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BRENT WTI MOVE UP ON PROMISE OF US-CHINA TRADE TALKS

BRENT WTI MOVE UP ON PROMISE OF US-CHINA TRADE TALKS

06 September 2019

Brent Oil Futures was up 0.13% at $61.03 a barrel, as of 12:40AM ET (04:40 GMT), while Crude Oil WTI Futures was up 0.12% at $56.37 a barrel. The EIA...

PRAISE SINGERS  GO TO "GREET" NEW  GMD NNPC

PRAISE SINGERS GO TO "GREET" NEW GMD NNPC

04 August 2019

If journalism is to have meaning, to fulfill its raison d'etre, then it must be about speaking truth to power; giving a voice to the voiceless. The National Chairman of...

IS IT A NIGERIAN GAS FLARE COMMERCIALISATION PROGRAM ?

IS IT A NIGERIAN GAS FLARE COMMERCIALISATION PROGRAM ?

31 July 2019

The Nigeria Gas Flare Commercialisation Programme (NGFCP) is a prime example of a project well concieved but poorly executed and unlikely to achieve most of its objectives despite its inherernt...

VR CAPITAL BUY 25% OF P&ID AS NIGERIA FACE $9BN FINE

VR CAPITAL BUY 25% OF P&ID AS NIGERIA FACE $9BN FINE

05 June 2019

First, a health warning. This article is about recalcitrant, inept and quite possibly corrupt Nigerian politicians and government ministers. It is certainly about incompetence and misconduct in public office. It...

DISASTER AS UNEMPLOYMENT LEAPS BY 30%  TO 20.9m

DISASTER AS UNEMPLOYMENT LEAPS BY 30% TO 20.9m

29 May 2019

Nigeria is sleepwalking into a disaster which has the potential to unleash instability, insecurity and crippling hardship. Unemployment is always a cause for concern, it is the clearest indication that...

 NIGERIA NGIGE UNDEREMPLOYED OR UNEMPLOYABLE?

NIGERIA NGIGE UNDEREMPLOYED OR UNEMPLOYABLE?

08 May 2019

Working on the assumption that the Minister of Labour and Employment, Senator Chris Ngige has not been misquoted it is difficult to understand his recent pronouncement and what now seems...

NIGERIA ANOTHER MOU ANOTHER DAY

NIGERIA ANOTHER MOU ANOTHER DAY

01 May 2019

Nigeria has announced ambitious plans to double its oil production by 2025, targetting 4 million bpd in six years’ . Maikanti Baru, Group Managing Director at the Nigerian National Petroleum...

NNPC REFINERY WOES 2019

NNPC REFINERY WOES 2019

24 April 2019

The Nigerian Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has not unpredictably, stated that Nigeria’s continuous subsidy of petrol consumption means the Nigerian National Petroleum Corporation (NNPC) will...

NIGERIA OPEC STAND FIRM

NIGERIA OPEC STAND FIRM

28 March 2019

Nigeria and other member countries of the Organisation of Petroleum Exporting Countries (OPEC) as well as their non-OPEC allies led by the Russian Federation have said they are committed to...

PALM OIL PRODUCTION UNDERPERFORMS

PALM OIL PRODUCTION UNDERPERFORMS

18 March 2019

PALM OIL PRODUCTION A MEAGRE PERFORMANCE Nigeria from gaining a substantial share of the global oil palm industry now worth $62 billion annually, casting doubts on government’s ability to grow...

NIGERIA REFINING THE VISION

NIGERIA REFINING THE VISION

18 March 2019

NIGERIA REFINING THE VISION Nigeria is the only OPEC member country that imports gasoline (PMS) and holds the dubious distinction of being the largest importer in the world. The Nigerian...

IS THE PGB FATALLY FLAWED?

IS THE PGB FATALLY FLAWED?

18 March 2019

IS THE PIGB FATALLY FLAWED? Ten years after the Petroleum Industry Bill began its tortuous odyssey which has included the Bill being broken into four portions, both houses of the...

CBN PUMP UP THE T-BILLS

CBN PUMP UP THE T-BILLS

18 March 2019

CBN PUMP UP THE T-BILLS The Central Bank of Nigeria (CBN) plans to raise a total of N1.809 trillion from the debt market, in the first quarter of 2019.This is...

