Anxiety as India, Nigeria’s new biggest consumer, discovers oil

India, Nigeria’s new biggest oil importer and consumer, said at the weekend it has discovered oil at the North Atharamura-1 well in Tripura Block, raising anxiety on the future of Nigeria’s crude oil sale and revenue.

Nigeria, Africa’s biggest crude exporter depends largely on proceeds from crude to service over 85 per cent of its budget.

The country turned to India after the United States, which hitherto imported over one million barrels of crude, dropped its oil import’s volume due to discovery of shale oil in commercial quantity.

U.S Crude import from Nigeria, penultimate week, dropped to the lowest in 15 years, according to data released by the Organisation of Petroleum Exporting Countries (OPEC).

Jubilant Energy NV, which spear-headed the Indian exploration said it has had submitted the notice of discovery to the Indian Government.

“Subsequent to the successful conventional testing in the Lower Bhuban formation in the North Atharamura-1 well in Tripura Block AA-ONN-2002/1, a Notice of Discovery has been submitted to the Management Committee of the Block and Government of India, as required by the Production Sharing Contract,” the company said.

North Atharamura-1 is the second exploratory well of the two well Phase-II minimum work program for the Block. The well was spud on 12 Feb 2013 and reached a Measured Depth (MD) of 11,155 feet (3,400 meters) May 17.

This development, Daily Independent gathered at the weekend has however raised concern in the government circle and at the Nigerian National Petroleum Corporation (NNPC) over the future of Nigeria’s crude exportation and revenue.

A management staff of the NNPC who craved anonymity because, he was not authorised to speak to the press told Daily Independent in a telephone chat the news of oil discovery was received with serious concern.

“Although crude sale is done through agreement, which covers some months and, at times years, you should not expect us at the NNPC or expect them at the Presidency to rejoice over the news of Indian oil discovery.

“It should sincerely make us to think outside the box and de-monopolise the crude oil influence on our economy. This, as people in government also know, should be done fast by developing the non-oil sector,” he said.

eGuerrilla: If there ever was a case for developing an increased sense of urgency towards economic diversification", this is it.

Abagworo: Still boils down to what I've always said.

1) Oga Jonathan please develop Niger Delta with your remaining 2 years and stop wasting all the money on retaining power.

2) Grant the States economic autonomy so that dependence on oil will reduce as States will fend for themselves. The offshore goes to FG so your share remains.

3) Invest more on Agriculture and Agricultural/biotechnology courses in our higher institutions. Make Agriculture the most attractive employment for youths.

4) Allow our refineries function so that we can use the oil ourselves if they refuse to buy.

5) Encourage the Aba shoes and allied products because that could be our next highest foreign exchange earner. Rebuild the city and create a condusive industrial area with access to standard machinery.

6) The "Kano Pyramids" and Western Cocoa can be revived if my point 3 (give priority to Agriculture) is well applied. Its possible if Obasanjo could do it with cassava.

Abagworo: Still boils down to what I've always said.

1) Oga Jonathan please develop Niger Delta with your remaining 2 years and stop wasting all the money on retaining power.

2) Grant the States economic autonomy so that dependence on oil will reduce as States will fend for themselves. The offshore goes to FG so your share remains.

3) Invest more on Agriculture and Agricultural/biotechnology courses in our higher institutions. Make Agriculture the most attractive employment for youths.

4) Allow our refineries function so that we can use the oil ourselves if they refuse to buy.

5) Encourage the Aba shoes and allied products because that could be our next highest foreign exchange earner. Rebuild the city and create a condusive industrial area with access to standard machinery.

6) The "Kano Pyramids" and Western Cocoa can be revived if my point 3 (give priority to Agriculture) is well applied. Its possible if Obasanjo could do it with cassava.

gbanikiti: Once again you have spoken the truth! it's high time our leaders looked elsewhere for alternative source of revenue than depending solely on oil.

...India's prized $108 billion information technology (IT) services sector is on a "knife edge" in the face of a looming vote on the U.S. immigration reform bill, which threatens the very business model the industry thrives on, says Nomura...

sheyie2007:
Oil contributes just 14% to our GDP bro... So, we don't entirely depend on it
http://en.m.wikipedia.org/wiki/Economy_of_Nigeria

agriculture: 40%; services: 30%; manufacturing: 15%; oil: 14% (2012 est.)

eGuerrilla:

We do for 95% of our foreign earnings.

eGuerrilla: @Abagworo, given our demonstrative flair for all things related to yahoo!, I see no reason why Information Technology should not be added to your list. India's success at attracting offshore business, for instance, means it is currently raking in $108 billion per annum from its IT sector alone.



Source: http://www.cnbc.com/id/100763808

sheyie2007: Pls elaborate

Agriculture - products
cocoa, peanuts, cotton, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yams, rubber; cattle, sheep, goats, pigs; timber; fish

Industries
crude oil, coal, tin, columbite; rubber products, wood; hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel

Exports - commodities
petroleum and petroleum products 95%, cocoa, rubber

Exports - partners
US 29.1%, India 11.6%, Brazil 7.8%, Spain 7.1%, France 5%, Netherlands 4.3% (2011)

Abagworo:

You are very right but I insist Nigeria needs to feed itself. We need to treat farmers as we treat Doctors and Lawyers because there is no health and law without food.

For the person saying I should leave Obasanjo out of it, I hope you are not trying to deny the fact that the Cassava revolution happened during Obasanjo era. Today he is retired to his farm just like he did when he retired from the Army. That's leading by example.

Abagworo: Still boils down to what I've always said.

1) Oga Jonathan please develop Niger Delta with your remaining 2 years and stop wasting all the money on retaining power.

2) Grant the States economic autonomy so that dependence on oil will reduce as States will fend for themselves. The offshore goes to FG so your share remains.

3) Invest more on Agriculture and Agricultural/biotechnology courses in our higher institutions. Make Agriculture the most attractive employment for youths.

4) Allow our refineries function so that we can use the oil ourselves if they refuse to buy.

5) Encourage the Aba shoes and allied products because that could be our next highest foreign exchange earner. Rebuild the city and create a condusive industrial area with access to standard machinery.

6) The "Kano Pyramids" and Western Cocoa can be revived if my point 3 (give priority to Agriculture) is well applied. Its possible if Obasanjo could do it with cassava.

Demdem: About Time. To Hell with the oil sef. Let miserable Asari, Tompolo, Boyloaf, and their kind get drown with it. I desire that the price crash to like $1.07 per barrel. it has brought more sorrow than good

berem: hmmm.... where the hell have you been?

Demdem:

Been busy for sometime now. Infact, am currently inside the creeks of Bayelsa as i am typing this. Come see "sufferment" from people's faces. We have much more potentials in this country than the miserable oil itself.

Demdem:

Been busy for sometime now. Infact, am currently inside the creeks of Bayelsa as i am typing this. Come see "sufferment" from people's faces. Shame on Alams, Retardeen, syvia. We have much more potentials in this country than the miserable oil.

olabukola: Hope its fish you are catching inside the creek since you pray for the crash of crude price.

what i do is none of ur business. Face topic. besides nothing is wrong in Fishing Isnt that legitimate than carrying arms which ur govt seems to encourage?

ibrahimdoc: If oil dries up, Ijaw lazy people will be a staunch proponent of One Nigeria.....By that time, asari tokubo will come out and say we are all brothers, from north, west, east and south....Greedy set of people.