Connect with us

Economy

India, Europe Slash Imports of Nigerian Oil

Published

on

Crude oil
  • India, Europe Slash Imports of Nigerian Oil

Nigeria’s crude oil exports dropped by about 11 per cent in the third quarter of the year as India and some European countries slashed their imports in September.

A new report from the Nigerian National Petroleum Corporation showed that India, the single largest buyer of Nigerian crude, bought 10.12 million barrels in September, down from 12.54 million barrels the previous month.

Indonesia, another Asian buyer, cut the amount of crude oil purchased from Nigeria to 1.89 million barrels from 4.79 million barrels.

Europe, Nigeria’s biggest regional market, saw its imports of the country’s crude plunge to 16.25 million barrels from 20.77 million barrels in August.

In the region, France, Spain and the Netherlands reduced their imports to 2.84 million barrels, 2.52 million barrels and 3.09 million barrels, respectively in September from 7.57 million barrels, 3.95 million barrels.

In Africa, Nigeria’s exports declined to 5.95 million barrels in September from 8.90 million barrels the previous month.

The country’s total exports dropped to 46.7 million barrels in the month from 50.13 million barrels in August. It exported as much as 66.68 million barrels in January.

Its exports for the third quarter fell to 141.22 million barrels from 158.23 million barrels in the second quarter, the NNPC data showed.

The US, which overtook India in June as the single largest buyer of the Nigerian crude, saw its import of the country’s crude rise to 8.60 million barrels in September from 4.14 million barrels the previous month.

The report showed that in September, crude oil production in Nigeria rose to 1.64 million barrels per day, representing 9.91 per cent increase over the production in August 2016 but it was 24.92 per cent lower than the performance in September 2015.

The country has seen a rise in militant attacks on oil installations in its main oil-producing region, Niger Delta, in recent times, denting oil production.

The corporation said, “Increase in production is credited to production restoration at Usan, post-completion of well intervention work at Ebok and Chevron Nigeria Limited-Escravos gained from production fluctuation.

“However, some of the major drag to our performance include the subsisting force majeure at Forcados terminal, Qua Iboe terminal and Brass Terminal, attack and subsequent fire outbreak on major pipeline to Bonny terminal.”

The NNPC said the cumulative production capacity deferred due to shut in amounted to 1.15 million bpd.

“Onshore and shallow water assets, where government’s take is high, remain targets of the militants. Hence, securing onshore and shallow water locations remains a priority to restore production,” it said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

PENGASSAN to Shut Down 200,000bpd Agip Oil

Published

on

Agip Oil Company

PENGASSAN to Shut Down 200,000bpd Agip Oil

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), an oil workers’ union, is threatening to shut down 200,000 barrels per day of crude oil production managed by Agip Oil Company Limited over what it described as unfair labour practices and intimidation of workers.

The Union, in a letter released on Wednesday, gave Agip Oil seven days to look into the concerns raised by the union or have its operations disrupted.

In the letter signed by Lumumba Okugbawa, General Secretary, the Union also accused Agip Oil of “subtle threat against our members and demobilisation of members access to the company facilities.”

PENGASSAN also urged Agip Oil to withdraw its “toxic memo’ and open discussion with the union branch leaders with a view to discuss and resolve the issues and strengthen industrial harmony.

However, as a law-abiding association, we view the insinuation by Agip management that the legitimate actions of the union was unlawful as laughable and a mockery of the relevant sections of the labour laws detailing on how industrial actions and disputes should follow.

Continue Reading

Economy

Gbajabiamila Says House of Reps Will Pass Petroleum Industry Bill in April

Published

on

Gbajabiamila Says House of Reps Will Pass Petroleum Industry Bill in April

Femi Gbajabiamila, the Speaker of the House of Representatives, on Wednesday, said the Reps will pass the Petroleum Industry Bill (PIB) into law in April 2021.

The speaker disclosed this during his opening remarks at the ongoing public hearing on the proposed legislation organised by the House Ad-hoc Committee on PIB.

He said “We intend to pass this bill by April. That is the commitment we have made. Some may consider it a tall order, but we will do it without compromising the thoroughness.

Gbajabiamila’s comment came two days after Ahmad Lawan, the Senate President, said the passage and assent to the Petroleum Industry Bill (PIB) will be done before the end of May.

Once passed into law, experts expect the bill to boost Nigeria’s economy, encourage competition and boost revenue.

Continue Reading

Economy

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

Published

on

Global debt

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

Continue Reading

Trending