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Nairaland Forum / Nairaland / General / Politics / Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue (10045 Views)
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Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by koruji(m): 3:03am On Jan 21, 2012 |
When you own the oil rigs, the expertise and everything connected with bringing a God-given commodity out of the ground, and there are no consequences coming to you from any damages to the land, water and atmosphere you would expect almost half of the proceeds of the venture too. You are not the fool. The fools in this deal know ourself. http://dailytrust.com.ng/index.php?option=com_content&view=article&id=152807:foreign-firms-take-43-percent-of-nigerias-oil-revenue&catid=1:news&Itemid=2 |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by stayreal: 3:14am On Jan 21, 2012 |
Many Nigerians don't know this. That is why they want to keep Nigeria one because as long as you are busy fighting yourselves. They can rob you blind. The white man is made rich of of this Nigerian oil. Many white people in in America, UK, Netherlands, etc are milionaires and billionaires because of Nigeria. The white man licks the butt of Saudi Arabian princes because they control their own oil and they don't bow down to no white man. 1 Like |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by alexola20(m): 9:34am On Jan 21, 2012 |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by Seun(m): 9:37am On Jan 21, 2012 |
I don't understand the outrage. They do all the work & take less than 50%. How is this bad? 1 Like |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by jedisco(m): 9:39am On Jan 21, 2012 |
WHAT Who signed that agreement in the first place |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by ceejayluv(m): 9:48am On Jan 21, 2012 |
Whoever didn't know about Royalty payments before now is an unenlightened cretin! That's the problem with Nigerians, we no dey gree find facts, ! |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by JUO(m): 9:56am On Jan 21, 2012 |
thats is serious |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by ak47mann(m): 9:57am On Jan 21, 2012 |
The illiterate Gowon sold Nigeria after the war,who knows the deal he signed with his former allied after the war |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by 1virus(m): 10:01am On Jan 21, 2012 |
@jedisco. Is a signed agreement btwn nigeria and the west during the war under gowon. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by aurenflani: 10:03am On Jan 21, 2012 |
is dis d reason hugo chaves of venezuela nationalised d oil companies in his country and moved his country's gold reserve from d us? no wonder they are at logger head with this man, calling him all sorts of stupid name and demonising his govt. now what percentage is in d agreement btw d us govt & bp? nigeria d wonderland! 1 Like |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by Toks2008(m): 10:04am On Jan 21, 2012 |
This is Madness |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by smarttalks: 10:05am On Jan 21, 2012 |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by smarttalks: 10:06am On Jan 21, 2012 |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by Kobojunkie: 10:08am On Jan 21, 2012 |
1virus: That does not make sense at all. Did you bother reading what the article says at all? These companies, like someone says, do all the work. They drill, extract, and all, and only take 43%. What would you like for them to take? 1% If it was the case that Nigerian owned companies handled all of the same amount of work, would you also express this much outrage at the amount the company takes in for all the same work? |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by eastman11: 10:23am On Jan 21, 2012 |
This is why US and Britain always refer to Nigeria as very important country for them. Because the North does not believe in one Nigeria that is why they are looting the proceeds from Niger Delter in collaboration with the west and now that they are no longer in power they want to destroy Nigeria. Ngozi, Sanusi and Diezani who fill they know it all are there watching the Oil companies loot our resourcing using such a lopsided agreement without doing anything or advising the President properly, but they are quick to remove subsidy, God will punish all of them including their boss. Bastards. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by Rhino5dm: 10:30am On Jan 21, 2012 |
what do u mean by they do all the work?. Its obvious you are not an expart in this field. Seun: |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by jpphilips(m): 10:33am On Jan 21, 2012 |
