socialmediaman:


It's as if your lips are stuttering trying to comprehend and find an explanation for the whole thing. You know what going through intermediaries mean, don't you? It means paying consultation fees on deals you could do directly. I'm not finding her guilty on this one though, I'd like to see her own explanation... Though we both know I don't think she's innocent.

IsraeliAIRFORCE:


Are you in Sales and marketing? Have you spent sleepless nights to achieve a target?

Crude Oil market goes beyond buying and selling.

It also involves high level politics and so many large multinational corporations are also involved in lobbing for commission.

We need comprehensive details beyond politics to ascertain what informed the choice of an agent over direct dealings.

IzonOwei:
you didnt have to abuse my brother deapreye..while I speak for myself it isnt right you use abusive words on him...

nateevs:



You are regurgitating the same crap. Sorry, are Nigerians the only humans in Sales and Marketing?
"Crude Oil goes beyond buying and selling" but has this "art" only been discovered in Nigeria?
So "high level politics" seems absent in all other countries that sell Crude Oil.


I am not in Sales and Marketing but I have common sense. So I didn't miss the part where the Commissioner states that Nigeria is the ONLY country in the world where this fraudulent methods apply. I also took some time to reflect back on Gbawe's link showing how Ribadu had identified this problem and advised solutions.

So I ask you again. How does it obtain in other countries? And what exactly are you defending?

Almost half of Nigeria’s cargoes due to be exported in January are still available, Reuters has reported, even as oil prices reach the $50s trough, almost $10 below Nigeria’s benchmark price.

The backlog has pushed Nigerian oil differentials versus Brent to their lowest since at least 2009 BFO-QUA at 65 cents a barrel, down 80 per cent since May, said Reuters. And it is also creating a discount frenzy between African and Gulf oil producers to Asian buyers.

Asia has become a hotspot for a price war between African and Gulf oil producers who, hobbled by bulging global supplies and waning demand, are offering steep discounts to defend their market share in the world’s top net crude buying region.

The competition is welcome news for Asian buyers. If oil stays near $60 per barrel, import costs for the world’s second biggest oil consumer, China, would drop to under $125 billion a year, versus $222 billion in 2013 when crude averaged $110.

But for producers, it means more competition, and African sellers like Nigeria and Angola, faced with precarious finances due to plummeting oil prices, are struggling to make inroads into Asia, a Middle Eastern stronghold.

Owing to the frantic competition for Asian buyers, India, THISDAY learnt, has taken the unusual step of asking Nigeria to offer it a 90-day credit line if it must continue to buy her crude oil.

With the loss of the US market earlier this year, India has replaced it as Nigeria’s biggest buyer of the country’s light crude grade.

“There is competition between West African and Middle East suppliers for the Asian markets, but the Middle East suppliers have the cost advantage,” said Philip Andrews-Speed, head of Energy Security Division at the National University of Singapore. The city-state is a major oil trading hub in Asia.

Low operating costs in Saudi Arabia, Kuwait and the Emirates already allow these countries to offer hefty discounts.

Now, a more than 50 per cent jump in freight rates between West Africa and China since September is adding to the relative advantage of Middle Eastern grades, which require shorter shipping distances to Asia. This has been a big setback for West African producers.

West African exports got a brief boost in August when Brent’s premium to Middle East crude DUB-EFS-1M narrowed to less than $2 per barrel from almost $5 in June. But with Middle Eastern producers now offering even more competitive prices, the advantage has faded.

“A year ago, a $2 premium would have been attractive, but in today’s environment it’s different,” a trader dealing with West African crude said.

West African producers traditionally sold most of their oil to North America and Europe, but exports dwindled given a gusher of shale oil from the United States and higher output from nations outside the Organisation of the Petroleum Exporting Countries (OPEC).

West African crude exports to Asia rose more than 4 per cent between January and December, Reuters data has shown. China accounted for most of the rise as it took advantage of low prices to build up oil reserves.

But the higher West African arrivals into Asia were mainly due to sales before October, and have dropped since then due to Middle East discounts.

Middle East producers continue to dominate the Asian oil market, with Saudi Arabia, the United Arab Emirates (UAE) and Kuwait all increasing shipments to the region since 2012.

The Middle East accounts for around half of China’s imports and Africa has a 25 per cent share.

