Bavijas Energy

On Tuesday this week, a 400-level student of Petroleum Engineering at the University of Uyo asked me why the Dangote refinery is sourcing crude oil from far away the US when it has NNPC Ltd. as its equity shareholder. And I gave him an honest response that went thus:  “Dangote doesn’t seem to trust NNPC Ltd much when it comes to crude delivery. NNPC Ltd has failed before, so it (Dangote) is taking an extra layer of supply assurance.” Manufacturers with large production output worry when their supply base can't deliver on their promise. It makes them vulnerable to demand disruptions and volatility, which, of course, are undesirable for businesses.   To avert this, they often depend on a list of external suppliers to cut lead times and achieve assurance of supply. This is exactly what Dangote is beginning to do to sustain its refinery operations since NNPC Limited, its equity shareholder, couldn't deliver as when due. I don't think Dangote broke any agreement with NNPC Ltd. b

Sometimes, digital copies or content don't necessarily have to be long to make an impression. Two months ago, I woke up to a congratulatory message from LinkedIn that a recent post I’d made about the OPEC supply cut got featured in Today’s Top News at LinkedIn News. It was one of just three similar posts selected and stood tall amongst two other posts from top media houses like The Wall Street Journal and The Associated Press. This feat wasn't a funny joke but rather a high bar in my writing career that I had to either maintain or eclipse.  However, upon critical assessment, I underlined 4 things that stood the post out. • It was precise  • It tagged relevant networks • It referenced a reputable source • It addressed a very controversial issue  Next time you’re prepping a post on social media, especially on LinkedIn, you should adopt at least two of the above. It helps a lot. Attempting this may not earn your post a feature in LinkedIn's Top News as mine did but, I'm su

Globally, oil and gas development and production often require high capital expenditures (CAPEX), high technological expertise and the ability to manage investment risks. Oil companies that don't have the financial wherewithal to undertake such capital-intensive investments or projects will either bow out of the bidding process or adopt strategic approaches that could help them develop enough capabilities to overcome challenges waiting up front. Usually, two contractual arrangements are adopted to achieve this. One is a Joint Venture (JV), while the other is a Production Sharing Contract (PSC). What is a Joint Venture (JV)? A joint venture (JV) is a strategic equity-sharing agreement where two or more parties combine resources to execute an oil & gas transaction and mitigate the risk associated with the business. You may also call it a Joint Operating Agreement (JOA). Typically, the operators of a JV asset each have to contribute funds, in a proportionate degree, to develop the

THE OTHER DAY AT MY OFFICE, a friend of mine and of course a cerebral fellow in the business of digital marketing - Mr Peter Eyo, while in an insightful group discussion with other male friends who came around, advised that business operators should keep personal income separate from business income.  And when we asked why, he gave a generous and reasonable explanation. Today, the world’s largest cryptocurrency exchange, Binance, has allegedly committed a similar blunder. The firm is said to have commingled customer funds with company revenue in 2020 and 2021, in breach of US standing financial rules that require customer money to be kept separate. “If true, it then means that money flows at Binance lack internal controls to ensure customer funds were identifiable and segregated from company revenues”, three former US regulators said.  If you need to learn more about why personal income shouldn’t be commingled with business income, book a free session with me by leaving a message in th