Mobil Oil Nigeria plc, has recorded a turnover of N54.5billion as against N50, 809,605billion recorded in previous year, with a profit after tax of N1.131, 103billion, representing a decrease of 34 per cent compared with the 2006 performance.

Chairman/Managing Director, Mobil Oil Nigeria plc, Olumide Onakoya who made the disclosure at the 30th Annual General Meeting and presentation of the 2007 Annual Report and Financial Statements of the company said the increase in turnover was due to the hike in the pump Prices of petrol products during the second quarter of 2007.

He stated that the dip in profit after tax was due to the one time restructuring charges of N1.97 billion taken during 2007 with the separation of 69 impacted employees and an additional N0.34 billion for 14 employees who left the company voluntarily.

The charges according to him were partly offset by exceptional gains from the sale of assets during the period. The company during the period under review, approved a dividend payout of N1, 129,865,000 to its shareholders, representing a dividend of 470 kobo per 50 kobo share for shareholders and a bonus of one share for every four held as at the close of business on April 28, 2008.

Onakoya assured the shareholders of the company's determination to sustain its investments in order to give them value staked in them adding that the investments include the ongoing construction of 7500 metric tons tank in Apapa expected to be completed in September and the acquisition of lands in Lagos and Abuja for the construction of retail outlets during 2009-2010.

“We are reporting a turnover of N54.5 billion and profit after tax of N1.1 billion which respectively represent an increase of seven per cent and decrease of 34 per cent when compared with 2006 performance. Increase in turnover is largely due to fuel pump price increases during the second quarter of 2007. Despite severe fuel shortages experienced during the same period, we grew fuel volumes by two per cent and maintained our market share.

“Our lubricants sales through our accredited distributors grew by 13 per cent and the general lubricants business continued to be a strong contributor to overall results. We continued to make steady investments in our Lube Blending Plant to upgrade technological processes. We strengthened our supply capability with the introduction of a new range of our-litre and one-litre packages during the year.

“In accordance with our tradition of constantly delivering returns that are strong, competitive and superior in long-term value to our shareholders, the Board is pleased to recommend for your approval a dividend of 470 kobo per 50 kobo share.
In addition, a bonus of one share for every four held as at close of business on 28 April, 2008 is being recommended by the Board for your approval”, he said.

In a bid to further boost its operations in the downstream sector of the nation's oil and gas industry, Oando Plc recently entered into the business of insecticide production with the introduction of its own brand into the Nigerian market.

The company said during the introduction of the product to the press recently that the diversification was also informed by the need to consolidate its non-fuel revenue earnings.
Commenting on the new brand of aerosol, tagged Oando Insecticide, the Chief Operating Officer of the company's marketing arm, Lara, Banjoko, said the production of the product was to meet and exceed customers' expectations.

“In our usual way of meeting and exceeding customer expectation, we have formulated for our customers an effective product against all domestic insects including mosquitoes and other disease carrying insects. This is our way of supporting Nigeria in achieving the objective of the Millennium Development Goal of eradicating killer diseases such as malaria in Africa,” Banjoko said.

Chief Marketing Officer of the company, Tsola Barrow said the insecticide with unique lemon fragrance was produced after adequate research was conducted.
Quimics Oro, a Spanish company is currently producing the product for Oando Marketing pending the time the company would build its own plant.

The Minister said the money disbursed before the budget approval were released based on the advice from the office of the Attorney General of the Federation. “First we have to understand that we have to pay salaries as at when due. Section 82 of the Constitution of the Federal Republic of Nigeria states that if the Appropriation Bill has not been passed, the President may authorize the release of money from the consolidated revenue for the purpose not more than six months.

“Government business should not stop because the approvals are being sought. By the interpretation we got, it does not say only recurrent but it says money so that government business does not stop. We made extra care so that we don't violate the constitution. It has to be projects approved by the National Assembly and it has to be ongoing projects. Projects on the proposal that we sent to the National Assembly, we did not release money. We felt that it was right to do so, so that government business will not stop. And we relied again on the Financial Act,” he said.

