- Nigeria, Algeria, others lost $1tn to oil crash – OPEC
Nigeria, Algeria and other members of the Organisation of Petroleum Exporting Countries lost a cumulative revenue of about $1tn as a result of the crash in crude oil prices, the Secretary-General of OPEC, Mohammed Barkindo, has said.
He stated this at the headquarters of the Federal Ministry of Petroleum Resources during a visit to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in Abuja on Monday.
Crude oil prices crashed from over $100 per barrel in 2014 to as low as $23 in 2016, a development that threw many oil dependent countries into economic crisis.
Barkindo stated that the crisis in the oil sector was the worst ever in recent memory, adding that the industry globally lost about $1tn during the period of the oil price fall.
“In terms of the gravity of this cycle, crude oil prices have crashed by over 80 per cent from the fall of 2014 through January 2016. How you survived as a government and institutions under this industry remains a miracle. I’ve been to other countries and I saw how they are struggling, but you have weathered the storm,” he said.
The OPEC scribe, however, explained that the shut-in of about 1.8 million barrels of crude oil per day within a period of six months by the 13 OPEC and 11 non-OPEC members paid off considering the rise in crude oil prices.
He said, “This industry globally has lost nearly $1tn in terms of differed projects and outright cancellation of projects across the supply chain: upstream, midstream and downstream. And this is the greatest threat that is facing future security of supply. We need consistent investments to maintain current production as well as grow the reserves.
“In terms of national revenues, since all our countries are dependent on this commodity, within OPEC alone, we have lost cumulatively about $1tn. Therefore, we, together with our OPEC friends, are determined to solidify this platform to maintain a stable environment and restore confidence for investors.”
Barkindo said diversification of the national economy from crude oil should be given the highest attention, as he noted that countries like Saudi Arabia were diversifying away from the complete reliance on revenue from the sale of crude.
“All our competitors within OPEC are also focused on the issue of diversification. I’m just coming from Saudi Arabia, the largest producer depending solely on oil and gas, they’ve come out with a programme to diversify their economy within the context of the vision 2030,” he added.
Barkindo lauded the Federal Government for exiting the joint venture cash call agreement it had with international oil companies.
According to him, successive governments had tried to end the cash call regime but could not despite the financial burden that it had on Nigeria as well as the country’s inability to meet up with the demands of the agreement.
“By ending it, you are clearing an over-hang of debt that is too high, yet maintaining the level of production and also focusing on an incremental growth that will continue to sustain not only the industry, but the domestic economy,” he said.
Barkindo observed that the high turnover of group managing directors at the NNPC had also been a challenge to the smooth running of the corporation, but expressed delight that the current management was doing well.
NNPC Supplies 1.44 Billion Litres of Petrol in January 2021
The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.
The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.
NNPC said the 1.44 billion litres translate to 46.30 million litres per day.
Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).
The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.
Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.
For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.
Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.
NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021
The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.
This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.
It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.
NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.
Nigeria’s Food Inflation Hits 22.95 Percent in March 2021
Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.
Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.
Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.
On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.
Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.
Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.
The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.
However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.
Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.
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