With pricing an advantage for Gulf producers, one hope for West Africa is China’s drive for diversification in order to avoid over-reliance on Middle Eastern oil, JBC Energy said.

But analysts are sceptical about the sustainability of steep discounts, as producers need higher prices to finance their budgets.

“Governments that underpin their budgets with oil or metals have seen currency values plummet, reserves erode or current account deficits rise… Regimes built on oil wealth will come under pressure,” risk consultancy and insurance brokerage JLT Group said in its 2015 outlook.

Meanwhile, Excelerate Energy’s Texan liquefied natural gas terminal plan has become the first victim of the oil price slump threatening the economics of US LNG export projects.

A halving in the oil price since June has upended assumptions by developers that cheap US LNG would muscle into high-value Asian energy markets, which relied on oil prices staying high to make the US supply affordable.

The floating 8 million tonne per annum (mtpa) export plant moored at Lavaca Bay, Texas advanced by Houston-based Excelerate has been put on hold, according to regulatory filings obtained by Reuters.

The project was initially due to begin exports in 2018.

Excelerate’s move bodes ill for 13 other US LNG projects, which have also not signed up enough international buyers, to reach a final investment decision (FID). Only Cheniere’s Sabine Pass and Sempra’s Cameron LNG projects have hit that milestone.

Back when LNG and crude oil prices were riding high in February, Excelerate, founded by Oklahoma billionaire George Kaiser, applied for permits to build the facility.

Eleven months on, its submission to the US Federal Energy Regulatory Commission on December 23 said that uncertainty generated by a steep decrease in oil prices has forced it to conduct a “strategic reconsideration of the economic value of the project” and to suspend all activities until April 1, 2015.

“Due to the recent global market conditions, the company has determined that, at this time, this project no longer meets the financial criteria necessary in order for us to move forward with the capital investment,” a company spokesman told Reuters.

Stiff economic headwinds are making new developments tough going.
Prices that LNG projects can charge for long-term supply are falling from historic highs as new producers crowd the market, which is already oversupplied due to slowing demand and rising output that has seen spot Asian LNG prices halve this year.

At the same time, major consumers from Japan to South Korea and China are seeking to offload some of their long-term LNG supply commitments, contributing to the glut.

Excelerate Energy will update the regulator on the status of Lavaca Bay in April, 2015, according to the filing.

The export plant operates under a tolling model, whereby the developer sells liquefaction capacity to LNG consumers who then must arrange for shipping to transport the fuel.

Typically, companies seek to lock-in buyers for around 85 per cent of a project’s capacity before reaching an investment decision.

Excelerate hints in the filing that lacklustre demand for capacity was behind the suspension, saying that only “renewed interest of potential counterparties” could get it moving again.

Even before the oil price slide, US LNG projects were struggling to sign up the big Asian buyers needed to underpin multi-billion dollar investments, resorting finally to tapping vestiges of demand left in Europe.

Seen in the light of plus-$100 a barrel oil, projects to liquefy and export US gas by ship promised major cost savings to Asian buyers reliant on costly oil-linked gas supplied by Australia and Qatar, which generated huge demand.

The advantage of US export plants was that the LNG costs would reflect local benchmark Henry Hub gas prices, currently trading around $4 per million British thermal units (mmBtu), plus shipping and liquefaction costs.

“The oil price plunge makes US LNG with prices linked to Henry Hub potentially uncompetitive with LNG from other sources especially those using an oil price linkage,” independent consultant Andy Flower said.

Prior to the oil price crash, the US discount to rival Brent-linked LNG supply from Qatar and Australia was around $8-$9 per mmBtu. Now those supplies represent a cost saving over US projects.

“With US LNG no longer looking to be the cheap LNG that off-takers have been seeking, finding companies prepared to commit to tolling fees for 20 years has become more challenging,” Flower said.

http://www.thisdaylive.com/articles/nigeria-struggles-to-sell-oil-cargoes-offers-discounts-to-asian-buyers/198070

Speaking in an interview with Daily Trust on Saturday at the weekend, the High Commissioner stated that Nigeria is the only country who uses intermediaries in its oil deals with India, saying, “From other countries, when we buy oil, whatever we want to pay, we pay to the Ministry of Finance of that country. In Nigeria, we pay to intermediaries. We would like to be dealing directly with the Nigeria National Petroleum Corporation (NNPC).

