Daily Watch – Shell faces fresh charges over Malabu, Refineries’ losses roll on

UBA has announced full-scale banking operations in the UK, three weeks after the firm launched its operations in Mali .The formal launch is sequel to the authorisation of the Prudential Regulation Authority and the Financial Conduct Authority for UBA UK Limited to carry out full scale wholesale banking across the United Kingdom. The development consolidates UBA’s unique positioning as the first and only Sub-Saharan African financial institution with banking operations in both the Uk and the United States, thus reinforcing its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the world.

Dutch prosecutors are preparing criminal charges against Royal Dutch Shell in the Netherlands over the $1.3 billion acquisition of a Nigerian offshore oilfield, ramping up pressure on the energy firm that already faces bribery charges in Italy over the case. Shell and Eni, Italian oil major, are embroiled in a long-running corruption case revolving around the purchase of OPL 245, a lucrative oil block, which is one of the biggest sources of untapped oil reserves in Africa, with reserves estimated at nine billion barrels, from Malabu Oil and Gas, a company owned by a former Minister of Petroleum, Dan Etete. According to the prosecutors, the oil and gas giant would also be charged in two domestic cases relating to an explosion at a petrochemical facility and emissions. Shell said it had been informed by the Dutch Public Prosecutor’s Office that it had nearly concluded its Nigeria investigation and was preparing criminal charges directly or indirectly related to its 2011 settlement of disputes over the OPL 245 oilfield. 

The sum of ₦639.99 billion, out of the total pension fund of ₦8.49 trillion in Pension Fund Administrators’ custody, had been invested in banks as at the end of November 2018, figures from PenCom have shown. The money invested amounted to 7.49 per cent of the funds managed by the pension operators. During the period under review ₦15.7 billion or 0.19 percent of the pension assets were invested in mutual funds, while ₦17.51 billion or 0.21 percent of the funds were invested in cash and other assets. The role of pension funds in economic development had moved into the focus of public attention, particularly with regard to Nigeria’s growing need for long term capital, the President, Pension Fund Operators Association of Nigeria, Aderonke Adedeji, said.

Nigeria’s refineries posted a cumulative loss of ₦114.3 billion in the first 11 months of 2018. Figures obtained from the NNPC showed that the Kaduna Refining and Petrochemical Company, made a loss of ₦31.62 billion, Port Harcourt Refinery recorded a ₦44.2 billion loss, while Warri Refinery lost ₦38.5 billion. Among the three refineries, it was observed that Kaduna refinery earned the lowest revenue of ₦3.1 billion, Port Harcourt refinery made ₦140.82 billion, while Warri refinery had a total revenue of ₦140.23 billion. The NNPC’s figures also showed the budgeted revenue, expense and surplus that were expected from the refineries during the period. Nigeria’s refineries have been performing below standard over time, a development that made the government to search for international financiers to revamp the facilities, although this move had yet to succeed.