-build. The net proceeds of the placing are estimated to be $97 million and will be used to fund the completion of drilling and testing of the Ogo-1 and Ogo-1 ST, the future development of OML 113 offshore Nigeria, which contains the Aje Field. The funds will also go toward general corporate and working capital purposes, including the full repayment of the loan facility that the company has entered into with Afren Plc.
Total Downstream Investment In Nigeria Hits N150Bn In 3 Years The management of Total Nigeria Plc have estimated that its downstream investment in Nigeria between 2010 and 2013 is over N150 billion. MD, Total, Alex Vovk also disclosed at the Oil Trade and Logistic (OTL) Africa Downstream 2013 Expo in Lagos maintained that over the last three years, TNP as one of the major in the oil and gas industry in the country, made investment of more than $100 million to sustain its core business of importation, storage and distribution of petroleum products; fuels or specialties products such as lubricants and LPG through retail, industrial and aviation channels of sales; in the downstream sector.
Nigerian (Commercial
playing a major role in upstream. midstream and downstream oil and Gas financing unlike when the funding of Oil and Gas
transactions.
The bank's profit before tax, for the twelve months ending 31 December 2012 was approximately US$542.5 million (NGN:86.2 billion). At that time, the bank maintained a customer base in excess of 8.5 million individuals and businesses.
The bank has strong compliance with financial laws and maintains a strong rating from the Economic and Financial Crimes Commission of Nigeria
The bank also provided $15.15m term loan to finance the acquisition of two vessels to service a five-year charter party contract awarded by chevron Nigeria Limited to Fymax Marine and Oil Services Limited
The bank got an award in 2012 as the Best Oil and Gas Investment Company in 2012 for Africa by London based world finance magazine. Its position has been confirmed as one of the leading financial institutions in Nigeria with a positive bias for funding oil and gas projects.
-Financed the first Nigerian wholly owned jack up barge of over 200ft. -One of the projects financed by the bank is orient petroleum Anambra River Production facility in Aguleri which was launched as the first ever production facility of Oil from an inland basin in Nigeria.
Fidelity Bank Plc began operations in 1988 as Fidelity Union Merchant Bank Limited. By 1990, it had distinguished itself as the fastest growing merchant bank in the country. It converted to a commercial bank in 1999, following the issuance of a commercial banking license by the Central Bank of Nigeria, the national banking regulator. That same year the bank rebranded to Fidelity Bank Plc. In 2011, the bank was ranked the 7th most capitalized bank in Nigeria, the 25th most capitalized bank on the African continent and the 567th most capitalized bank in the world. As of December 2013, Fidelity Bank Plc. was a large financial services provider in Nigeria with total assets estimated at over US$6.318 billion (NGN:1+ trillion), and shareholders' equity in excess of US$1 billion (NGN:158 billion).
Access Bank is one of the leading banks in the country trading in ordinary shares and a three-year convertible bond listed on the Nigerian Stock Exchange and also an over the counter (OTC), Global Depository Receipts (GDR) traded on the London Stock Exchange which it exploits for financial major projects across the major segments of the economy.
The bank is rated as Nigeria's Corporate Bank lender plans to be the world most respected African Bank by 2018 but has set a mid-cycle goal post by 2015 of being a high performing Nigerian diversified banking leader.
Access bank has the capability to finance Oil and Gas projects being one of the Nigerias largest financial services provider with an asset base in excess of N2 trillion ($12.6 billion as at February 2012). The bank stated that it will participate in the financing of oil firms acquiring divested assets from Shell and Chevron using some of the financing of Oil firms acquiring divested assets from Shell and Chevron using some of the proceeds of its $350 million Eurobond sale.
Stanbic IBTC Bank is a leading provider of integrated financial services, pensions and wealth management products and services. It offers all its clients a wide range of personal & commercial banking products through over 180 branches spread across every state in Nigeria and our online banking platforms.
It also offer self-service channels powered by sophisticated technology to bring convenient banking to customers. clients can also get custodial services through Stanbic Nominees Nigeria Limited, our custody arm and non-pension asset custodian, acting in a nominee capacity for clients transactions in securities and other investments.
Stanbic is a key player in financial inclusion and are poised to take banking to the doorsteps of our customers; taking care of the banking needs of different categories of persons and businesses.
Zenith Bank Plc, a leader in financial services with headquarters in Nigeria and subsidiaries in the United Kingdom, Ghana, Sierra Leone, Gambia, and South Africa (Representative Office), offers premium solutions to its teeming customers. It is a bank growing its customers' businesses and wealth in the last 20 years and this has positioned Zenith Bank as the financial institution of choice. The bank business is built on its core principle of working in customers' best interest. Over the years, the Zenith brand has become synonymous with the deployment of state-of-the-art technologies in banking. Service standards is delivered in its business environment and the bank is in the business to always deliver exceptional services to all its expanding clientele. The bank has successfully been involved in various oil and gas financing transactions
UBA is a large financial services provider in Nigeria with subsidiaries in 20 subSaharan countries, with representative offices in France, the United Kingdom and the United States. It offers universal banking services to more than 7 million customers across 750 branches. Formed by the merger of the commercially focused UBA and the retail focused Standard Trust Bank in 2005, the Bank purports to have a clear ambition to be the dominant and leading financial services provider in Africa.[Listed on the Nigerian Stock Exchange in 1970, UBA claims to be rapidly evolving into a pan-African full service financial institution. The Group adopted the holding company model in July 2011.As of December 2011, the valuation of UBA Group's total assets was approximately US$12.3 billion (NGN:1.94 trillion), with shareholders' equity of about US$1.07 billion (NGN:170 billion).
