Rebuke:
Make una no worry na. Eyes go clear very soon...shee na only oil money una sabi chop for this country eh?

Nigeria has other resources we can tap into but oil money has blinded the eyes of our leaders. Attention is only on oil not thinking of diversification.

Sorry to say this, you made a mistake. top government officials are not suffering and they will not suffer. Someone who works in one of the Federal parastatel told me that salary is not important like allowances, he said that some ppl who receives hundreds of thousands as basic salary also receives millions every month as allowances. Our senators, ministers, permeant secretaries, directors of MDGs are not suffering and will not lack cos they have already appropriated astronomical allowances which the masses don't know but will only decieve Nigerians with there basic salaries. The masses are the ones suffering and will continue to suffer with the system we operate here in Nigeria, thank you.

Fernandeswagger:


I'm telling you.

The same PDP that increased fuel price from N87 to N145.

Omase o!

This one doesn't know difference between oil price n fuel price.

FRIEND: Ol guy Wetin be the matter nau,why they area scatter like this.
ME: my guy,nor be small thing,NNPC say the cost of oil production per barrel Na 21$ o.
FRIEND:Ehen,and so what,nor be so e be everywhere,na normal nau.
ME:who tell you,you be mugu o,Russia own Na 2$,even saudi Arabia own Na 3$,see d difference nau.
FRIEND:whaaaaaaaaat, This country Na scam o,blaze my guy,na to run from Nigeria now o,NIGERIA Na big scam o.

ednut1:
Saudi oil is mostly on open desert land ours is deep inside swamps and ocean. Different cost. Saudis version of nnpc also controls most of the oil unlike here. Saudi fields are all computerized and every barrell is accounted for in Nigeria here it is not monitored. The taxes here are killing. Many of the fields here were dug in the 70s and are depreciating. So you cant compare. Its like comparing a man who farms near the water and another who farms in the desert. Their costs are not same

Thanks for explaining to them! The Senate people who couldn't understand simple explanation are the idiots in all of this.

I work in the oil and gas sector. Let me try and also explain:

Security is indeed a big challenge. All tankers and rig, materials movement from logistics bases to the production facilities need to be escorted with security house boats. Even movement by land of oil staff to oil field locations have to be with security escort front and back, with mopol/soldiers. Imagine the huge cost of this per year. Are you telling me that in Saudi or Norway or Russia, they have the incur such costs? Nigeria is the kidnap, sea piracy capital of the world and people are suprised about the extar cost of security.

A number of our oil wells are quite old with depreciating production, which are expensive to keep going. Most of the new oil of the past 2 decades have been from deep offshore which is expensive.

Our production is mainly in swampy terrain with attendant difficulty in accessing it. Swamp rig costs more than land rig. This adds to costs. Middle East countries on the other hand drill for oil on firm land.

NNPC/NAPIMS themselves are a big problem. Because they pay their Cash call late, payments to vendors are always delayed. Because of this, vendors add a cash 'premium' to their cost to compensate for late payments, which drives up cost.

NNPC/NAPIMS themselves are another problem, because many of their top guys front for Nigerian companies that cannot do the job. The bid low to get the job, the frustrate the IOC's with non performance. Then they come with large variation to milk the IOC's. Instead of NAPIMS to weild the big hammer against them, they support them because the NAPIMS guy fronting for the contractor will get a cut. (Think PID).

Because Nigeria is so undeveloped and it's people so poor, they see oil company as their only source for wealth. Therefore the burden on oil companies to provide water, roads, bridges, medical care, electricity etc for communities is much higher than other countries. There is also bush entry, freedom to operate etc. Do you think they pay all these in Saudi, UAE, Norway and Russia

Also NDDC contribution is 3% of any oil company budget. So if Chevron has a budget of $1.5bln for 2020, then NDDC contribution is $45mln is expected to be paid to NDDC. This impacts opex of oil companies. Does any major oil producing country have NDDC

There are still more reasons I can give, but I rest my case!!!!!!!!!!!!!!

ednut1:
yes it does. The last one i calculated for my last client in Nigeria was 19 usd. When you add royalty, gas flaring penalties, maintenance costs, community settlements, pipeline costs and storage, expatriates, materials etc. Its over 20 dols per barrell. The company lost over a million barrels in 2019 to theft

Is it the profits per barrel that is now shared between the IOCs and the NNPC or how does it work ?