On the circular sent to MDAs by the Finance Ministry, Usman said although it was signed by the Minister of State, he will take responsibility for it. He however assured the Joint Committee that efforts would be made to “start the 2009 budget process on time so that this problem will not arise again.”

On the controversial release of capital expenditure totalling N109 billion, which had prompted the House's invitation to the Minister, Usman told the House that the monies were disbursed based on the advice from the Attorney General's Office.
The Minister who came in the company of his Minister of State, Remi Babalola and DG Budget Office, Dr. Bright Okogwu apologised to the lawmakers for his inability to honour two earlier invitations before the House resolution of May 22.

“First, let me say that I know that I have many bosses. And I am sure that the wider public knows that I have one immediate direct boss and he has a penchant for the rule of law. The second aspect is the respect for the constitution. It will therefore be foolish of a minister to refuse to appear before an August Assembly of this nature,” he said.

The Akwa Ibom State government has signed a $12billion (N1.5trillion) deal with a British gas and power firm, Centrica plc, to build a new liquified natural gas (LNG) plant in the state.
State governor, Godswill Akpabio said during the week that the plant would be built on Tom Island in Mbo district, southeastern part of the state.
The governor did not however, give details of the project, or the planned capacity of the proposed LNG.

“We are in partnership with an international organization called Centrica to make our LNG dream come true. The project is a wonderful investment,” he said.
It would be recalled that the British firm had late last year hinted that it had signed a deal to look at the possibility of developing a Nigerian LNG venture alongside Norway's StatoilHydro.
According to the company, the memorandum of understanding would see the firm and StatoilHydro each taking 37.5 per cent interest in the consortium, with infrastructure company, Consolidated Contractors holding 25 per cent.

Under the new agreement, SPDC will finance NNPC up to the tune of $1.3 billion or N365.8 billion, which would cover the shortfall in government's equity contributions in the 2008 operations of the NNPC/SPDC/NAOC/EPNL JV, while a 'bridge loan' of $1.8 billion will finance NNPC's outstanding payments for 2006/07 JV cash calls. This money will mostly be used to settle payments due to local contractors and suppliers.

Nigeria, through NNPC, has 55 per cent interest in NNPC/SPDC JV, with SPDC,

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has threatened to mobilize the 15,000 workforce in the Nigerian oil and gas industry for a mass action against Shell's planned sack of 2,000 Nigerian workers.
Speculations have been rife that Shell Petroleum Development Company (SPDC) has perfected strategies to disengage the Nigerians from its 7,000 workforce, claiming the economic situation in the country as an excuse.

But PENGASSAN said it intends to keep a symbiotic relationship with the Federal Government for the sustainable growth of the country, but only on condition that government truly respects the rule of law and the rights of oil workers.

National President of PENGASSAN, Babatunde Ogun who spoke in Abuja said that Shell has no right to sack 2,000 of its Nigerian staff while expatriates still retain their jobs.
Ogun said, Nigeria is the Senior Partner in the Joint Venture (JV) contracts that sustain the SPDC in Nigeria. “If the Federal Government sits by the side and watch Shell sack 2,000 Nigerians in Shell because of some flimsy reasons, then government should be ready with what 15,000 oil workers will do in reaction.”

The PENGASSAN president expressed happiness with the Nigerian National Petroleum Corporation (NNPC) which controls 55 per cent of the JV with SPDC for siding labour on the matter.“I am glad to note that the NNPC has made it clear that since it controls the majority share in the Joint Venture, only staff of Shell who have reached retirement age, or are willing to leave, should do so.

“With this assertion, we want to make it clear that any of our members in Shell who is given a sack letter on account of 'One Shell', should protest through his local chapter of PENGASSAN which will forward it to us at the national secretariat for immediate action,” he said.