I cannot but express my profound gratitude and solidarity to the NLC,TUC and other affiliate organizations. We in the oil and gas sectors are solidly behind you. Let me quickly introduce ourslves, we are a group of well meaning Nigerians in the oil and gas upstream sector who wish our voice to be heard in this battle to save Nigeria. While we negotiate with the government, these perspectives must be adressed. lets talk about this present day subsidy regime, the Cbn gov has already confessed he has evidence of round tripping , he said he paid subsidy on 15 fake vessels approved by customs. what did madueke do? nothing the reasons investors did not build refineries over the years was lack of cheap crude but the biggest reason is corruption how? licences were given to companies without the financial muscle to build refineries also part b of the license clearly states that these armed robbers have oil lifting license embedded in their refining license, tell me who will choose refining over lifting where he makes instant profit and inflated subsidy what did madueke do? nothing as usual do you know that NNPC does not have storage facilities for all those millions of products they are quoting and importing. how exactly does Nnpc wish to store 30million litres of pms? do you know that these fg goons went ahead to licence importers without storage facilities leading to the govt paying extra for storage on a product they are paying over 70 naira as subsidy can u beat this stup1dity and incompetence? what did iweala and madueke do? nothing, do you know that these leppers in Nnpc have no grading structure for imported pms low grade,mid grade and high grade all are pms same subsidy, same price even ethanol blends have subsidy paid on them, can you beat that? even abroad where the products come from have different prices. some are far cheaper than others which ordinarily should attract low subsidy what did madueke do? nothing. do you know that these bingos at Nnpc dont maintain their pipeline networks which ordinarily should link one depot to the other, they have to pay extra for tankers transporting these products all are subsidies. eventhough their foreign jv partners are maintaining over 1000 pipeline networks in Nigeria. what did madueke do? nothing. do you know that under madueke's watch demurrage is paid as subsidy to these importers . how cant they be reponsible for their import schedule? is it not commonsensical for madueke to prioritize the discharge of those vessels quickly in tank farms as not to attract demurrage for a product you are subsidizing? and they want us to tighten for a better future? which future ? can iweala,Sls and madueke plan for a sustainable future if given the task? dead failures. for every extra kobo you pay on pms you paid for madueke's incompetence. now they can see high expenditure but cant see how their incompetence is inflating the subsidy regime. Do u seriously think iweala will see it comming if it was true that economy will crash? Let us analyze the genere and politics of these issues There are more misnomers than facts surrounding this subsidy brouhaha. First, the Govt said the economy will collapse, ridiculous indeed secondly, the Govt said oil importers are a 'cabal', nearly fell off my seat. Comrades, there are no cabals, in 2009 the scarcity of petroleum products became intense and the Govt admitted that Nnpc through its subsidiary PPMC has failed Nigerians by their inability to meet up with the supply of pet. Products and that phenomenon gave rise to licensing of some people to 'assist' the Nnpc in doing their job for which they are paid for. Please don't forget that hitherto, Nnpc has been doing the importation and refining themselves before corruption eroded their common sense. These importers went abroad and came back with a price Nnpc is already aware of comprising of logistics, storage and administrative costs, these were quantified before they arrived at a price. The FG now fixed a price tag of 65naira on Pms and agreed to be reimbursing the importers the balance not oblivious of the fact that the landing cost is higher than the stipulated price To my greatest chagrin, the Jonathan’s administration woke up and termed them 'cabals' who are fleecing the nation. Assuming Ruben Abati goes abroad to buy a TM underwear for 1k and decides to sell it 1.5k adding purchase price plus logistics plus profit and the Govt tells him to sell at 900 naira, wont he ask for the 600naira balance? When the incompetent NNPC agrees to reimburse him, then he has become a cabal stealing from the GOvt? We are not docile, If Nnpc lived up to their responsibility, we won’t have need for the importers in the first place.There is no doubt that the subsidy regime is met with corrupt practices, is it not the responsibility of the govt to clamp down on those malfeasance? the Governor of central bank confessed during the town hall meeting that he paid subsidy to 15 fake vessels who connived with customs to falsify their papers. is this not fierce corruption? and we have a shameless commander in chief? by the way, how many naval officers patrol our waters on tax payers account? efcc,icpc etc The only solution that came to the minds of this disgruntled PDP administration is to remove subsidy into-to not minding its inflationary consequences. This is the si1liest approach any human being with brain if they have one can summon. Thirdly, Jonathan insulted the intelligence of Nigerians telling us that we don't benefit from this subsidy except for the importers and he had the unbridled temerity to be advertising it on NTA saying the rich are getting richer. This people are demons. When Ruben abiati's mother goes to the market to buy vegetable at a price, does he not know that the seller included cost of transportation to that price? So when the transporter buys PMS @ 65naira and fixes his price based on that, he says his mother did not benefit from the subsidy that guaranteed the price in the first place? In a