Indian Refiner ignore Nigeria's oil, focus on Malaysia

A number of Indian state-owned refiners have been actively picking up Malaysian oil cargoes for loading in July and August amid growing uncertainty over the exports of Nigeria’s crude grades, according to regional sweet crude traders.

Bharat Petroleum Corporation Limited on Monday issued a spot tender to purchase several Malaysian light sweet crude grades, raising expectations that more Indian end-users could switch their focus to Southeast Asian supplies, Platts reported.

BPCL was said to be seeking up to one million barrels of various Southeast Asian light sweet crudes, including Malaysia’s Miri Light, Labuan, Tapis, Kikeh, Kimanis and Bintulu as well as Brunei’s Seria Light and Champion crudes for loading over September 11-20, according to an official tender notice seen by S&P Global Platts.

According to the latest shipping fixtures seen by Platts, India Oil Corporation fixed Olympic Sky and Seafalcon to move a total of about 1.2 million barrels of Malaysian Labuan crude for loading in July, while BPCL fixed Nordic Jupiter, Mare Siculum, Shah Deniz and Pavino Spirit to move around one million barrels each of light sweet Kikeh and Kimanis crudes for loading in July.

The tender closes July 22, with validity until July 26. The latest spot tender raised a few eyebrows in the Asia-Pacific sweet crude market, as the Indian state-owned company does not regularly seek Malaysian and Bruneian crude grades in the spot market.

“BPCL, like many other Indian state-run companies, prefers to take Nigerian light sweet crudes like Qua Iboe and Bonny Light. Those are the number one choices,” the source said, adding that “when production [of light sweet Nigerian grades is] in doubt, the next best option would be Malaysian (grades).”However, BPCL’s latest move was seen as necessary, as the procurement of any Nigerian crude grades would be a big risk amid ongoing production hiccups caused by militant attacks in the Niger Delta, a company source said Tuesday.

Late last week, Mobil Producing Nigeria, a subsidiary of ExxonMobil, said Nigerian crude grade, Qua Iboe, had been placed under force majeure and exports were halted, while Italian company Eni confirmed earlier this month that 4,000 barrels per day of oil equivalent of equity production had been shut in following an attack claimed by Nigerian militants in the Niger Delta.

Nigerian militant group, the Niger Delta Avengers, said Friday that it would not permit foreign oil companies operating in the Niger Delta region to carry out repairs on bombed oil pipelines, threatening more devastating attacks on any repaired facility.

“There is no guarantee the Nigerian crudes will load and set sail safely. It’s very risky,” said a Singapore-based sweet crude trader.

The Independent Corrupt Practices and other Related Offences Commission (ICPC) has signed a Memorandum of Understanding (MOU) with the National Association of Nigerian Students (NANS) to check corrupt practices in higher institutions.

A statement signed by Mrs Rasheedat Okoduwa, the commission`s spokesperson, on Thursday in Abuja, listed the corrupt practices to include indiscipline, examination malpractice, extortion and sexual harassment, among others.

Okoduwa said that the MOU was aimed at getting students involved in the anti-corruption campaign and to educate them on how to report corruption cases to ICPC for prosecution.

She said that the MOU would also encourage students and teachers to engage ICPC through its training arm, the Anti-Corruption Academy of Nigeria (ACAN) in research on corruption and related matters.

The commission’s Secretary, Mr. Elvis Oglafa, was quoted in the statement as saying that the commission was “looking at a bigger picture where institutions of higher learning can achieve 100 per cent discipline and zero tolerance for corruption’’.

“But with the signing of the MOU, a new door has been opened for the reporting of such vices.’’Oglafa, the statement added, stated that over the years, NANS had not provided any platform which could enable its members to report corrupt practices within the educational system.

He expressed optimism that since Nigerian students had demonstrated willingness to confront corruption, a new vista which had just been set, would cleanse the system of the debris of corruption in institutions.

“NANS President, Mr Tijani Usman, commended ICPC for the initiative and affirmed that Nigerian students were willing to fight corruption because they were always at the receiving end of its adverse effects.

“The MOU was signed on behalf of ICPC by the Secretary to the Commission and Usman, the head of the students’ delegation, on behalf of Nigerian students,’’ Okoduwa said in the statement.

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Airlines’ Tariffs Have Been Liberalised, Not Increased, Says NCAA

The Nigerian Civil Aviation Authority (NCAA) says all airlines’ tariffs for services rendered, which include fares, rates, add-on charges or terms and condition of service, have been fully liberalised.

This was disclosed in a statement by the General Manager, Public Relations of NCAA, Mr Sam Adurogboye, which was made available to the press in Lagos on Sunday.

The statement explained that this was to clarify reports in some sections of the media that the NCAA had authorised airlines to increase their fares.

According to the statement, air fares and sundry charges have been statutorily deregulated and subjected to market forces.

“However, all air carriers or their agents shall file, with the authority, a tariff for that service showing all rates, fares and add-on charges.

“These include the terms and conditions of free and reduced rate transportation for that service, as specified in Part 18.14.1.1 of the Nigerian Civil Aviation Regulations (Nig.CARs).

“They shall obtain approval from the authority to introduce and or increase add-on charges or surcharges such as fuel, internet booking, insurance, security and similar surcharges, prior to implementation,” it said.

The statement said the section also requires all tariffs to be filed at least seven days before the rates come into effect, except in the case of matching an existing rate for which no prior notification was required.

The statement also stated that prior to the approval, all fares filed with the authority are subjected to Breakeven Analysis and this continues intermittently.

“This analysis is to curb anti-competitive pricing among airlines and to ensure that fares are not too low as to impact on safety arising from inability to carry out prerequisite maintenance on their aircraft.

“On the other hand, NCAA will similarly intervene if the fares are too high to avoid overpricing that will deny the teeming passengers access to air transportation,” it said.

According to the statement, the NCAA under Part 18.14.1.4, may sanction an airline for failing to apply the fares, rates, charges or terms and conditions of carriage set out in the tariff that applies to that service.

It said the airline would be directed to pay compensation for any expense incurred by a person adversely affected by its failure to apply the fares, rates, charges or terms and conditions set out in the tariff.

NCAA advised all airline operators and stakeholders to discountenance the reports and continue to operate in an atmosphere of liberalisation and level playing field the Federal Government has put in place.

Source - NTA