Standard Chartered re-entered Nigeria in 1999 and opened to customers on 15 September 1999 as a wholly owned subsidiary of Standard Chartered Bank Plc, headquartered in United Kingdom. It now has thirty six branches located in major cities across the country offering a wide range of products and services in both consumer and wholesale banking. It employs over 700 employees and sees Nigeria as a growth centre. The organic growth strategy of Standard Chartered Bank Nigeria (SCBN) is delivering substantial growth in profitability. Despite the challenges in the external environment, SCBN has consistently achieved stunning results due to best-in-class cost management and strong asset book management. SCBN is delivering on 'turbocharge' expansion strategies for both Consumer Bank (CB) and Wholesale Bank (WB) businesses over the next three to five years.
Heritage Banking is the latest entrant to the banking industry in Nigeria. The bank started operations fully on March 4, 2013 and presently operate from over eight experience centres. The bank intend to deal in the financing of downstream activities such as importation and local trading of petroleum products. Supported by world-class technology and leveraging on its skills and expertise, the bank intend to create niche for itself in the upstream, midstream and Oil-Services sub-sector of the industry.
The mainstay of its participation in the industry would include the financing of field development activities, construction of crude and gas pipelines, financing the acquisitions of vessels and barges for the IOCs and other indigenous companies . The bank also intend to assist in the acquisition of land and swamp rigs on behalf of its customers , finance EPC contracts and other contracts in the Oil Servicing space.
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Commencement
3
Documentation
Marketing
Selection of Investors/Lenders
Negotiation
Transaction Close
Phases
Commencement
Documentation
Appointment of
by Client
Lenders teaser for Debt Raise Information Memorandum
Financial Model Valuation Report for Equity Raise Calculate Coverage Ratios for Debt Financing
Activities
Marketing
What is the project? Where is it located? Why is the project viable? When is the project scheduled and when are funds needed? Where is the fund utilised?6 How much funding is needed, how much has been invested How much is available for the funding process?
Phases
Procedure
Conduct informal market sounding with foreign investors to gauge their appetite Executive summary should be sent to the foreign investor and at this point the investment banker may not disclose Client information Execution of Non Disclosure agreement by Whitehall Capital and Foreign Investors Forward Investors teaser or Lenders teasers as appropriate Receive non binding letter of interest from Foreign Investors showing their committed amount Forward Information Memorandum to the foreign investors Open Physical or Virtual data room for foreign investors to access documents from the client
Activities
SELECTION OF INVESTORS/LENDERS
Phases Phases
Activities
Agree final list of potential investors/lenders with Client Receive final commitment letter from investors/lender Due Diligence is carried out by foreign investor. Generally, the due diligence is focused on; Financial Business Technological
NEGOTIATION
Phases
Activities
Coordinate negotiation with foreign investors Transfer of proceeds to dedicated account by the foreign Investors Execution of Facility agreement for lenders and Share Purchase Agreement for equity investment
TRANSACTION CLOSE
Phases
Transaction close
Activities
Transfer of proceeds to Client Transaction Close Post transaction report to client highlighting key hurdles during execution phase and the mitigant used.
WHCPT is a Financial and Project advisory services company involved in assisting companies fund mobilization efforts. It is founded by experienced principals with over 70 years work experience in finance, risk management and project development both locally and across the globe. We have evolved an array of advisory services in almost all sectors of the economy by foreseeing the changing needs of clients in a rapidly opening economy, over the years . We are known for professionalism and business ethics in providing a full range of Investment, Advisory and Financial Services under one umbrella.
Experienced Team
WHCPT people are the building blocks of its success. Our entrenched brand and ideals enable us attract talent from diverse backgrounds including bilingual (French) capabilities. We believe in intellectual capital which is our driving force in creating economic value WHCPT has a dedicated team of seasoned professionals with cumulative local and international experience of over 70 years and industry insight. WHCPT takes pride in its diligence and attention to detail in executing all mandates.
Global Reach
WHCPT aims to provide Credible, Professional, Customer Focused and Cutting Edge world-class advisory services. .
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OUR UNIQUENESS
Our Uniqueness
Deliver an integrated approach that draws on the experience and competence of the firm. Offer complete end-to-end finance solutions to clients at all levels. Deliver best-in-class deal structuring and implementation capabilities Deliver value creation for our clients. Develop an optimal execution road map that provides insights. Think innovatively, practically. but act and
MultiDisciplinary Approach
Customer Focused
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WHY WHCPT
WHCPT Experience
WHCPT has acquired significant experience in financial and project advisory, Risk and Consulting, Real Estate, Equipment Procurement and Financing and other value added services In the local and international markets
Our team consists of first class, well trained finance/Accounting, Risk Management and Oil and Gas professionals, with global experience who have undertaken big ticket deals.
Our Strength
We have an exceptional transaction team with wide range of experience in various sectors Presence in Africa with access to local knowledge
Our Commitment
Our services are designed keeping in view the specific requirements of our clients. WHCPT is committed to bringing into the equation our extensive( team and corporate) experience in executing similar mandates
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KEY CONTACTS
INFORMATION
PLEASE
CONTACT
THE
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