Almost half of Nigeria’s cargoes due to be exported in January are still available, Reuters has reported, even as oil prices reach the $50s trough, almost $10 below Nigeria’s benchmark price.

The backlog has pushed Nigerian oil differentials versus Brent to their lowest since at least 2009 BFO-QUA at 65 cents a barrel, down 80 per cent since May, said Reuters. And it is also creating a discount frenzy between African and Gulf oil producers to Asian buyers.

Asia has become a hotspot for a price war between African and Gulf oil producers who, hobbled by bulging global supplies and waning demand, are offering steep discounts to defend their market share in the world’s top net crude buying region.

The competition is welcome news for Asian buyers. If oil stays near $60 per barrel, import costs for the world’s second biggest oil consumer, China, would drop to under $125 billion a year, versus $222 billion in 2013 when crude averaged $110.

But for producers, it means more competition, and African sellers like Nigeria and Angola, faced with precarious finances due to plummeting oil prices, are struggling to make inroads into Asia, a Middle Eastern stronghold.

Owing to the frantic competition for Asian buyers, India, THISDAY learnt, has taken the unusual step of asking Nigeria to offer it a 90-day credit line if it must continue to buy her crude oil.

With the loss of the US market earlier this year, India has replaced it as Nigeria’s biggest buyer of the country’s light crude grade.

“There is competition between West African and Middle East suppliers for the Asian markets, but the Middle East suppliers have the cost advantage,” said Philip Andrews-Speed, head of Energy Security Division at the National University of Singapore. The city-state is a major oil trading hub in Asia.

Low operating costs in Saudi Arabia, Kuwait and the Emirates already allow these countries to offer hefty discounts.

Now, a more than 50 per cent jump in freight rates between West Africa and China since September is adding to the relative advantage of Middle Eastern grades, which require shorter shipping distances to Asia. This has been a big setback for West African producers.

West African exports got a brief boost in August when Brent’s premium to Middle East crude DUB-EFS-1M narrowed to less than $2 per barrel from almost $5 in June. But with Middle Eastern producers now offering even more competitive prices, the advantage has faded.

“A year ago, a $2 premium would have been attractive, but in today’s environment it’s different,” a trader dealing with West African crude said.

West African producers traditionally sold most of their oil to North America and Europe, but exports dwindled given a gusher of shale oil from the United States and higher output from nations outside the Organisation of the Petroleum Exporting Countries (OPEC).

West African crude exports to Asia rose more than 4 per cent between January and December, Reuters data has shown. China accounted for most of the rise as it took advantage of low prices to build up oil reserves.

But the higher West African arrivals into Asia were mainly due to sales before October, and have dropped since then due to Middle East discounts.

Middle East producers continue to dominate the Asian oil market, with Saudi Arabia, the United Arab Emirates (UAE) and Kuwait all increasing shipments to the region since 2012.

The Middle East accounts for around half of China’s imports and Africa has a 25 per cent share.

With pricing an advantage for Gulf producers, one hope for West Africa is China’s drive for diversification in order to avoid over-reliance on Middle Eastern oil, JBC Energy said.

But analysts are sceptical about the sustainability of steep discounts, as producers need higher prices to finance their budgets.

“Governments that underpin their budgets with oil or metals have seen currency values plummet, reserves erode or current account deficits rise… Regimes built on oil wealth will come under pressure,” risk consultancy and insurance brokerage JLT Group said in its 2015 outlook.

Meanwhile, Excelerate Energy’s Texan liquefied natural gas terminal plan has become the first victim of the oil price slump threatening the economics of US LNG export projects.

A halving in the oil price since June has upended assumptions by developers that cheap US LNG would muscle into high-value Asian energy markets, which relied on oil prices staying high to make the US supply affordable.

The floating 8 million tonne per annum (mtpa) export plant moored at Lavaca Bay, Texas advanced by Houston-based Excelerate has been put on hold, according to regulatory filings obtained by Reuters.

The project was initially due to begin exports in 2018.

Excelerate’s move bodes ill for 13 other US LNG projects, which have also not signed up enough international buyers, to reach a final investment decision (FID). Only Cheniere’s Sabine Pass and Sempra’s Cameron LNG projects have hit that milestone.

Back when LNG and crude oil prices were riding high in February, Excelerate, founded by Oklahoma billionaire George Kaiser, applied for permits to build the facility.

