Devastating oil spills in the Niger delta over the past five decades will cost $1bn to rectify and take up to 30 years to clean up, according to a UN report. The UN Environment Programme (Unep) has announced that Shell and other oil firms systematically contaminated a 1,000 sq km (386 sq mile) area of Ogoniland, in the Niger delta, with disastrous consequences for human health and wildlife. Nigerians had "paid a high price" for the economic growth brought by the oil industry, said Unep's executive director. A leaked summary of Unep's Ogoniland study, the first large-scale scientific study of pollution in the area, has been seen by the Guardian. It calls for a clean-up fund of $1bn (£614m) for spills in Ogoniland, and says it will take 25-30 years to restore the environment. Much of the funding for the clean-up is expected to come from the oil companies. The three-year investigation found: • Heavy contamination of land and underground water courses, sometimes more than 40 … [Read more...] about Niger delta oil spills clean-up will take 30 years, says UN
Ncdmb wants more oil firms to list on nse
Venezuela's military on Thursday arrested former Oil Minister Eulogio del Pino and ex-chief of state oil company PDVSA Nelson Martinez days after they were sacked from their jobs by President Nicolas Maduro. Venezuela's chief prosecutor said the arrests were part of an operation targeting 16 people, including some who were "outside of the country." Read more: Could there be a Venezuelan refugee crisis? "We're talking about the dismantling of a cartel of organized crime that had taken over PDVSA," said Attorney General Tarek William Saab. Del Pino and Martinez are the highest-ranking officials to be swept up in an anti-corruption purge at the state oil giant. Both men were accused of graft and attempting to sabotage the country's energy industry. Venezuelan authorities last week arrested six executives of PDVSA's US-based subsidiary Citgo on suspicions that they signed contracts to refinance billions of dollars in debt without receiving prior approval from the government. Nicolas … [Read more...] about Venezuela arrests ex-oil bosses for sabotage attempt and corruption
Saudi Arabia has approved an ambitious strategy to restructure the kingdom’s oil-dependent economy, involving diversification, privatisation of massive state assets including the energy giant Aramco, tax increases and spending and subsidy cuts. King Salman bin Abdulaziz announced cabinet backing for the Saudi Vision 2030 plan in a brief televised announcement on Monday in which he called on his subjects to work together to ensure success. Shares on the Riyadh stock market rose sharply. Under Salman, who came to the throne in early 2015, economic strains have been the backdrop to rising tensions with regional rival Iran, the threat from Islamic State, the wars in Syria and Yemen, and a sense that the kingdom’s decades-long relationship with the US is fraying. Mohammed bin Salman, the king’s son and deputy crown prince, gave details of the economic reforms in a pre-recorded TV interview – part of a proactive media strategy designed to advertise a sense of dynamism … [Read more...] about Saudi Arabia approves ambitious plan to move economy beyond oil
The residents are seeking compensation from the British-Dutch company over two oil spills in 2008, having failed to reach a compensation deal last year. London-based law firm Leigh Day, which represented Bodo residents in the talks and will do so in next year's court case, called Shell's initial offer "insulting." Sources familiar with the talks said Shell proposed a settlement of 7.5 billion naira ($46 million, 35 million euros). Lawyers for the villagers say the local environment was devastated by the two spills, depriving thousands of subsistence farmers and fishermen of their livelihoods. Martyn Day, senior partner at Leigh Day, said each individual would end up with around 275,000 naira (1,300 euros, $1,700) after subtracting a lump sum to be paid to the community. He claims most of the fishermen affected by the spills earn $5,000 to $8,400 per year. "Our clients know how much their claims are worth and will not be bought off cheaply," Day said in a statement. He called this … [Read more...] about Nigerian community fights Shell in UK court over oil spills
As the Organization of Petroleum Exporting Countries (Opec) meets on 2 June, questions are rising about the oil cartel’s continuing relevance. Many Opec members have suffered as the oil price has collapsed and countries, most notably Saudi Arabia and Iran, have fought to retain market share rather than set prices by adjusting production. Crude-oil prices briefly fell under $30 a barrel for both Brent and West Texas Intermediate earlier this year, but have rebounded, with values touching $50 for Brent Thursday. Unarguably the price war has hurt the US shale industry as many Opec members had wanted. Increased demand because of the low prices is adding to their optimism that the price war has worked. The higher prices mean oil producers can breathe a little easier, although even at $50 those prices aren’t making money. Bart Melek, head of commodity strategy at TD Securities, said Opec’s mission to grab market share is working. Opec can say that the fundamental outlook … [Read more...] about Is Opec relevant in an oil market of falling prices and overproduction?