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Barclays slashes oil price forecast to $103pb

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Barclays slashes oil price forecast to $103pThe Barclays of the United Kingdom has slashed Brent oil price forecast to 103 per barrel from its earlier $111 previously projected considering the Russian oil supply and an expected surplus on the market.

The bank also cut its outlook on near-term WTI Crude prices by $8 a barrel, expecting the U.S. benchmark to average $99 per barrel in both 2022 and 2023.

Early on Tuesday, WTI Crude prices were trading at below $90, at $89 per barrel, and Brent was at $94 a barrel after a slump on Monday following dismal economic data out of China, stoking fears of demand in the world’s top crude oil importer.

Two months ago, Barclays raised its oil price forecast to $111 a barrel Brent, citing the effects of the announced EU embargo on Russian seaborne imports and delays in the renewal of the Iran nuclear deal.

The recent sell-off in oil was the result of still resilient Russian oil supply and elevated market concerns that an economic slowdown, or a recession, is coming, Barclays said in a note carried by Reuters.

Once the EU embargo enters in full force in early 2023, Russian oil supply is expected to drop by 1.5 million barrels per day (bpd) compared to the levels before the Russian invasion of Ukraine, the UK bank said.

Still, the downside to oil prices could be limited because the OPEC+ group could decide next year to withhold some supply from the market if global oil demand slows down in a mild recession, according to Barclays. Several banks have recently downgraded their oil price forecasts in view of still resilient Russian supply and an expected downturn in economies and potentially weaker oil demand.

Earlier this month, Goldman Sachs also revised its Brent price forecast for this quarter to $110 a barrel, down from a previous projection of $140 per barrel, but the investment bank still believes the case for higher oil prices remains strong. Goldman Sachs also revised its fourth-quarter Brent price forecast to $125 a barrel, down from $130 per barrel previously expected. The 2023 projection, however, was left unchanged at $125 per barrel.

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Energy

Eko DisCo reiterates commitment to improved service delivery

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The Eko Electricity Distribution Company (EKEDC) says it is dedicated to ensuring reliable power supply to its customers within the areas under its jurisdiction.

The acting Managing Director, EKEDC, gave the assurance during a town hall meeting, tagged, “Customers Consultative Forum” in Lagos on Thursday.

Customers at the forum were drawn from Ojoo Business Unit, which covers Isashi, Mabaonu, Afro media and Celestial Market.

Others include Iba town, Iba new site, Agboroko, Igbo-Elerin, Ojo, Alaba, Agric, Okoko, Shibiri, Riverine and Jakande area.

Momoh, who was represented by Mr Samuel Edoho, General Manager, Commercial of EKEDC, emphasised the company’s resolve to address customer concerns and enhance service delivery in Ojo Business Unit.

According to her, the forum served as an avenue for customers to voice their issues, while also enabling EKEDC to gather feedback on how to better serve its customers in the covered regions.

The EKEDC’s boss noted that in spite of the challenging economic situation, affecting optimal performance of businesses across the country, the company would continue to provide quality service and remarkable experience to its esteemed customers.

According to her, the company advises customers not to partake in any form of bribery nor condone extortion, or pay money to staff to influence or fast track service requests.

“We urge customers to formally lodge their complaints through the appropriate channels and obtain a Service Request Number (SRN) to enable tracking of such complaints until it is finally resolved.”

She revealed that some customers were still engaging in energy theft through meter by-pass, illegal connections and reconnections, saying that anyone caught involved in such criminal acts would be prosecuted.

According to her, EKEDC has made substantial investments in transformers, injection substations, and other essential equipment to optimise service delivery.

She noted that adequate transformers were available to meet the needs of customers within the network.

“We have more than enough transformers to service our customers.

“EKEDC has invested huge amounts of money to procure equipment for replacement and new installations within its franchise areas,” he said.

On Band A electricity customers, EKEDC boss said that the company would ensure every customer within its network has supply, adding that every customer is entitled to it.

She also said that more customers within the Eko Electricity Distribution Company’s franchise would experience and enjoy a guaranteed minimum of 20 hours of power supply daily.

This, she noted, was in line with the newly approved Multi-Year Tariff Order (MYTO) as the Nigerian Electricity Regulatory Commission (NERC) approves the upgrade of 33 additional feeders to Band A.

She said that the 33 new Band A feeders were approved, making a total of 54 for EKEDC.

“In our bid to serve our customers better, we are looking to even add more feeders to the list of our Band A feeders so that more customers can enjoy a guaranteed 20 hours of power supply daily.

“It is also our commitment to ensure that customers under other service bands, that is, Bands B to E also enjoy their guaranteed minimum supply hours while we work to improve our power supply.

“We are working tirelessly to eliminate supply downtime within our franchise area and achieve our goal of a stable and uninterruptible power supply,” Momoh explained.