Eleven months on, its submission to the US Federal Energy Regulatory Commission on December 23 said that uncertainty generated by a steep decrease in oil prices has forced it to conduct a “strategic reconsideration of the economic value of the project” and to suspend all activities until April 1, 2015.

“Due to the recent global market conditions, the company has determined that, at this time, this project no longer meets the financial criteria necessary in order for us to move forward with the capital investment,” a company spokesman told Reuters.

Stiff economic headwinds are making new developments tough going.
Prices that LNG projects can charge for long-term supply are falling from historic highs as new producers crowd the market, which is already oversupplied due to slowing demand and rising output that has seen spot Asian LNG prices halve this year.

At the same time, major consumers from Japan to South Korea and China are seeking to offload some of their long-term LNG supply commitments, contributing to the glut.

Excelerate Energy will update the regulator on the status of Lavaca Bay in April, 2015, according to the filing.

The export plant operates under a tolling model, whereby the developer sells liquefaction capacity to LNG consumers who then must arrange for shipping to transport the fuel.

Typically, companies seek to lock-in buyers for around 85 per cent of a project’s capacity before reaching an investment decision.

Excelerate hints in the filing that lacklustre demand for capacity was behind the suspension, saying that only “renewed interest of potential counterparties” could get it moving again.

Even before the oil price slide, US LNG projects were struggling to sign up the big Asian buyers needed to underpin multi-billion dollar investments, resorting finally to tapping vestiges of demand left in Europe.

Seen in the light of plus-$100 a barrel oil, projects to liquefy and export US gas by ship promised major cost savings to Asian buyers reliant on costly oil-linked gas supplied by Australia and Qatar, which generated huge demand.

The advantage of US export plants was that the LNG costs would reflect local benchmark Henry Hub gas prices, currently trading around $4 per million British thermal units (mmBtu), plus shipping and liquefaction costs.

“The oil price plunge makes US LNG with prices linked to Henry Hub potentially uncompetitive with LNG from other sources especially those using an oil price linkage,” independent consultant Andy Flower said.

Prior to the oil price crash, the US discount to rival Brent-linked LNG supply from Qatar and Australia was around $8-$9 per mmBtu. Now those supplies represent a cost saving over US projects.

“With US LNG no longer looking to be the cheap LNG that off-takers have been seeking, finding companies prepared to commit to tolling fees for 20 years has become more challenging,” Flower said.

nateevs:



You are regurgitating the same crap. Sorry, are Nigerians the only humans in Sales and Marketing?
"Crude Oil goes beyond buying and selling" but has this "art" only been discovered in Nigeria?
So "high level politics" seems absent in all other countries that sell Crude Oil.


I am not in Sales and Marketing but I have common sense. So I didn't miss the part where the Commissioner states that Nigeria is the ONLY country in the world where this fraudulent methods apply. I also took some time to reflect back on Gbawe's link showing how Ribadu had identified this problem and advised solutions.

So I ask you again. How does it obtain in other countries? And what exactly are you defending?

Ribadu Report Uncovers Sleaze in Oil and Gas Sector

25 Oct 2012


The report also revealed that Nigeria was the only nation to sell all its crude through international oil traders rather than directly to refineries, adding that such trades were often opaque.

It said some international oil traders who were not “on the approved master list of customers” had been sold crude oil “without a formal contract” so little could be obtained about the details of these deals, which can be worth hundreds of millions of dollars.

otr1:

Prove that Buhari knows about the agreement before now and I'll agree with you. Or isn't that what you think?
Failure to sign an agreement by the immediate past government (an agreement most certainly not known yet to Buhari prior to the notice) is now Buhari's fault.
You definitely think Buhari sees the paper on his table every morning, ain't it?
Have you confirmed that the papers are even anywhere to be found as we speak?

Now can you tell us the volume of savings and debt inherited by Jonathan and what he left behind?

Explain why Jonathan was borrowing to pay salaries and I'll tell you why Buhari had to borrow?

As we speak, the government is struggling with the available resources owing to Jonathan's mismanagement.

ddippset:
is it the government talking or the Indian commissioner? Or is it the Indian commissioner that should send her to jail? Or is it that nobody has a right to talk again in this country? If they send them to jail now without talking and letting the public know their offenses you will call it witch hunting.! Why are you so stup1d?