You also mentioned an 85% tax, am a bit puzzled. Kindly enlighten me in this regards.

Thanks

COMPAQ:


Thanks for explaining to them! The Senate people who couldn't understand simple explanation are the idiots in all of this.

I work in the oil and gas sector. Let me try and also explain:

Security is indeed a big challenge. All tankers and rig, materials movement from logistics bases to the production facilities need to be escorted with security house boats. Even movement by land of oil staff to oil field locations have to be with security escort front and back, with mopol/soldiers. Imagine the huge cost of this per year. Are you telling me that in Saudi or Norway or Russia, they have the incur such costs? Nigeria is the kidnap, sea piracy capital of the world and people are suprised about the extar cost of security.

A number of our oil wells are quite old with depreciating production, which are expensive to keep going. Most of the new oil of the past 2 decades have been from deep offshore which is expensive.

Our production is mainly in swampy terrain with attendant difficulty in accessing it. Swamp rig costs more than land rig. This adds to costs. Middle East countries on the other hand drill for oil on firm land.

NNPC/NAPIMS themselves are a big problem. Because they pay their Cash call late, payments to vendors are always delayed. Because of this, vendors add a cash 'premium' to their cost to compensate for late payments, which drives up cost.

NNPC/NAPIMS themselves are another problem, because many of their top guys front for Nigerian companies that cannot do the job. The bid low to get the job, the frustrate the IOC's with non performance. Then they come with large variation to milk the IOC's. Instead of NAPIMS to weild the big hammer against them, they support them because the NAPIMS guy fronting for the contractor will get a cut. (Think PID).

Because Nigeria is so undeveloped and it's people so poor, they see oil company as their only source for wealth. Therefore the burden on oil companies to provide water, roads, bridges, medical care, electricity etc for communities is much higher than other countries. There is also bush entry, freedom to operate etc. Do you think they pay all these in Saudi, UAE, Norway and Russia

Also NDDC contribution is 3% of any oil company budget. So if Chevron has a budget of $1.5bln for 2020, then NDDC contribution is $45mln is expected to be paid to NDDC. This impacts opex of oil companies. Does any major oil producing country have NDDC

There are still more reasons I can give, but I rest my case!!!!!!!!!!!!!!

Wow, you indeed work in the industry. But I don't fully understand the NAPIMS and the bid part. Can you elucidate further ?

[b][/b]

EmekaMD:
Saudi insisted on developing their indigenous oil production company Aramco.
What is the use of NNPC to Nigeria ?

They cornive with shell and Chevron to be stealing our oil.

We also have ours , Nigeria petroleum development company. Our problem is corruption . I can tell u autoratatively that Nigeria indegious contractor in collaboration with nnpc officials are syphoning Nigeria money. For example the cost of procuring Xmas tree was multiple of price in those country. Other equipment price also inflated

chapwiz:
The process of drilling oil in Saudi Arabia is more sophisticated than in Nigeria yet production cost is far cheaper than same Nigeria...NNPC is the headquarter of corruption in Nigeria some NNPC staff are far richer than senators, Rep. Members and some govs.

What process in Saudi is more sophisticated?? Saudi oil is shallow and on land. You could almost drill with a water borehole machine and hit oil.

Nigeria is swamp and offshore. More than 50% of Nigeria current oil output is from offshore where you are drilling at depths of 7,000- 13,000 feet.

What are you saying!?

How we want take settle this mata now?

COMPAQ:


Thanks for explaining to them! The Senate people who couldn't understand simple explanation are the idiots in all of this.

I work in the oil and gas sector. Let me try and also explain:

Security is indeed a big challenge. All tankers and rig, materials movement from logistics bases to the production facilities need to be escorted with security house boats. Even movement by land of oil staff to oil field locations have to be with security escort front and back, with mopol/soldiers. Imagine the huge cost of this per year. Are you telling me that in Saudi or Norway or Russia, they have the incur such costs? Nigeria is the kidnap, sea piracy capital of the world and people are suprised about the extar cost of security.

A number of our oil wells are quite old with depreciating production, which are expensive to keep going. Most of the new oil of the past 2 decades have been from deep offshore which is expensive.

