Hungary Interested In Nigeria’s Oil And Gas Sector

The Hungarian Government has indicated interest to purchase crude oil and Liquefied Natural Gas (LNG) from Nigeria.

This was disclosed by the Hungarian Ambassador to Nigeria, Professor Gabor Ternak, who during a courtesy call on the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, in Abuja.

Ternak said the decision to import crude oil and LNG from Nigeria was informed by the need to bridge the current supply gap being experienced in Hungary.

“Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG import and we are considering purchasing these products from Nigeria,” Ambassador Ternak stated.

The NNPC’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu made this known in a statement on Wednesday.

He said the Nigerian crude oil would be of great help to Hungarian Refineries involved in large scale commercial refining.

The Hungarian envoy stated that Nigeria could also leverage on the bi-lateral relationship with his country by engaging the services of Hungarian firms that specialize in repairs, maintenance and building of refineries as well as medical services.

He said that Hungarian universities with many years of oil and gas engineering expertise, could assist Nigeria in the areas of capacity building of oil workers.

In his remarks, the NNPC GMD, Dr. Maikanti Baru, stated that the Corporation had commenced tendering process for the selection of the 2018 crude oil off-takers, adding that Hungarian companies could utilize the opportunity by participating in the exercise to maximize value from direct purchase, rather than going through a third party.

“If you don’t participate in the tendering process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they could be shortlisted as off-takers” the GMD averred.

He explained that Hungary could purchase LNG through “spot cargo,” an arrangement in which excess production is given to registered off-takers with the Nigerian Liquified Natuaral Gas Limited (LNNG).

“Normally, gas business is a long-term business and NLNG is not different, we already have existing 20-year contract that will expire by 2022. Nevertheless, we have what is called “spot cargoes”, when there is excess production, and the current contractors have gotten there share as enshrined in the contract, the excess production will be given to registered off-takers in the system,” Dr. Baru averred.


Nigerians In Hungary Kick Against 54 Million Euros Loan To Nigeria

Nigerians in Hungary have kicked against the proposed 54 million Euro deal it intends to give the Nigerian Ministry of Water Resources, describing it as a fraud.

A letter addressed to the Hungarian Prime Minister, Victor Orban, signed by the President of the Association of Nigerians in Hungary, Mr. Frederick Omoyoma and 12 others, noted that the loan for the study of the drainage work at the Rivers Niger and Benue and to also check sedimentation in Nigeria is a ¨duplication and misplaced priority since the Nigerian government had on several occasions said it had awarded contracts for the dredging of River Niger and Benue.’’

The petition urged the Hungarian government to channel such funds to projects such as power project which will directly affect the lives of Nigerians rather than granting loan for execution of projects, which the Nigerian government has awarded the jobs ¨in the past, but people syphoned the money¨

The petition read:¨You  may  be  surprised  to  know  that  contracts for  the  dredging  of  the  River  Niger  and  River Benue  have been  awarded  and  commenced in  Nigeria.

This ongoing project will overtake any other ‘study’ that our Minister of Water Resources is seeking loan for.‘’¨What is the point of seeking loan for a ‘study’ that will lead to bigger project expected to stop  flooding  when  a  dredging  project  that  will end  the  same  flooding  has  already commenced?

‘’Is  our  Minister  trying  to  duplicate  a  project  that  has  already  commenced through the financing of our government?
Sir,  as  our  country  continues  to  fight  corruption,  we  wish  to  inform  you  that  contract  for  the dredging  of  the  River  Niger  was  awarded by  the  former President  of  Nigeria  for  N47 billion (114,634,146 euro). Out of that amount, N34 billion (82,926,829 euro) was paid to contractors  and the job  was abandoned.

We know that 54 million euro can equip our army to end terrorism in Nigeria. That amount of money could conveniently settle internally displaced persons in Nigeria. It could also be used to build schools for some children who are learning under deplorable classroom conditions.

Kazaure local government of Jigawa State which is the birth place of our Minister for Water Resources is equally in serious need of
social and economic development. 54 million euro could provide steady electricity to some parts of Nigeria. It could even be
used in upgrading some of our hospitals to the standard of some hospitals in Hungary thereby discouraging our politicians from seeking medical treatments abroad,” it stated.

Sir, we ask that you cancel this loan and assist Nigeria in any other way you may deem necessary. For the sake of our generation and those coming after us, please do not support any intention by the Nigerian Ministry of Water Resources to further severe the thin thread that currently hold us together as a country.

Nigerians are already very provoked by the desire to receive this loan from Hungary. The circumstances and the amount quoted in this loan is very questionable, therefore we urge your government not to honour it since it will not be of benefit to Nigerians¨ it stated.