IsraeliAIRFORCE:
India wants Nigeria to give them three months before initial payment which Nigeria may not be able to afford.

We are running a deficit budget and someone who have no details about how Nigeria runs the economy becomes chief Economist and start criticizing a decision that may have been evaluated against all odds.

4Play:


You are getting desperate. I am sure that you cannot prove that GEJ knew about the agreement either but I doubt you will find that exculpatory of him. To me the president's knowledge or ignorance is somewhat of a red herring in any case. If presidents are unaware of matters of vital national interest such as how the sale of oil to the country's biggest customer is conducted, then it is a damning indictment of their capability as president. For a president to have to rely on news stories on Nairaland and Daily Trust to inform himself on such matters suggests that neither he nor his advisers have got a good grasp of policy detail.



You made a wholly false assertion about GEJ inheriting virtually no debt and are now cravenly trying to slither away from your dishonesty. GEJ inherited a large debt, he added substantially to it and Buhari has continued in the same vein in his brief tenure by adding substantial amounts to the FG's debt load.

I always laugh at those who say the present Govt is struggling today because of the past Govt. GEJ has not taken the oil wells with him back to Otueke. If you believed the outlandish claims about ginormous amounts of money being stolen by GEJ and his cronies, it would follow that once GEJ left power, those oil revenues which previously were stolen would no longer be stolen. If you have any brain cells, you would recognise that this is entirely separate from the matter of already looted amounts. In a counterfactual world in which the looted amounts were not looted in the first place, it wouldn't make any difference to the FG's day to day revenues and expenditures. If you believe that $20bn was stolen in an 18 month period, you have to believe that such amount, once we discount the fall in oil price, would now accrue to the FG. Instead, we see the FG continue to borrow like nothing has changed. The coming years will provide a harsh dose of reality for you gullible Nigerians.

LadyExcellency:



Why was this information removed from the article?

Lushore1:

Im sure you know how much oil price was when Gej was in power compare to now.

If you believe that $20bn was stolen in an 18 month period, you have to believe that such amount, once we discount the fall in oil price, would now accrue to the FG.

4Play:
The assertion by the Indian High Commissioner is that Nigeria will not sign a long term agreement for its purchase of oil from Nigeria. This is now spun to mean that Madueke was stealing all the money. But now that she is gone, Nigeria has not signed the agreement and does not seem to have any present plans to. Hence, the Indian's threat that India will take its imports from elsewhere if Nigeria fails to abide by its wishes.

It is not remarkable insight to state that Madueke was utterly corrupt. However, this news follows a tiresome pattern where news is spun, if not downright fabricated, to foster the impression that the previous regime has stolen all the wealth. It seems to have become a means of distraction and to prepare Nigerians for the inevitability of expectations not being met by the new regime by suggesting that the old regime stole all the money. The problem with this tactic is that if all these gargantuan amount has been stolen, what stops you from recovering it even if just a fraction of it? If anything, the sensationalism raises expectations as people would rightfully expect that if the GEJ regime stole say $60bn, the Buhari regime would be able to recover atleast 10% of that. The failure to recover sizeable amounts of money will prove to be awkward in the future.

omowolewa:
I no trust Indians, let me hear from the Minister first or see the contrct papers.

She might have acted in good faith.

IsraeliAIRFORCE:


Stop being ridiculous, what do you know more above a decision taken by the Economic team consisting of Malam Sanusi Lamido, Dr Iweala, Madueke and others and endorsed by the Presidency?

omowolewa:
I no trust Indians, let me hear from the Minister first or see the contrct papers.

She might have acted in good faith.

4Play:


Hence my assertion:

GEJ left power in May 2015 and presided over almost a year of low oil prices. If he was stealing as much money as claimed, you would have expected to see a massive jump in revenues, and the attendant reduction in FG debt expansion, from June 2015. There is very little evidence of that and instead we seem to have continued on our borrowing spree.

It is not a defence of GEJ's regime: it was a very corrupt and inept regime. It's a refutation of the popular notion in Nigeria that our problem is primarily a corruption problem when it is far worse than that. Nigeria was messed up in 1998, before the PDP era, when minimum wage was 540 Naira per month or $6 per month at the parallel market's exchange rate. No amount of wishful thinking or sensationalist news articles such as this which attempts to reduce every problem to "blame Jonathan" will change that.