Our production is mainly in swampy terrain with attendant difficulty in accessing it. Swamp rig costs more than land rig. This adds to costs. Middle East countries on the other hand drill for oil on firm land.

NNPC/NAPIMS themselves are a big problem. Because they pay their Cash call late, payments to vendors are always delayed. Because of this, vendors add a cash 'premium' to their cost to compensate for late payments, which drives up cost.

NNPC/NAPIMS themselves are another problem, because many of their top guys front for Nigerian companies that cannot do the job. The bid low to get the job, the frustrate the IOC's with non performance. Then they come with large variation to milk the IOC's. Instead of NAPIMS to weild the big hammer against them, they support them because the NAPIMS guy fronting for the contractor will get a cut. (Think PID).

Because Nigeria is so undeveloped and it's people so poor, they see oil company as their only source for wealth. Therefore the burden on oil companies to provide water, roads, bridges, medical care, electricity etc for communities is much higher than other countries. There is also bush entry, freedom to operate etc. Do you think they pay all these in Saudi, UAE, Norway and Russia

Also NDDC contribution is 3% of any oil company budget. So if Chevron has a budget of $1.5bln for 2020, then NDDC contribution is $45mln is expected to be paid to NDDC. This impacts opex of oil companies. Does any major oil producing country have NDDC

There are still more reasons I can give, but I rest my case!!!!!!!!!!!!!!

100% i once went for a stock count on an fpso na Nigerian navy and ex us marines be security there. Nigeria is just a zoo abeg

Mykel51:


Is it the profits per barrel that is now shared between the IOCs and the NNPC or how does it work ?

You also mentioned an 85% tax, am a bit puzzled. Kindly enlighten me in this regards.

Thanks

nnpc and subsidiaries has 50% to 55% stake of all oil fields in Nigeria. They take share of the oil at that ratio. The 45% of the companies they pay royalties, gas flare, nddc level and all manners of tax. Depending on the jv agreement some are 85% tax on profit some 65%.

security and power

The shithole is a broad daylight scam!

Only a red revolt can salvage it!

so how much be your annual salary?
i hear they pay nnpc staffs millions every month.

COMPAQ:


Thanks for explaining to them! The Senate people who couldn't understand simple explanation are the idiots in all of this.

I work in the oil and gas sector. Let me try and also explain:

Security is indeed a big challenge. All tankers and rig, materials movement from logistics bases to the production facilities need to be escorted with security house boats. Even movement by land of oil staff to oil field locations have to be with security escort front and back, with mopol/soldiers. Imagine the huge cost of this per year. Are you telling me that in Saudi or Norway or Russia, they have the incur such costs? Nigeria is the kidnap, sea piracy capital of the world and people are suprised about the extar cost of security.

A number of our oil wells are quite old with depreciating production, which are expensive to keep going. Most of the new oil of the past 2 decades have been from deep offshore which is expensive.

Our production is mainly in swampy terrain with attendant difficulty in accessing it. Swamp rig costs more than land rig. This adds to costs. Middle East countries on the other hand drill for oil on firm land.

NNPC/NAPIMS themselves are a big problem. Because they pay their Cash call late, payments to vendors are always delayed. Because of this, vendors add a cash 'premium' to their cost to compensate for late payments, which drives up cost.

NNPC/NAPIMS themselves are another problem, because many of their top guys front for Nigerian companies that cannot do the job. The bid low to get the job, the frustrate the IOC's with non performance. Then they come with large variation to milk the IOC's. Instead of NAPIMS to weild the big hammer against them, they support them because the NAPIMS guy fronting for the contractor will get a cut. (Think PID).

Because Nigeria is so undeveloped and it's people so poor, they see oil company as their only source for wealth. Therefore the burden on oil companies to provide water, roads, bridges, medical care, electricity etc for communities is much higher than other countries. There is also bush entry, freedom to operate etc. Do you think they pay all these in Saudi, UAE, Norway and Russia

Also NDDC contribution is 3% of any oil company budget. So if Chevron has a budget of $1.5bln for 2020, then NDDC contribution is $45mln is expected to be paid to NDDC. This impacts opex of oil companies. Does any major oil producing country have NDDC

There are still more reasons I can give, but I rest my case!!!!!!!!!!!!!!

