FG To Adopt New Approach To Resolve Niger Delta Crisis

Kachikwu, Niger DeltaA fresh approach to resolve the Niger Delta crisis is being planned by the federal government going by the statement of the Minister of State for Petroleum, Dr. Ibe Kachikwu.

The Minister told journalists on the sideline of the just concluded roadshow in China that the government is planning a three-stage approach to ensure permanent solution to militancy in the Niger Delta.

Dr Kachikwu said that the new approach will include militants, traditional rulers and a permanent Niger Delta Peace Committee, which is expected to bring about long term solution to agitations in the region.

Besides, he says government is planning the use of modern technology to lay oil pipelines so that vandals cannot have easy access to them in the region.

The Minister was in China in June 2016 to seek investment for the repair and expansion of infrastructure in the nation’s oil industry.

Over 50 billion dollars memorandum of understanding for investment in the oil industry was signed. One of the agreements is with China’s leading oil company, Sinopec.

The Minister and his officials also signed an agreement with China’s largest securities and assets management company, Cinda Group.

The company specializes in providing financial lifelines for big companies in the country.

The roadshow for investment in the oil sector is also scheduled for India and gulf countries.

Total sells $2.5 billion Nigerian oil field to China’s Sinopec

Total is selling a 20 percent stake in a Nigerian offshore oil field to China’s Sinopec in a $2.5 billion deal which will help the French oil group fund its ambitious exploration plans.

Total said on Monday it had signed a deal to sell the stake in the OML 138 block, which currently produces 130,000 barrels per day of oil equivalent and contains the Usan field, which started production in February.

The French group said in September it planned to sell assets worth between $15 billion and $20 billion in the period up to 2014 as part of a bolder approach to managing its business, which has seen it buy and sell assets more frequently.

Total, which is also selling its French gas network business, is ramping up spending on exploration to take advantage of the historically high price of oil, which averaged $113.6 a barrel in the first half of 2012.

Total’s chief executive, Christophe de Margerie, said earlier this month the group did not intend to disengage from Nigeria altogether.

“It doesn’t mean we are scared and intend to start some kind of walking out of Nigeria … Total is happy to develop its projects in Nigeria,” he told reporters at an energy conference in Abu Dhabi.

Chinese companies have been among the most aggressive in targeting assets around the globe to help feed oil and raw material demand in the world’s second-biggest economy.

Sinopec, Asia’s largest refiner, has also snapped up energy assets in Britain and the United States recently to boost foreign earnings, as a slowdown in China hit profits.

Other shareholders in the OML 138 oil block, located 100 kilometres off the coast of Nigeria, are Exxon and Chevron, with 30 percent each, as well as Nexen , which owns 20 percent.

Total’s shares were up 2.5 percent by 1500 GMT, outperforming a 2.1 percent rise in the European oil and gas sector