TIN EXPORTS NIGERIA

TIN EXPORTS NIGERIA

17 March 2019

TIN EXPORT NIGERIA Synterra are able to export high grade tin ore from Nigeria. We agregate the Mining production of a number of artisanal miners and consolidate volumes for exportSynterra...

BERYLLIUM MINING OPPORTUNITIES

BERYLLIUM MINING OPPORTUNITIES

17 March 2019

The Nigeria Solid Mineral and Mining Sector has in effect made the great leap forward which will now allow investors to take advantage of the vast mineral potential Nigeria possess....

« »
Wednesday, 01 May 2019 13:10

NIGERIA TO DOUBLE OIL PRODUCTION BY 2025

Written by


Nigeria has announced ambitious plans to double its oil production by 2025, targetting 4 million bpd in six years’ . Maikanti Baru, Group Managing Director at the
Nigerian National Petroleum Corporation (NNPC), admits that the target is aggressive but appeared certain when he said last week that Nigeria is committed to
meeting it. The GMD has a penchant for making overly optimistic if not widly unreasonable predictions which only serve to undermine confidence in the National oil company.

Nigeria currently pumps around 2.2 million bpd in both crude oil and condensate. In March Nigeria’s crude oil production stood at 1.733 million bpd, up by 11,000 bpd
on the previous month. Over 10 years ago Nigeria commited to increase oil reserves to 40 billion barrels, that commitment never really looked plausible and has been kicked down the road until 2025 too. Nigeria has not had a bid round for over 10 years during which the passage of the Petroleum Industry Bill, the legislation created to provide certainty to investors has not been passed. It is hard to see how any investment can be made when the legislation that is meant to provide the fiscal and regulatory regime has not be passed.

It is against this backdrop that Nigeria and Saudi Arabia plan to draft a memorandum of understanding on an oil and gas partnership that could see the construction
of a new refinery and investments in liquefied natural gas, according to the Nigerian oil Ministry. The Ministry feels a possible agreement will open the doors for Nigeria
to “potentially benefit from Saudi Arabia’s Aramco’s recent aggressive oil sector investments across the globe while serving as the nerve centre for its presence in
Sub-Saharan Africa,” Kachikwu the Oil Minister said.

The Buhari Administration has a intuitive affinity for Saudi Arabia with the Nigerian government indicating back in February that Nigeria was, "as a responsible member of he Organisation of Petroleum Exporting Countries, willing to go along with the Saudi initiative of limiting oil output to push up prices". Buhari said then " “I know that it is in our interest to listen. We will cooperate.”

There may well be synergy and a mutually beneficial opportunity as Saudi energy minister Khalid Al-Falih reiterated the possibility of establishing an independent
refinery in Nigeria, considering it the best hub from which to reach other African countries. Nigeria imports the bulk of its petrol, under an offshore processing program
called Direct Sales Direct Purchase (DSDP) but referred to as a swap. Despite being Africa’s biggest crude oil producer, and due to its comatose refineries Nigeria
import over a million metric tons of refined petroleum product every month . NNPC and the Ministry have been desperately looking for investors into the existing refineries with no success.

Saudi Aramco is seeking to expand its downstream operations such as refining and petrochemicals production as part of its drive to become the world’s largest
integrated energy firm. Nigeria hopes that areas of interest will include the existing and new refineries, LNG investments and product supply trading in crude and
refined products,” the Nigerian oil ministry said in a statement.

Yet it was only 3 years ago the Nigerian Government, with much fanfare claimed it had signed a Memoranda of Understandings (MoU) with a number of Chinese firms
to invest $50 billion in the Nigerian oil and gas industry, to bridge the infrastructure funding gaps in the industry. Nothing has materialised. Largely because the
investment climate in Nigeria has not been right. The Nigerian government are going to have to commit to deregulation to get any investments in Refineries. They will
most likely need to sell off the existing Refineries in a well managed and transparent process

There is also the question of insecurity. Although the number of militant attacks on oil infrastructure has abated over the past couple of years, oil theft from pipelines is
still plaguing facilities and leading to leaks that often force operators to shut down export pipelines .Nigeria is also looking to Saudi Arabia to secure potential investments in its downstream sector. This past weekend, Nigeria’s Oil Minister Emmanuel Ibe Kachikwu met with Saudi Energy Minister Khalid al-Falih and said that the top Saudi oil official had expressed “the strong readiness of the Kingdom of Saudi Arabia to sign a definite and high value MoU with Nigeria for oil sector development.”

 

 

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