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Oil Companies Cut over 440,000 Jobs -NNPC

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NNPC
  • Oil Companies Cut over 440,000 Jobs -NNPC

The Nigerian National Petroleum Corporation (NNPC) has stated that the current downturn in the oil and gas industry has forced the industry to cut 440,000 jobs globally since 2014.

In a keynote address at the recent 10th Annual sub-Saharan Africa Oil & Gas Conference held in Houston, Texas, United States, NNPC’s Chief Operating Officer in charge of Ventures, Dr. Babatunde Adeniran said in addition to the job cuts, there were retirement of workers who started their careers in the 1970’s and 1980’s.

“Unfortunately, the industry is not doing enough to attract young millennials to fill the knowledge gap created by the latter exits. The downsizing and lack of job opportunities in the industry have created a situation where many students no longer want to enroll in oil & gas-related courses. There is an imminent talent shortage,” he said.

Adeniran, who delivered an address on: “Current state of our Industry and the Transformational Adjustments Required to Succeed in this new Petroleum Era,” noted that universities in Nigeria and sub-Saharan Africa will need to double their graduate supply of petro-technical professionals by 2020.

He said the discovery of abundant unconventional resources like shale oil and gas had generally changed the global oil and gas landscape

“On the supply side, low prices and increased price volatility have shifted the industry from large complex mega projects that will require years to develop to smaller, quick-to-monetise discoveries,” he said.

Adeniran said there had been a paradigm shift from “big oil” to “fast oil”.

According to him, the U.S. shale and light tight oil (LTO) players with short exploration-to-production cycles and low breakeven prices have become the new “swing producers”.

Furthermore he said, they can respond quicker to market demand and are pushing out slower, higher cost producers from the supply curve.

He said the oil and gas industry is at a cross-road as the fundamental changes, which had occurred over the last five years, have permanently disrupted the supply and demand dynamics.

Adeniran added that many oil and gas- rich countries now face the risk that their unproduced reserves might become worthless in future.

He further stated that undeveloped resources are likely to become “stranded” in the ground.

To thrive in the new petroleum era, Adeniran argued that companies needed to re-think the essence of their business and their role in the value chain.

“Thinking outside the box: Over the last three years, IOCs have been less susceptible to upstream margin erosion from oil price drop because of their diversified presence across the value chain. Likewise, leading NOCs like Statoil and Saudi Aramco have been optimising their “non-oil” ventures in properties, shipping, medical, insurance and bio-fuels, and so is NNPC. NNPC is beginning to toll along this line by creating “Ventures” Directorate in 2016 to commercialise some of its “cost center” entities and create non-core businesses for additional revenue generation. Adopting a diversified portfolio provides a natural hedge against the inherent volatility of the upstream business,” he explained.

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.

Business

FG Says Nigeria’s Rice Production Rises by 1.2mmt in Three years

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FG Interventions Boost Rice Production by 1.2mmt in Three Years

The Federal Government has said the nation’s rice production increased by 1.2 million metric tonnes within three years due to its interventions in the rice value chain.

This was disclosed by Mustapha Shehuri, Minister of State for Agriculture and Rural Development, in Omor and Umerum at Ayamelum Local Government, Anambra State while assessing the Federal Government rice farms/mills project there.

He added that the federal government is working on revitalising its rice farm in Anambra to boost rice production, increase new jobs and improve the standard of the people in the state and Nigeria at large.

The minister was quoted as saying, “The present administration has provided various interventions to promote investment in the rice sector.

“As a result of these interventions, the country has increased its production from 4.8 million metric tonnes of milled rice in 2015 to over six million metric tonnes by 2019 with huge reduction in the nation’s deficit.

He added that President Muhammadu Buhari administration is pursuing and implementing programmes to achieve self-sufficiency in rice production because of its strategic importance as a major staple food crop.

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Economy

Lagos State Declares N89bn Surplus in 2019 After BudgIT False Report

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Lagos

Lagos State Economically and Financial Stable, Declared N89bn Surplus in 2019

Lagos State, Nigeria’s commercial capital, has declared an impressive N89 billion surplus for the year ended 2019.

This was disclosed in the state’s 2019 Audited Financial Statements.

The report was released following BudgIT, a public sector-focused financial information house, recent report titled ‘Ability of States to Meet Monthly Recurrent Expenditure and Loan Repayment Obligations, 2019’, that claimed the state was among states that can not meet monthly recurrent expenditure and loan repayment obligations.

A report, BudgIT later withdrew and apologised for misleading the public as several factors were not taken into consideration during the report. It added that Lagos was financially buoyant, and the only state with such financial capacity to function without federal allocations.

On Monday, Dr Rabiu Olowo, Lagos State Commissioner for Finance, in a statement to media houses, said the state was economically and financially buoyant.

In the statement titled ‘Lagos financially, economically stable’ said the commissioner said the state is presently doing 103 percent of the budget targets despite COVID-19, this he said is well above 2019 figures.

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Economy

Buhari to Inaugurate Nigeria’s First Standard Gauge Train in Itakpe-Warri Today

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Light Rail

Nigeria’s First Standard Gauge Train to Be Inaugurated Today

President Muhammadu Buhari will be in Itapke-Warri today, September 29, 2020 to inaugurate Nigeria’s first standard gauge train, the Itakpe-Ajaokuta-Warri rail line.

Fidet Okhiria, the Managing Director, Nigerian Railway Corporation disclosed this on Sunday.

Okhiria explained that President Buhari will conduct the inauguration virtually and not be physically present at the event.

He, however, said Mr. Rotimi Amaechi, the Minister of Transportation, would lead other members of the Federal Executive Council as well as other government functionaries to the event.

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