Page 12 - DMEA Week 13 2020

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Authorities rejects NLNG’s request for exemption from lockdown
NIGERIA
Nigeria’s Rivers state has rejected four gas companies’ request for a lockdown exemption.
THE government of Nigeria’s Rivers State has rejected a request from Nigeria LNG (NLNG) and several other companies involved in the pro- duction, processing and distribution of natural gas for an exemption from the lockdown regime imposed last week.
The lockdown drew objections from three Nigeriangascompanies–NLNG,NigerianGas Co. (NGC) and Oilserv – and Total E&P, a sub- sidiary of France’s Total. These four firms joined with a local beverage maker, International Brew- eries, to send a special request to Nyesom Wike, the state’s governor, seeking a waiver.
In a joint letter, the companies explained that their operations necessarily involved travel into and out of the state. NLNG and the other gas operators noted that they were involved in distributing gas around the country, and Inter- national Breweries pointed out that its beverage deliveries were time-bound.
Wike responded to their request in the neg- ative, saying that these companies’ business interests would have to take a back seat to pub- lic health considerations. “Government cannot grant their requests now because the protection of human life is more important than any other thing, and we shall do everything necessary to
fulfil our obligation in this direction,” he wrote. Later, the governor qualified his response somewhat, saying that his administration would be willing to reconsider the manner at some point in the future. “[We] shall review our restrictions concerning [these five companies’] activities when we are fully convinced that it will be reasonable to doso,”heremarked.“Letmereiteratethatwehave taken these painful decisions because we cannot
afford to lose any life in this state.”
Nyesom Wike ordered a complete closure of
Rivers’ borders, as well as a complete shutdown of all local markets, on March 25. He took this step after the Nigerian Centre for Disease Con- trol (NCDC) identified the first case in the state, saying it was a necessary to curb the coronavirus (COVID-19) outbreak.
The coronavirus outbreak has hit Nigeria’s economy hard, as it has reduced demand for crude oil, the country’s main export and primary source of revenue. In turn, the decline in demand has been a blow for NLNG. In mid-March, Mele Kyari, the group managing director of Nigerian National Petroleum Corp. (NNPC), said that at least 12 cargoes of LNG from the four-member consortium had been stranded and could not find buyers. ™
FUEL
Total sells West African fuel assets
W AFRICA
France’s Total has arranged to sell its petroleum product marketing operations and assets in Liberia and Sierra Leone
to Conex Oil & Gas Holdings, a Liberian- owned company.
FRANCE’S Total has arranged to sell its petro- leum product marketing operations and assets in Liberia and Sierra Leone to Conex Oil & Gas Holdings, a Liberian-owned company.
Conex revealed last week that the French major had accepted its offer for Total Liberia and Total Sierra Leone. The parties have been in negotiations for about a year, since the Liberian holding company first made an offer.
The value of the deal has not yet been disclosed. Conex said in a statement, though, that it hoped to complete the transaction in about six months.
The company went on to say that it intended to continue operating the service stations it had acquired under the Total brand name for two years. Additionally, it said it would retain the Total subsidiaries’ management and staff and would use the same industrial and wholesale channels to secure its fuel supplies.
The agreement with Total will allow Conex to expand its business and market share and cre- ate new jobs in both Liberia and Sierra Leone, the statement said. “This transaction represents a unique opportunity for Conex to become a
market leader in the fuel marketing business in West Africa with specific emphasis on the Mano River Union, [as] Total Liberia and Total Sierra Leone [have] leading positions as vendors of fuel in the aviation industry,” it noted.
Cherif Abdallah, the chairman and CEO of Conex and its subsidiary Conex Petroleum Group, said the deal was in line with efforts to promote entrepreneurship in Liberia. “Our hope is that this achievement will encourage and motivate other Liberians to move in and begin the job of developing our private sector,” he was quoted as saying in the company statement. “It is time for local actors to actively participate in their economies.”
Conex Oil & Gas Holdings is headquartered in Liberia and also operates in Ghana, Guinea, Nigeria and Sierra Leone. Additionally, it has established offices in the United Arab Emir- ates and Switzerland. The holding company is fully owned by Liberian investors and has pro- vided capital resources, management teams and other forms of support to the companies it has acquired. ™
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w w w . N E W S B A S E . c o m Week 13 02•April•2020