generator driven economy like ours? It is either Ruben Abiati and his employers are drunks or they think that Nigerians are m0rons. I feel sorry for people that think that competition will crash the deregulated price erroneously juxtaposing it with GSM. Do you know that the price of crude being the raw material for refined pet. Products are sold at the same price world overl? If you agree to this, then, even if you deregulate and license 5million importers the product will still be expensive because crude itself is expensive. You will still need to subsidize it to 65naira, exactly why deregulation of diesel in part did not work.The only reason you have not bought diesel @ 200naira is because there are so many illegal refineries who bunker crude, settle JTF and refine diesel at a lower price. This people still pose a great threat to the importers who buy at a higher price that is why you get diesel @ 140naira elsewhere but in the delta i buy as low as 70naira. At this verge you will not over rule the fact that these unscrupulous elements contribute to the availability of diesel, if you are in doubt, anywhere you see cheap diesel, ask the dealer the source of his consignment If he is honest he will tell you the truth, when i was told, i took an hr 20mins boat ride to a remote village in the delta between Belema and Kola communities and i saw the local refinery myself. Conduct a chemical test on those cheap diesels if you are not convinced and you will realize a lot of additives are missing.Sounds incredible but those are the realities on ground.You now know why many importers in the delta hardly have diesel. I still feel sorry for those who think the Govt should build more refineries, that will not solve the problem either because there is no cheap crude to supply these refineries. Do you know that even the petroleum products from our present refineries at a disappointing capacity attract subsidy? that is what Sanusi is not telling Nigerians. This Sanusi's buisness model of increasing local price to attract investors is misleading. He should ask himself why so many buisnesses left the USA for Asia and Arrica between 1998 till 2008. The reason was because cost of doing buisness in America was high so there was need to tap into Africa's cheap land and asia's cheap labour. If you increase the pump price the spiral inflation will discourage investors, you pay high for land,labour, enegy etc. A brief insight in Nigeria's oil and gas model gives us a better outlook The oil production of Nigeria stands at 2.37 million barrels of crude daily. Nigeria get this crude in a JV (joint venture) with IOC's (international oil companies) and the Nigeria's cut stand btw 55% to 60% of the lot, if we go by 60% then, that gives a total of 1.4m barrels daily.If we average the crude price from 2009 till date, the price falls close to 100usd/bbl.In that case, Nigeria makes 140,000,000usd daily from this JV. Nigeria has a policy called DSO (domestic supply obligation) which mandates 250,000bbl/d of this crude to be refined and consumed locally,In monetary terms, the Nigerian govt is giving us 25,000,000usd worth of crude to refine. Our three refineries at optimum capacity utilizes about 450,000bbl/d which gives 45,000,000usd in monetary terms in other words, the price of raw material in this case, crude, accrued to our refineries comes at 45m usd per day , if you add refining cost and profit of 6usd per bbl,The total cost becomes 270,000,000usd per day.There is no way you can refine that crude at that price and sell it 65naira/ l and make profit. Meanwhile, once we mark out that 45m usd worth of crude for our refineries (assuming they are working at optimum capacity), the govt has already lost 45m usd from their 140m usd daily earnings (which will affect budget implementation) and after refining will still spend more money to subsidize it to 65naira/ l (you now understand why NNPC subsidizes the products from our refineries) With this analogy, you will agree with me that if all our refineries are working optimally, the govt will spend 3times our present day subsidy to bring the pump price down to 65naira/l . So, for those of you clamoring for refineries should be careful what you wish for because there is no cheap crude for you to refine. I have argued abinitio that the sales of other derivatives of crude will bring down the cost of most sort PMS,DPK etc but after doing some feasibility studies, i realized i was dead wrong. I further argued that to make cheaper crude available for our refineries, the Govt should reduce the price at which it is supplied unfortunately, the senate mandated the then GMD of Nnpc that the DSO must be sold at international crude price. This i believe was proposed for the following reasons: 1 the refineries are working below capacity so what the heck does Nnpc use the crude for? 2, there is a benchmark on crude price for budget implementation.With these reasons, any existing or yet to exist refinery in Nigeria will get crude at a high price and must need subsidy to sell at 65naira/ l, at this cross road, the then GMD of Nnpc decided that all crude should be exported and subsidy be paid on imported products. At this verge, i must reiterate here that competition amongst importers will only crash the profit margin but not cost price.Even if every Nigerian becomes an importer of