…As Court orders Sen. Abaribe, others to produce Kanu or lose N300m bail bonds***
There are indications that Nigeria’s crude oil biggest buyer, India has started looking up to the United States for the product. According to Platts, “Indian Oil Corporation (IOC) issued a tender for one Suezmax or VLCC cargo of US crude loading in December, along with one Suezmax or VLCC of West African crude.
“This followed news earlier in the week that the state-run company expected a second US crude cargo containing around 2.2 million barrels to arrive on the west coast by the end of October. Oil “International Oil Companies, IOCs, the country’s flagship refiner, has contracted 3.8 million barrels of US crude since July. Indian refiners have purchased heavier MARS crude from the US, as well as light sweet barrels.
“Other state-run refiners like Bharat Petroleum Corp. Limited (BPCL) and Hindustan Petroleum Corp. Limited (HPCL), which are also key buyers of Nigerian crude, have also recently purchased US oil.’’ An unnamed Nigerian crude trader stated, “US grades are a very good option for anyone searching for light grades considering the Brent/WTI spread…if you have a grade that is marked on Dated Brent then it will likely see dropping differentials.”
The Nigerian Bureau of Statistic, NBS, had stated that: “The fiscal statistics on government revenue and expenditure for July 2017 reflected that total gross oil revenue was put at N362.43bn as against N254.02bn in June 2017.
“Crude oil sales accounted for the larger chunk of the oil revenue as N188.15bn was generated from crude oil sales while gas sales generated N29.69bn. The least oil revenue came from rent and gas flared penalty with N0.044bn and N0.184bn generated respectively.” Also, South Korea’s largest refiner, SK Innovation, had made its first purchase of U.S. crude, placed order for over one million barrels.
Nigeria produces light sweet crude, a similar grade with the U.S. WTI that refiners in Asia are now rushing because of favourable price and shorter shipping distance.
The nation has one of the world’s highest production cost per barrel of crude oil, thus making its crude’s price uncompetitive especially in low price regime. According to trading sources, “The competition that Nigerian crude oil cargoes has faced from US crude oil grades in Northwest Europe over the past two years has begun to expand into other regions.”
In an interview with S&P Global Platts, the General Manager of Nigerian National Petroleum Corporation, NNPC, Mele Kyari, had said: “In the short term we are not worried about rising US crude exports, because we actually sell into the US today so there is a reverse flow of trade, going from Nigeria to the US.
“So far this year, 17 percent of Nigerian crude exports have been to the US, which was a sharp rise from few years ago. Indeed, since the US started exporting crude in 2015, Nigeria’s exports to the US have increased. By comparison in 2014, only 3.1 percent of Nigerian exports went to the US.”
In the meantime, Justice Binta Nyako of the Federal High Court, Abuja, has fixed Nov.20 for Sen. Enyinnaya Abaribe and two other sureties to produce Indigenous People of Biafra (IPOB) leader, Nnamdi Kanu for trial.
The judge gave the order on Tuesday when Mr Ifeanyi Ejiofor, counsel to Kanu , told the court he could not explain the where-about of his client.
The News Agency of Nigeria (NAN) recalls that the other sureties are Immanuel Madu and Torchokwu Uchendu.
NAN reports that Kanu, whose bail was perfected by the voluntary endorsement of the three sureties failed to appear in court to stand his trial.
Nyako said the sureties’ failure to produce Kanu would compel the court to invoke the forfeiture of their N100 million bail bond each.
“The trial of Kanu and his co-defendants was fixed for Oct.17, but reports from both the prosecuting and defendant’s counsel show that Kanu is absent.
“The sureties that helped to perfect his bail conditions are solely accountable for his presence for trial. These sureties are therefore, given time to produce him for trial.
“In the event that they are unable to produce him, the court shall go on to invoke the remaining options left to it,’’ she said.
Earlier, Mr Mohammed Labaran, the prosecuting counsel had moved an application praying the court to grant a bench warrant for Kanu’s arrest.
He said the defendant had flouted all the bail conditions spelt out for him by the court.
The counsel to Kanu, Ejiofor objected to such application, adding that he had filed a suit against the Chief of Army Staff on the where about of Kanu.
Ejiofor had claimed that the military’s invasion of his client’s home on July 11 led to his disappearance, adding that the military was in the best position to tell the where about of Kanu.
Similarly, Mr Ogechi Ogbonna, counsel to Abaribe moved a motion seeking court’s approval for the withdrawal of his client’s consent as Kanu’s surety.
Ogbonna said his client was not in a position to tell the where about of the defendant at the moment.
He further said Abaribe was no longer interested in offering his consent to serve as Kanu’s surety in view of recent happenings.
The judge, therefore, gave Ogbonna options ranging from automatic forfeiture of his client’s N100 million bail bond, to time within which to still search for Kanu.
Ogbonna, having received the hint of the court, selected the latter option.
Chidiebere Onwudiwe, Benjamin Madubugwu and David Nwawuisi are standing trial along with Kanu on five-count charge of conspiracy to commit treasonable felony and publication of defamatory materials.
Additional report from Vanguard
