An estimated 84 million barrels of Nigerian crude oil is currently stranded at sea, a report by Wall Street Journal has said.

In an April 27 report, the newspaper said cargo ships filled with Nigerian crude had nowhere to go and Nigerian oil companies were competing to fill the “last few empty tankers still left at sea”.

The tankers are reported to be coming from production fields managed by Royal Dutch Shell and Exxon Mobil.

According to experts, it would be risky to shut down production in some oil fields as the wells are “too old to be restarted once they go idle”.

However, a situation where companies run out of vessels would make shutting the oil fields inevitable.

“When there are no more vessels to load the crude, then the entire world collapses,” Kola Karim, the chairman of Shoreline Natural Resources, was quoted to have said.

“You will have serious, serious security implications. Unrest.”

According to the Wall Street Journal, a tanker was turned back from the US Gulf Coast and it returned to the Canary Islands, where other Nigerian-hired ships are idled.

The COVID-19 pandemic has resulted in reduced demand for crude oil across the world and a price war between Saudi Arabia and Russia worsened an already bad situation.

In response to the fall in crude prices, Nigeria slashed its 2020 budget and reduced the budgeted crude benchmark.

The Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+) also agreed on a graduated supply cut that is scheduled to last till April 2022.

Nigeria currently has 1,918 active cases of the coronavirus in addition to 385 recoveries and 85 deaths.

NwaNimo1:
Great news....Biafra loading

NwaNimo1:
Great news....Biafra loading

Dangote.......how market?

Handsome777:
An estimated 84 million barrels of Nigerian crude oil is currently stranded at sea.

According to a report by Wall Street Journal, cargo ships filled with Nigerian crude had nowhere to go and Nigerian oil companies were competing to fill the “last few empty tankers still left at sea”.

The grave implication of this situation is that Nigeria stands a strong risk of experiencing tough recession in the coming days because its economic system is dependent on the revenue from sales of crude oil in the global market.

The WSJ report states that most of the stranded oil ships were coming from production fields managed by Royal Dutch Shell and Exxon Mobil.

But experts are of the opinion that it would be risky to shut down production in some oil fields as the wells are “too old to be restarted once they go idle”.

However, a situation where companies run out of vessels would make shutting the oil fields inevitable.

“When there are no more vessels to load the crude, then the entire world collapses,” Kola Karim, the chairman of Shoreline Natural Resources, was quoted to have said.

“You will have serious, serious security implications. Unrest.”

According to the Wall Street Journal, a tanker was turned back from the US Gulf Coast and it returned to the Canary Islands, where other Nigerian-hired ships are idled.

The COVID-19 pandemic has resulted in reduced demand for crude oil across the world and a price war between Saudi Arabia and Russia worsened an already bad situation.

In response to the fall in crude prices, Nigeria slashed its 2020 budget and reduced the budgeted crude benchmark.

The Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+) also agreed on a graduated supply cut that is scheduled to last till April 2022.

Nigeria currently has over 2000 active cases of the coronavirus in addition to 385 recoveries and 85 deaths.

https://candiidonline.com/uncategorized/nigerias-economy-crumbles-84-million-barrels-of-crude-oil-stranded-at-sea-report/

Bekool:



And buhari's govt just recently wasted $3b looking for more crude oil in the north money that was supposed to have been used to develop other sectors of the Nigerian economy. Economic depression not even recession is now looming around Nigeria.

olatunde1234:
kai, over $900,000,000 floating on the sea,
if not for bad spirit that is tormenting Africa (Nigeria in particular)
this continent would've turn to paradise on earth

oluwadabira111:
chai! things go hard! we have been shouting diversification since all these days government no here.now reality is looking squarely at us at the face!

Agboriotejoye:

For real? Can I get a link to dis info

Agboriotejoye:

For real? Can I get a link to dis info

Senator Shehu Sani, during a visit of members of the Kaduna State Students Union to his office in Kaduna, noted that “past leaders have amassed wealth through this venture,” and instead called Buhari to investigate the over $3billion already spent on the project.

This also raises the issue over lack of transparency and accountability in the NNPC, as only Prof. Jerry Gana, in 2013, while serving as chairman of the Northern Nigeria Economic Summit, disclosed that N27billion was spent on oil and gas exploration in the Lake Chad Basin at that time with additional $340million budgeted.

About 40 years after the Federal Government started the search for oil in the north, many Nigerians are convinced that its intensification by the President Buhari administration may be more politically motivated, and will end up enriching a few individuals from the region.

Nigeriaaa1960:
Bring it back home biko and start selling it #65