pet. Prods, we can never change the fact that crude in the int l market is already expensive before thinking of refined prod. So we must need subsidy to make profit. Before this issue of subsidizing petroleum products can be addressed,You must have the following at the back of your minds: 1, Nigeria pegs a benchmark on crude prices to enable it implement budget. This stands at 75usd/bbl. And this crude is sort from the JV .2, if crude price exceed the benchmark above, Nigeria makes excess crude revenue (ECR) 3, conversely, if we make excess crude revenue, the price of subsidy on refined products shoot up.With the above analogy, One can argue that the ECR be used to subsidize imported petroleum products since both are a function of each other unfortunately in Nigeria, it comes with its own challenges. By law, the constitution clearly states that all revenue accrued to the FG be shared amongst the three tiers of Govt.This alone makes it illegal for the FG to keep the ECR to itself for whatever reason. This is where the wahala started, during GEJ's campaign, he astronomically increased workers salary without consulting the state Governors,most Governors have refused to pay on the grounds that they cannot afford it. On that grounds Taraba, jigawa and some other states have a genuine case.With the above development, the states started scrambling for funds and remembered the ECR and insisted it must be shared to enable them pay the new wage and develop infrastructures. you now understand why all state governors are for subsidy removal including the literally "one of us" comrade Adams oshiomole, because they know it will be shared just like the ECR The way forward: In the short run: All unions must ensure the FG, must consider these options, 1, identify and tackle the corruption and incompetence prevalent in the subsidy regime above. That will push down the cost of the subsidy in the first place.Like i said in April, no matter how sincere GEJ think his administration is, he cannot make any reasonable progress in the face of corruption, 2, the power projects must come upstream before removing subsidy, this will reduce the demand on pet. Products to a very great extent. 3, Nigeria must accommodate Gas export, port duties and other forms of revenue in their budget implementation policies. 4, Govt must never invest an extra kobo in our moribund refineries, by doing otherwise, the cost price of the refineries will rise to an extent that it will no longer be attractive to investors or will prolong their repayment plan.Thereby making it very capital intensive. 5, Instead of deceiving Nigerians with their cabal bullshit and deluding them that they don't benefit from this subsidy, the FG should channel that propaganda with intense lobbying to the senate,NLC and civil society organizations to stop the state governors from demanding for the ECR, this can be achieved by the FG asking the state to pay whatever increment they can afford for the workers that way the ECR will be used for subsidizing pet. Products. In the long run: Nigeria must seek local production capacity.It is no longer news that Nnpc and its subsidiaries have failed woefully in meeting the needs of the Nigerian people. Nnpc through its subsidiaries Npdc and Ngc are saddled with the responsibility of the above for oil and gas production respectively, but as i write, the current production of NPDC stands at a paltry 90,000bbl/ day which is a huge failure for an agency set up 23yrs ago, The IOC's has made us believe that it will cost less than 12usd to extract 1bbl of our oil. The Management of NPDC must be reshuffled and if possible experts brought in on contract basis to improve NPDC's production.These experts must be placed on targets appraised by milestones. in ogoni land for instance, Anglo dutch has a lot of abandoned production facilities and marginal wells and others scattered all over the country, these can be bought by NPDC with the money FG want to waste on refineries to improve production, If NPDC can extract oil at 12usd/bbl and make a little profit, with this cheap oil available, Nigeria will have no reason going to the JV. This cheap crude is what will attract investors to build refineries and create jobs against sanusi's pump price increase to attract investors and create another monster called INFLATION, A 250,000bbl/d refinery will cost a little above 5b usd, dangote alone can afford two of those only if NPDC can guarantee cheap oil. This is why no investor is coming to build refineries. A crude price of 18usd/bbl from NPDC will guarantee pump price of less than 22naira per litre of pms from these refineries.With this plan,By the end of this Administration, NPDC will have robust production capacity and the refineries will guarantee steady refined products. These refineries shouldn't be operated by the Govt for any reason.The FG will generate revenue from both ends, export of crude and export refined products and the production of NPDC must be increasing periodically. this is necessary because Nigeria as a member of OPEC has a limit to crude export but we can earn more revenue from petroleum products export. Once the above takes effect, there won’t be any need to be paying subsidy because pump price will be around 23naira/ l and inflation will reduce by 40‰. Now, how competent is Allison Madueke and iweala if they can’t figure this out? To think of removing subsidy at this stage where there is no electricity and high corruption rate will be tantamount to economic suicide. I cant believe iweala and sanusi are using trial and error approach to economic solutions please try the next country or preferably Haiti. What iweala forgot is that in the face of inflation, the cost of running Govt projects will be high, All Govt contractors will definitely come back for contract variations or Abandon those projects. As a sound economist, she should tell Nigerians the value of 1.3 trillion naira ( she intends to save on subsidy removal) in the face of 60% inflation and how many projects Nigerians will benefit from the subsidy removal.If you remove subsidy and the money disappears, then it is a NO NO for Nigerians. Now, let us analyze possible solutions to this economic quagmire. I have a deal for iweala. fight corruption and inefficiencies in the subsidy regime and bring it down to 300billion for this year. The management of Npdc must have a target of 150,000bbl/d by dec 2012. on january 2013 subsidy will go by 50% and by dec 2013 Npdc should guarantee 200,000bbl/d on 1st january 2014 subsidy must go 100%. with or without the refineries on ground, then if Nigerians are sacrificing, they will know it has a limit pending when refineries that will utilize the cheap oil on ground arrives. tell me what WE are sacrifising for today? eternal slavery? I and my generations cannot and will not sacrifice for Govt's incompetence. All unions should never accept partial deregulation, it is more dangerous than total deregulation because Nigeria hasn't a price regulatory agency who ordinarily should put the markets and commuters on check. Deregulation in the down stream sector is not same as telecoms, we need structures to support it which Nigeria have not got unlike the later. God bless you as you fight this battle for mankind Written by; concerned oil and gas activists |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by 989900: 10:36am On Jan 21, 2012 |
this is nothing new. . .it's the same with other oil producing states. . . .%tage though might defer a little. . of course it's Nigeria, expect some ppl receiving kick backs |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by gregg2: 10:37am On Jan 21, 2012 |
To add to the Finance Minister's clarrification: The 57% is futher shared among FG, states, Local Govts, Derivation to Oil producing states and Excess Crude Account. The FG's share is what forms the 4 trillion naira budgetted for year 2012. This clarrification is neccessary because one 'ignoramus' was misinforming protesters at Gani Fawenmi Park Ojota with Ajegunle Mathematics of how FG sells 2.5 million barrels of crude oil per day amounting to 16trillion naira every year but is proposing a budget of only 4trillion naira. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by dustydee: 10:39am On Jan 21, 2012 |
Seun:The resource does not belong to them. Tell your boss you deserve the greater share of the company's profits than him since you do all the job |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by jedisco(m): 10:39am On Jan 21, 2012 |
ceejayluv: 1. Its much better if you post without insults 2. Everybody knows about royalty payments if not none of them would be Here but its just the percentage thats worrisome 3. I think I prefer the method used in Iran where they do the whole work and sell the crude to the government at a fixed price so all the rise in oil price will be gain to the government only |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by logica(m): 10:44am On Jan 21, 2012 |
The Venezuelans already drew our attention to this (if I recall 90% accrues to them). That's why Venezuela is hated by the US, and why Venezuela can sell PMS at 15 cents/ gallon in their country. 1 Like |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by jedisco(m): 10:45am On Jan 21, 2012 |
@Seun and Kobo I think you people should also look at their agreement with other countries. That of Iran really interests me |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by ratiken(m): 10:45am On Jan 21, 2012 |
Until we have national oil producing companies at capacities that will give the IOCs good competition, we have no edge at the negotiation table. Your leaders are busy looting to think of such, I cry for Nigeria |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by Rhino5dm: 10:48am On Jan 21, 2012 |
@Topic I can confidently tell you that the figures is even higher than what is presented above. They take everything for free. No Nigerian can give the exact figure of the crude oil being exported daily.-FACT so, how do we arrive at this percentage, if we dont even know what is going out? Do we have central meter or crude accounting system that is free from corruption? Hell NO! I was with Exxon Mobil at Eket around 2007, believe you me, No one knows what is really going out of the country. The DPR and NNPC guys in charge of BOP(BERTH OPERATING PLARTFORM), who are supposedly in charge of taking records of what is going from the small offshore plartform, which crude oil lifting tankers operates from, are either in Lagos or Abuja chilling with chicks at the expense of the country. The crude accounting department at QIT(Qua Iboe Terminal) of exxon mobil in Akwa Ibom is heavily compromised. The naval officials that suppose to record the number of the barges coming in and out, are all in payroll of exxon mobil. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by sovpounds(m): 10:55am On Jan 21, 2012 |
Its weird that many Naijarians even those that classify themselves educated are not aware that we have Joint Venture agreements with the oil majors. The naija media too sometimes publishes news that shows they are ignorant. Naijarians read news stories and dont bother to think, they just swallow any news hook, line and sinker. We all know there is corruption in Naija, but you cant steal what you dont have. A newpaper once claimed that a former governor stole x billion, the amount was higher than the state's budget. How can i believe this story? 1 Like 1 Share |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by sheyguy: 10:56am On Jan 21, 2012 |
How can we even get outa this in the next 50 yrs when our profs are only theoretically sound and preserve knowledge to make themselves relevant, militants are given scholarship while our brilliant graduates roam the streets. What is the next step now? We really need to set a round table of re-negotiation immediately. . . Nothing less. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by 989900: 11:04am On Jan 21, 2012 |
PETRONAS, short for Petroliam Nasional Berhad,[1] is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. Petronas is ranked among Fortune Global 500's largest corporations in the world. Fortune ranks Petronas as the 95th largest company in the world in 2008 and 80th largest in 2009. It also ranks Petronas as the 13th most profitable company in the world and the most profitable in Asia.[2][3][4] Since its incorporation, Petronas has grown to be an integrated international oil and gas company with business interests in 35 countries. As of the end of March 2005, the Petronas Group comprised 103 wholly owned subsidiaries, 19 partly owned outfits and 57 associated companies. Together, these companies make the Petronas Group, which is involved in various oil and gas based activities. The Financial Times has identified Petronas as one of the "new seven sisters":[5] the most influential and mainly state-owned national oil and gas companies from countries outside the OECD. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment. The Petronas Twin Towers were officially opened on Malaysia's 42nd National Day, August 31, 1998 - in the Corporation's 24th Anniversary year. The government was determined to develop Malaysia's natural gas as well as its oil Shipping Company (MISC), of which it owned 61%. These were to take LNG exports out of Malaysia, save the cost of hiring foreign tankers, and expand the country's fleet under its own control—in contrast to cargo shipping, which was controlled by international conferences. Shell BV, the Royal Dutch/Shell subsidiary that was building the LNG plant off Sarawak with Japanese and Asian Development Bank aid, accepted production sharing with Petronas but baulked at sharing equity, transport management, or refining. Negotiations went on, pushing commencement further and further back, until 1977, when Petronas and the government, faced with the costs of maintaining the tankers between delivery and first use, surrendered management rights—leading to a repeal of part of the Petroleum Development Act—and settled for[b] Petronas's taking 60% of equity in the new company Malaysia LNG. The Sarawak state government took 5%, and the other 35% was divided equally between Shell BV and the Mitsubishi Corporation. Production of LNG in Sarawak at last began in 1983.[/b] Another new venture in 1990 was in ship-owning, since Petronas's existing arrangements with MISC and with Nigeria's state oil company would be inadequate to transport the additional exports of LNG due to start in 1994, under the contract with Saibu Gas. Petronas did not lose sight of the government's commitment to Malaysian self-reliance, and the company's second refinery at Malacca, completed in 1994, with a capacity of 100,000 barrels per day (16,000 m3/d), promoted the same policy. The fact that it was built in a joint venture with Samsung of Korea, the Chinese Petroleum Corporation of Taiwan, and Caltex of the United States did not negate the policy, for the subsidiary company Petronas Penapisan (Melaka) had a decisive 45% of equity while sharing the enormous costs of and gaining advanced technology for the project. More to the point, a side effect of the refinery's completion was that Petronas was able to refine all of the crude oil it produced, instead of being partially dependent on refining facilities in Singapore. During the mid- to late 1990s, international exploration, development, and production remained key components in Petronas's strategy along with diversification. A key discovery was made in the Ruby field in Vietnam in 1994. That year, the firm also saw its first overseas production from the Dai Hung field in Vietnam and established its first retail station outside of Malaysia in Cambodia. In 1995, a subsidiary was created to import, store, and distribute liquefied petroleum gas (LPG). In addition, the company's polyethylene plant in Kerteh began operations. Petronas marked a significant milestone during this time period—two of its subsidiaries, Petronas Dagangan Bhd and Petronas Gas Bhd, went public on the Kuala