Energy News  
ENERGY TECH
Big Oil sells up some stakes in Nigeria

disclaimer: image is for illustration purposes only
by Staff Writers
Port Harcourt, Nigeria (UPI) Oct 29, 2010
Three oil majors have sold their stakes in Nigeria's southern oil zone to a Nigerian operator, a deal that many in the industry attribute to concerns about mounting political instability in Africa's most populous nation.

The sale, for an undisclosed sum, reflected growing unease among the foreign oil companies which have dominated Nigerian production for the last few decades that the country faces multiple crises that could plunge it into anarchy.

The state-owned Nigerian National Petroleum Corp. has been seeking to renegotiate its long-standing production-sharing contracts with the foreign companies, which include Chevron of the United States, the Anglo-Dutch Shell Co., Total of France, Eni and Agip of Italy and BP, to secure a greater share of oil revenues.

The companies have resisted this, with Chinese oil companies, awash with hard currency, bidding to take over their licenses.

But the announcement Wednesday by First Hydrocarbon Nigeria Ltd., a Nigerian consortium, that it had acquired the interests of Shell, Total and Agip in onshore block OML 26 in the delta marked the first major move by the foreign firms to dispose of their Nigerian holdings.

Industry sources said the increasingly disenchanted foreign firms fear the worst in the months ahead.

This could signal a substantial reduction in foreign investment, with oil drilling already decreasing. None of the foreign firms bothered to participate in the last oil bidding round in 2007.

The oilmen's most immediate problem is an expected resumption of an insurgency by impoverished and long-neglected tribes in the Niger Delta, Nigeria's principal oil-producing region.

The insurgents claim the central government has reneged on an amnesty introduced in 2009 that halted a five-year campaign of violence against the oil industry, Nigeria's economic mainstay.

The government announcement Thursday that a large shipment of illegal arms, hidden in 13 shipping containers, had been found at Lagos, the country's busiest port, deepened the alarm.

The arms included 107mm rockets, similar to those used by Arab militants to bombard Israel. It wasn't immediately clear whether the weapons were destined for armed groups in Nigeria or elsewhere. If they were intended for use in Nigeria, that would mark a sharp increase in insurgent firepower and a potentially deadly escalation in the campaign against the oil industry.

Before the amnesty declared by President Umaru Yar'Adua, who died in May after a lengthy illness, took effect, insurgent attacks, sabotage and kidnappings had slashed Nigeria's oil output by almost 1 million barrels a day, one-third of national production.

These attacks and large-scale oil theft cost the state an estimated $1 billion a month, according to government officials at that time.

The main insurgent group, the Movement for the Emancipation of the Niger Delta, has threatened to resume and escalate its operations against the oil companies. In a sign of MEND's growing frustration, 10 people were killed in a double car bombing Oct. 1 in the administrative capital, Abuja, as Nigeria celebrated its 50th anniversary of its independence from Britain.

On Friday, the Italian oil company Eni said one of its oil pipelines was blown up, possibly by MEND, cutting production from its field by 4,000 barrels a day.

MEND claimed responsibility for the Abuja bombings, which marked a sharp escalation in the insurgency.

But northern political opponents of President Goodluck Jonathan, a southerner who succeeded Yar'Adua, claimed he used the attacks to launch a witch hunt against his rivals in the run-up to the January election.

This exposed the political, ethnic and religious fault lines in the country as it braces for what is shaping up to be the most bitterly contested poll since the military relinquished power in 1999.

Yar'Adua's illness and death triggered a major political crisis dominated largely by deep-rooted rivalry between the political barons of the north and south to succeed Yar'Adua.

These crises have been worsened by tit-for-tat slaughters by Christians and Muslims in Nigeria's troubled central belt, largely over land disputes. Nigeria's population of 150 million is divided more or less equally between Muslims who dominate the north and Christians in the south.

Thousands of people have been killed, mostly in the north, in recent years and there's no sign of a let-up despite the large-scale deployment of the military.



Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Powering The World in the 21st Century at Energy-Daily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


ENERGY TECH
Gulf disaster: Halliburton admits it skipped key cement test
Washington (AFP) Oct 29, 2010
Halliburton admitted skipping a key cement test before the catastrophic Gulf of Mexico blowout, as the oil services behemoth found itself Friday day in the crosshairs of a US presidential probe. But the company, in a statement late Thursday, said responsibility for the explosion that killed 11 workers and set off the biggest oil spill in history lay firmly with BP for not testing the integri ... read more







ENERGY TECH
Medvedev eyes energy, regional cooperation on Hanoi visit

Traveling By Car Worse Than By Plane For Climate

Half The Productivity, Twice The Carbon

'Fearful' Frenchwoman replaced as renewables agency chief

ENERGY TECH
China media labels Japan foreign minister an 'extremist'

Big Oil sells up some stakes in Nigeria

China dissatisfied with Clinton's remarks on Diaoyus

China warms to code of conduct on South China Sea dispute

ENERGY TECH
Offshore Wind A Mixed Bag

Wind power to grow massively until 2030

China's wind power capacity to increase five-fold by 2020

Google in major bid for Eastern US wind power

ENERGY TECH
Middle Class Free Electricity Scheme Over

South Africa woos investors for world's biggest solar plant

Solar power too much of a good thing?

Innotech Solar builds new plant in Germany

ENERGY TECH
Russia hails Asia ties as it eyes nuclear projects

German MPs green light nuclear revival

Russia to sign deal to build Vietnam's first nuclear plant

Bolivia plans nuclear plant with Iranian help

ENERGY TECH
US Navy To Conduct Alternative Fuels Demo With Riverine Command Boat

Boeing Statement Regarding USDA-FAA Partnership On Aviation Biofuels

Carolina pioneering human waste-to-energy

Port Gibson Biomass Plans Taking Shape

ENERGY TECH
China says manned space station possible around 2020

China Kicks Off Manned Space Station Program

NASA chief says pleased with 'comprehensive' China visit

The International Future In Space

ENERGY TECH
Global warming 'unquestionably' linked to humans: France

Tiny Pacific island in world-first personal pollution scheme

Climate Tipping Points For Populations, Not Just Species

Climate action on firing line in US elections


The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement