OPEC TO LEGALISE OIL CUT WITH NON-OPEC – SCRIBE
source: http://www.eyesoflagos.com/2017/06/opec-to-legalise-oil-cut-with-non-opec.html

Following the success of the second joint Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC meetings, the two organisation are presently looking into legalising their new found relationship, says OPEC Secretary-General, Mr Mohammed Barkindo.
Barkindo said this in an interview to highlight the successes of the second OPEC and non-OPEC joint meeting in May, which would lead to a further global oil production cut of 1.8 million barrels per day for the next nine months, beginning July, 2017.
Barkindo is a former Group Managing Director of the Nigeria National Petroleum Corporation (NNPC).
He said that to achieve global crude oil price stability, it was important that the current cooperation between both groups is deepened and structured in the interest of both oil producing and consuming countries.
“This is one of the issues that we are putting top on our priority. We have a vision of establishing a platform for stability of oil prices on a sustainable basis.
“OPEC as an organization controls nothing more than 40 per cent of the oil market.
“The issue of stability on a sustainable basis is probably beyond the capacity of an organisation that controls only 40 per cent and that is what led to the Algeirs agreement last year and later to the historic first joint meeting of OPEC and non-OPEC members.
“However in terms of the final structure of this relationship, it is very difficult to say because it is a work in progress.
“The OPEC secretariat has committees with the non-OPEC countries; such as the Joint Technical Committee, Joint Ministerial Working Committee and Economic Commission Board, which I chair.
“These bodies are working towards a new framework that will be considered by all the 24 countries before deciding on what form and shape the relationship will look like in the years to come,’’ he said.
Reacting to the market speculation on the need to deepen oil production cut rather than extending the duration for the cut, He said the target was to balance the market and achieve an equilibrium price.
“There were speculations in the market that we were probably going to deepen the cut adjustments beyond the 1.8 million barrels per day.
“I think the market anticipated that but we do not react to market conditions, we looked at the fundamentals and we are very satisfied with the level of fundamentals.
“Supply is coming down and conformity level is 100 per cent for both OPEC and non-OPEC members.
“Demand is very robust and going forward in the last half of this year, our projections shows that there will be a demand increase of about 2 million barrels a day.
“So all we needed to do instead of deepening the cut by increasing the volume beyond 1.8 million bpd was to extend the duration of the decision for 9 months,’’ he said.
On the need to convince Shale oil producers to recognise the call to cut production, to sustain prices, Barkindo said the OPEC secretariat had opened a communication channel with the hope of getting them on board.
He recalled that the Shale producers in the United States played an important role in addressing deficit in supplies to the oil market when Libya and Iran could not meet demand due to domestic challenges.
“For the first time in history, OPEC reached out to the non-conventional Shale oil players.
“I led the team to meet with them in Houston to first of all break the ice and try to understand ourselves. So we have succeeded in opening a discussion line with them.
“At the meeting, we compared notes, we came to the conclusion that both conventional and non-conventional players, both OPEC and non-OPEC have a common responsibility of maintaining stability in the market.
“I think this is a significant shift from the almost open hostility that existed in the past,’’ he said.
On the passage of Nigeria’s Petroleum Industry Bill at the Senate, Barkindo said it will lead to improved investment in the oil industry thereby adding to the security of future supplies and demand across the supply chain.
“The issue of investment has been one of our key concerns in the industry. An estimated 450 to 500 billion dollars of investments was either deferred or out rightly cancelled from 2014 to 2016.
“For Nigeria, the best is yet to come. We have huge resources and what we need is a stable regulatory and fiscal framework that will enable investors to continue to invest, to expand their capacity and meet growing demand,’’.

I have 50,000MT AGO Racket in Lagos Water for BOARD & LOAD. Any ready and interested buyer with full vessel details should Pchat me.. The price is N115/5



LPFO FORCADOS BLEND ALLOCATION

ALLOCATION LIFTING REFERENCES:
REF. CPI/CO/28/VOL.11/51
BULK APPROVED MPR REF Nº:DPR/DS/CTO/2018/VOL.89/093
QUANTITY OFF TAKE: 900,000,000,000,000 METRIC TONS
REG./LIFTING NO: EXP.T/128/VOL.41/2322. (EACH-P.A 900TRILION METRIC TONS)
REG./LIFTING NO: EXP.T/128/VOL.41/2349. (EACH-P.A 900TRILION METRIC TONS)

ARTICLE 7: PRICE:

7.1 GROSS: #36.00 LESS N4:00K QUOTED NWE PLATT
NET TO THE SELLER: N32.00K PERLITRE
TOTAL COMMISSIONS:N4:00K
ARTICLE 23: PROCEDURE:
Procedure for the Transaction

Seller present SPA contract to Buyer to fill in where necessary, agree and sign, the signed /sealed returned contract is considered binding on both party inclusive of the indemnity clause contain therein and a corporate letter of assurance guarantee to pay all intermediaries their commission up-front as soon as the soft copy of the allocation is released, confirmed/verified and block fund unblocked.

The signed/sealed SPA by both parties is expected to be lodged in each parties bank, the Seller issued allocation PFI details is confirmed at the NNPC Tower Abuja for authenticity to enable buyer/buyer representative to block funds in the Seller’s account for the quantity signed for, to enable re-assignment in the name of the buying company or principal company/off-takers.

Buyer and his representative are invited to NNPC Tower for confirmation and verification of PFI allocation details, Buyer is expected to come along with his valid financial and up to date proof of fund and Bank Capability document.

Upon successful confirmation/verification of allocation PFI details, Buyer is obliged to initiate and establish communication with his financial institution and block fund according to the signed/sealed SPA to the seller’s account contained in the SPA to enable re-assignment of allocation in the Buyer’s name or principal/off-taker.

Upon confirmation of blocked funds by Buyer’s financial institution, re-assignment of allocation is conducted in conjunction with the Seller by NNPC for the total quantity of allocation signed and sealed for within stipulated time according to NNPC policy/guidelines for re-assignment.

After the re-assignment, softcopy of the re-assigned allocation in the name of the Buyer is released to the Buyer/Buyer’s bank for confirmation/verification.

Upon successful confirmation/verification of allocation by Buyer/Buyer’s bank and representatives, Buyer is to unblock funds and effect payment by swift via MT103 or any other approved financial instrument accepted by NNPC and the industry to all Seller/Buyer and intermediary facilitators/accounts according to Payment schedule that will be presented from the Seller to the Buyer.

Upon confirmation of payment to all concerned accounts, allocation hard copy document and other related documents are released to the Buyer/Buyer’s approved representative laycan dates and roll over are issued too through the Seller to the Buyer for preparation of programming of vessels and lifting.


Phone:+234(0)9033826160
ketkelvin806@yahoo.com