Lumpur Stock Exchange. In 1996, Petronas entered the aromatics market by way of a joint venture that created Aromatics Malaysia Sdn Bhd. It also formed a contract with China National Offshore Oil Corporation and Chevron Overseas Petroleum Ltd. to begin exploration of block 02/31 of the Liaodong Bay area in China. While the Asian economy as a whole suffered from an economic crisis during 1997 and 1998, Malaysia was quick to bounce back due to successful government reforms. From its new headquarters in the Petronas Twin Towers, the state-owned concern continued its development in the oil and gas industry. Petronas entered the new century determined to expand its international efforts. The company forged deals for two new exploration plots in Pakistan and began construction on the Chad-Cameroon Integrated Oil Development and Pipeline Project. By 2002, Petronas had signed seven new PSCs and secured stakes in eight exploration blocks in eight countries, including Gabon, Cameroon, Niger, Egypt, Yemen, Indonesia, and Vietnam. The firm also made considerable progress in its petrochemicals strategy, opening new gas-based petrochemical facilities in Kerteh and Gebeng[/b] [b]This is how you proactively run an oil company in a "sincere" country. Though Malaysia with a population of 28m produces just 693,000barrels/day (Nigeria 2.4m barrels/day), the country consumes 536,000barrels/day(Nigeria consumes 280,000barrels/day) and Petronas (their equivalent of our NNPC) rakes in US$ 20 billion/annum (N3.2trillion) on the average as net profit. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by Rhino5dm: 11:05am On Jan 21, 2012 |
Another stone head on the loose. I would have put a bullet hole through your head, in real life. JVO, PSC, OML. . .blah blah blah. Keep your your tiny brain occupy with lot of trash. sovpounds: |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by 1virus(m): 11:30am On Jan 21, 2012 |
That does not make sense at all. Did you bother reading what the article says at all? You are the 1 ho is not making sense at all, and u are not geting the msg. What d minister is saying is more than the %tage. Your country is the only opec member ho have little or no access to her raw materia(crude) directly all in the name of a Signed Agreement. Make ur research and quot me wrong. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by jpphilips(m): 11:33am On Jan 21, 2012 |
@ rhino that is not the point, I said it sometime ago that the downstream sector is a saint compared to upstream and your ascertion above was one of the points I raised. what we talking about here is that officially Nigeria signed a death warrant agreement with these ioc's before they even agreed to come and invest here. nobody is disputing malfeaseance but we are arguing on the official percentage, in my own opinion I think the ioc's are generous to a country like Nigeria. dont mind beaf and his niger delta cohorts who think that because they own the oil therefore everybody should sink. the question I have for he likes of beaf is: can you bring it out? out of the 517 major operations in oil and gas, nigeria has no single tech to support any and we make noise. when gen buhari as NNPC boss was saying that our oil is useless if we dont own it all, guess most of us didnt understand what he was saying. do you know that for the past 10yrs or so, the fedral govt has never contriibuted their 57% of exploratory funding they choose to pay the iocs with oil and that is where rhinos fraud is perpetrated with impunity. in other words the iocs with their tech identify the oil reservoirs, the iocs came with the liquid cash to fund exploratory oil buisnesses, they own the patent technology that bring out the oil, they operate the oil facilities based on their own standard to guarantee efficient oil supply, while we seat like beaf in abuja hanging agbada left and right decieving ane intimidating nigerians, supplying the serious ioc's with jtf. did i forget those incompetent corruption goose called NNPC that has failed beyond reach. sounds like peeps dont know that NPDC a subsidiary of NNPC is tasked for 23yrs to give Nigerians oil solely owned by us, guess what! those incompetent goons are still at 90,000 barells per day after 23yrs of meritorious service, 23yrs of celebrating corruption 23yrs of grand incompetence, 23yrs of wasting billions paying retirees higher than active staff. Nigeria is very lucky to get 57%. |
Re: Foreign Firms Take 43 Percent Of Nigeria’s Oil Revenue by unclenna(m): 11:39am On Jan 21, 2012 |
@jp philip, you just made me to login after reading your long easy. Thanks for the enlightenment sha. I want to point out something to you. The 250,000 b/d mandated by the fg to be consumed locally is not charged. Is part of the JV agreement. Hw can you charge urself for what you own is not true. The 250,000b/d allocated 4 local consumption is drilled by d oil cow and send to NNPC at no cost. So you see if our refineries are working the cost that will be incurred will be only production cost. The transportation cost will be wiped out because the product will be send to depots through pipelines. Nigeria should but their refineries to work. Also, if what you said is true that nnpc decided to sell the 250,000b/d then nnpc should use it to pay 4 d subsidy. Thanks. |
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