On metering, the EKEDC’s boss said that the company had metered over 400,000 customers out of over 600,000 customers, while planning to meter every customer within the stipulated time-frame.

She revealed that  60 percent of the company’s customers had been metered.

“We also plan to meter about 600,000 customers within the next five years, with an annual target of 120,000 meter installations from 2024 to 2028.

“The company had initiated a comprehensive five-year metering strategy, aimed at eliminating estimated billing across its network,” she added.

In his response, Chairman of the EKEDC Customers Forum, Mr Bayo Oladosu, advised the company to create a platform for dialogue, address challenges and knowledge sharing to better serve the customers.

He urged EKEDC to invest more in effective service delivery and to prioritise resolving customer issues promptly to build and maintain trust.

Oladosu highlighted common customer concerns such as overbilling, erratic power supply, and infrastructure issues, stressing that the forum was essential in achieving peaceful resolutions.

He called on EKEDC to fulfil their promises to customers and ensure the installation of necessary equipment for improved service delivery.

Furthermore, he suggested the establishment of a dedicated platform for addressing customer issues amicably and recommended that customers take responsibility for securing EKEDC equipment in their communities.

The Chairman also advised customers to report instances of meter bypass and energy theft to mitigate such practices.

Oladosu emphasised the importance of customer cooperation in preventing vandalism and reducing energy theft, which directly impact the operations of distribution companies.

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Energy

DisCos generated N294.95bn in Q4 2023, customer base increased by 3.46% — NBS

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Electricity report recently published by the National Bureau of Statistics has revealed that the total customer numbers of Electric Distribution Companies (Discos) in Q4 2023 stood at 12.12 million from 11.71 million in Q3 2023, showing an increase of 3.46 percent.

On a year-on-year basis, customer numbers in Q4 2023 rose by 9.59 percent from 11.06 million reported in Q4 2022.

Similarly, metered customers stood at 5.61 million in Q4 2023, indicating a decrease in the growth rate of 1.32 percent from 5.68 million recorded in the preceding quarter.

On a year-on-year basis, this grew by 9.38 percent from the figure reported in Q4 2022 which was 5.13 million.

In addition, estimated customers during the quarter were 5.83 million, showing a decrease of 3.34 percent from 6.03 million in Q3 2023.

Similarly, on a year-on-year basis, estimated customers also decreased by 1.73% in Q4 2023 from 5.93 million in Q4 2022. Revenue collected by the DISCOs during the period was N294.95 billion from N260.16 billion in Q3 2023.

On a year-on-year basis, revenue generated in the reference period rose by 26.96 percent from N232.32 billion recorded in Q4 2022.

Electricity supply was 6,432. (Gwh) in Q4 2023 from 5,732 (Gwh) in the previous quarter. However, on a year-on-year basis, electricity supply increased by 14.64% compared to 5,611 (Gwh) reported in Q4 2022.

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Energy

NNPC Ltd, partners donate 2,300-seater ultra-modern library to Niger Delta University

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As part of its commitment to encourage learning and academic excellence, the Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture partners in OML 18 – the Nigerian Content Development & Monitoring Board (NCDMB), Shell Nigeria Exploration and Production Company (SNEPCo), Total Energies EP Nigeria Ltd, Nigerian Agip Exploration Ltd, and Esso Exploration and Production Nigeria (Deepwater) Ltd – have donated a 2,300-seater state-of-the-art digital library to the Niger Delta University, Wilberforce Island, Amassoma, Bayelsa State.

The digital library, a two-storey complex equipped with cutting-edge Information Technology amenities including 100 computer systems, e-learning and research facilities, interactive smart boards, projectors, camcorders, e-books, e-journals, e-learning portal, and reading halls, was handed over to the school authority on Thursday in Bayelsa State.

Other facilities in the library include Wi-Fi Lounge, print and document hall, video and audio recordings, photography and online education centre, e-distant learning hall, Chief Librarian and departmental offices, IT rack room, newspaper archive, stack room for new arrivals, and conveniences.

The library complex is also equipped with a 500KVA power generator, a 500KVA transformer, and a dedicated water borehole fitted with water purification facilities.

The e-library is designed to promote ICT education and provide a conducive learning environment for students and researchers in the school to keep them abreast of global IT practices and advancement.

Present at the commissioning and handover ceremony of the project were: Deputy Governor of Bayelsa State, Senator Lawrence Evwrudjakpor; Pro-Chancellor of the NDU, Matthew Seiyefa; Vice-Chancellor of NDU, Prof. Allen Agih; representative of Executive Secretary of NCDMB, Dr. Ama Ikuru; Deputy Manager, External Relations, NNPC Ltd, Edith Lawson; Managing Director of Shell Petroleum Development Company and Country Chair, Shell Companies in Nigeria, Osagie Okunbor; and Managing Director of SNEPCo, Elohor Aiboni.

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