No surprises here. Two words explain this:

Corruption and incompetence.

You saturate NNPC with your incompetent, entitled northern ilk and expect to be as competitive as Russia or Saudi?

Please get real already!

Okoroawusa:

Omase o!

This one doesn't know difference between oil price n fuel price.

Yes o.

You tell me the difference.

Iwang ke ado

This corrupt officials are running away from the truth. Saudi Aramco, Kuwait oil company and ADNOC are national oil companies like NNPC but they own their wells and develop their fields. Corrupt NNPC is a moribund cash cow that depends on foreign companies like shell and co to own and develop Nigeria oil fields and pay stipends in d name of joint venture. Our mumu never start.

Courtesy of Barrons

Oil Is Rising Again. Here's What That Means for U.S. Producers.

Avi Salzman
•
Oil prices rose on Tuesday as OPEC and its allies are considering extending production cuts for at least another month before they start to taper off.

OPEC+, the larger group of countries in the alliance, has reduced production by more than 10 million barrels a day since the start of May. The overall group agreed to a 9.7-million barrel reduction in April and Saudi Arabia later cut by an additional 1 million barrels. Total global production today is between 80 million and 90 million barrels a day.

Brent crude futures, the global benchmark, rose 1.7% to $38.96 on Tuesday. West Texas Intermediate crude futures were up 1.3% at $35.90. Shares of Exxon Mobil (XOM) were up 2.2% to $47.28.

OPEC's coordinated reduction has been key to rebalancing the oil market. Supply is no longer outpacing demand at the scale it was a month ago, and some analysts are even forecasting a shortfall in the third quarter. The rebound from coronavirus lockdowns has been more swift than many had expected. People are using more gasoline and more commercial planes are taking to the skies, increasing the use of jet fuel.

U.S. producers have also cut back on production. Few of them can make money at current prices, buts as prices creep closer to $40, some may resume production. Parsley (PE), a Texas producer, said in a presentation that it expects to restore the "vast majority of curtailments in early June."

OPEC+ countries will have to consider whether to keep their cuts in place if U.S. companies begin to restore production, because such a scenario would result in the U.S. taking market share. OPEC members are conflicted about that, but will likely find a compromise this week, according to analysts.

"While the Saudis reportedly support the former position and the Russians the latter, we do not believe there will be repeat of the March meltdown and we think they will seek to split the difference by agreeing to a 1- to 3-month extension," RBC Capital Markets analyst Helima Croft wrote.

For Saudi Arabia, oil policy is also closely linked to political policy, and Croft thinks political considerations will compel the kingdom to keep production low so prices rebound.

"We also suspect that President Trump's willingness to dispense with congressional concerns and push forward with the sale of nearly $478 million in precision guided missiles to Saudi Arabia (and to allow manufacture of high-tech bomb parts in the country) is not entirely disconnected from the Kingdom's helpfulness on oil policy," she wrote.

Oil prices are nearing more-normalized levels after trading in the $20 range for weeks. The rebound shows that investors are convinced the sky is no longer falling. But for prices to rise more, there will need to be better news on the demand side -- which could depend on more positive news about Covid-19.

"In order for WTI to break out higher, the oil market will need to find balance, or the demand outlook needs to find some major breakthroughs in finding a treatment/vaccine for Covid-19 and for China and the U.S. to play nice," analyst Edward Moya at currency broker Oanda wrote.

Write to Avi Salzman at avi.salzman@barrons.com

© 2020 Dow Jones & Company, Inc.

https://www.barrons.com/articles/oil-price-west-texas-brent-producers-opec-supply-covid-19-51591110821?refsec=oil



The supply of crude oil is no longer outpacing demand at the scale it was a month ago.
Photograph by Patrick T. Fallon/Bloomberg

I owe you no explanation.

COMPAQ:



Please explain how petrol is supposed to be N50!?

They should ask the Minister for petroleum for better explanation.

I'm very sorry for anyone still hoping in the country.
FYI, we found ourselves in an animal kingdom where the stronger kill and destroy the weaker and nothing happens.
I regret raising my family in this asshole.
The NAS members are just ranting,
They all the same.
You will never hear about this shit again once they receive thier own part of the loot .
MARK MY WORDS.

fairheart:
I owe you no explanation.

Because you don't really have any

If Dangote can't produce at that same margin, $3- $4 then I don't see how he would breakeven. Except he receives some monopolistic policy by the government like ban on importation of refined product.

Private indigenous companies can do it. Government should play the role of oversight. Take for example, SpaceX cost Elun Musk $2B while the same project would have cost the NASA $20B.

Lol

ednut1:
no be every thing person go talk online na

uhmmmm

and dem don reduce oil price to 121.5 Naira


Yuan (RMB) for sale @ 62 Naira/¥


i buy and ship from China (1688),USA (Ebay,Alibaba)

@ 67naira/yuan
shipping - 9.5dollar/kg
5% procurement fee


i buy All type of Gift cards and Bitcoins


whatsapp - 07081997275

let them invite the minister of petroleum.

COMPAQ:


Thanks for explaining to them! The Senate people who couldn't understand simple explanation are the idiots in all of this.

I work in the oil and gas sector. Let me try and also explain:

Security is indeed a big challenge. All tankers and rig, materials movement from logistics bases to the production facilities need to be escorted with security house boats. Even movement by land of oil staff to oil field locations have to be with security escort front and back, with mopol/soldiers. Imagine the huge cost of this per year. Are you telling me that in Saudi or Norway or Russia, they have the incur such costs? Nigeria is the kidnap, sea piracy capital of the world and people are suprised about the extar cost of security.

A number of our oil wells are quite old with depreciating production, which are expensive to keep going. Most of the new oil of the past 2 decades have been from deep offshore which is expensive.

Our production is mainly in swampy terrain with attendant difficulty in accessing it. Swamp rig costs more than land rig. This adds to costs. Middle East countries on the other hand drill for oil on firm land.

NNPC/NAPIMS themselves are a big problem. Because they pay their Cash call late, payments to vendors are always delayed. Because of this, vendors add a cash 'premium' to their cost to compensate for late payments, which drives up cost.

NNPC/NAPIMS themselves are another problem, because many of their top guys front for Nigerian companies that cannot do the job. The bid low to get the job, the frustrate the IOC's with non performance. Then they come with large variation to milk the IOC's. Instead of NAPIMS to weild the big hammer against them, they support them because the NAPIMS guy fronting for the contractor will get a cut. (Think PID).

Because Nigeria is so undeveloped and it's people so poor, they see oil company as their only source for wealth. Therefore the burden on oil companies to provide water, roads, bridges, medical care, electricity etc for communities is much higher than other countries. There is also bush entry, freedom to operate etc. Do you think they pay all these in Saudi, UAE, Norway and Russia

Also NDDC contribution is 3% of any oil company budget. So if Chevron has a budget of $1.5bln for 2020, then NDDC contribution is $45mln is expected to be paid to NDDC. This impacts opex of oil companies. Does any major oil producing country have NDDC

There are still more reasons I can give, but I rest my case!!!!!!!!!!!!!!

Hmmmm

where are the lazy youth that were protesting in lagos? here is a job for them, protest PROTEST

apache22b:
This Government of Buhari is so dumb and i am ecstatically delighted and disproportionately flabbergasted with enormous gratification and appreciation for the dispensation of such a tendering and mesmerizing information in which the prestidigitation of the concurrent and subsequent matter is thoroughly demonstrated through the innuances alluding to literal and metaphorical context. It is highly imperative to note that, such is the significance of the aforementioned, distortion in any shape or form will result in catastrophic ramifications to which will be the outcome of epic proportions. I thank you for your unequivocal.

bros abeg na,some of us never reach dis level yet...

I wish they can deliberate the cost of maintaining two legislative houses with this seriousness and openness too. They should benchmark 3rd world countries like ours too.

It's 21 in naija cos of security, power, bribes, inflated figures etc

Lies all day long. The NOCs involved too

COMPAQ:


What process in Saudi is more sophisticated?? Saudi oil is shallow and on land. You could almost drill with a water borehole machine and hit oil.

Nigeria is swamp and offshore. More than 50% of Nigeria current oil output is from offshore where you are drilling at depths of 7,000- 13,000 feet.

What are you saying!?

Bros so in your mind which will be more expensive?