FOLYKAZE:


That you find it hard to accept your praise Lord is an authoritative thief does not mean you should bark at justice.

These people are stealing your future and that of your unborn children. These people are taking whats belong to the nation as their personal properties. They become demi-gods so that your parents, yourself and children will be bounded in poverty slavery. How much is your father's salary? Is he not doing a hardwork? But how much does he earn in a month? How much does Diezene who doesnt do a job harder than your mom does earn? They steal and steal everything and all you are expected to do is to cowardly bark at justice.

Look at the country and ask yourself what is working. If your father develop a stroke, he will dies because the hospitals around does not have any facilities to handle stroke while Diezena will fly out on air ambulance to spain for treatment. If your mother travel from the north to south in a public or private car, she will developed body pains because the road is too bad but you can defend a theiving person who fly around like bird in chartered Jet with out common wealth. Do you know what the standard of education is in India? They steal your money are send their wom children abroad while you lavish in annually striking varsity with poor facilities. Your Granny pension is stolen, he/she is left to die like a rat beating by the rain. Your parents were paid peanuts for working HARD while the Oga you support steals largese of their sweat. Your entitlements and benefits were stolen and all you can do is to shout around like a dog that lost it bone because Diezene is from your tribe.

Sorry for the son of the meat seller who fight over bone and praise those that steal the big flesh. It is a shame tribalism and bigotry has beclouded you.

4Play:


You are getting desperate. I am sure that you cannot prove that GEJ knew about the agreement either but I doubt you will find that exculpatory of him. To me the president's knowledge or ignorance is somewhat of a red herring in any case. If presidents are unaware of matters of vital national interest such as how the sale of oil to the country's biggest customer is conducted, then it is a damning indictment of their capability as president. For a president to have to rely on news stories on Nairaland and Daily Trust to inform himself on such matters suggests that neither he nor his advisers have got a good grasp of policy detail.

You made a wholly false assertion about GEJ inheriting virtually no debt and are now cravenly trying to slither away from your dishonesty. GEJ inherited a large debt, he added substantially to it and Buhari has continued in the same vein in his brief tenure by adding substantial amounts to the FG's debt load.

I always laugh at those who say the present Govt is struggling today because of the past Govt. GEJ has not taken the oil wells with him back to Otueke. If you believed the outlandish claims about ginormous amounts of money being stolen by GEJ and his cronies, it would follow that once GEJ left power, those oil revenues which previously were stolen would no longer be stolen. If you have any brain cells, you would recognise that this is entirely separate from the matter of already looted amounts. In a counterfactual world in which the looted amounts were not looted in the first place, it wouldn't make any difference to the FG's day to day revenues and expenditures. If you believe that $20bn was stolen in an 18 month period, you have to believe that such amount, once we discount the fall in oil price, would now accrue to the FG. Instead, we see the FG continue to borrow like nothing has changed. The coming years will provide a harsh dose of reality for you gullible Nigerians.

Change2015:


Swaps were introduced to deal with our lack of refining capacity and we expected refined products as part of the bargain. For that purpose NNPC has always had a domestic allocation of crude. The ioc's already take a percentage of production to cover their investment in production. Where else would we need agents/intermediaries to deal with another sovereign nation, if not that people are looking to collect commission for very little work? Especially when you have read here that Iran and Saudi Arabia are offering the same major consumer incentives to corner their business. If your understanding is little, silence works best.

IsraeliAIRFORCE:


Enjoy your ignorance or better still educate yourself by acquiring practical experience and challenges beyond academic exercises and pun on words.

Nigeria has a target sales and considering market forces beyond its controls, any superior means of "cash on transaction" have it. We are already financially trapped.

If you had read further submissions and considered India's additional conditions and demand of 90 day credit, you wouldn't still be exposing your inadequacies.

How on earth should India change the rule of the game midway by giving Nigeria a stringent condition and you expect Nigeria to give in?

"I too know" has always been APC sycophants forte and I give up on you.

Tkester:
Nonsense and cheap propaganda!

Very soon it will be:

Breaking news: Oil well discovered in Diezani's compound.

sevule:


I have read this thread with great interest and you have said ABSOLUTLEY NOTHING about why Nigeria is the ONLY country that sells its oil through intermediaries. All you do is beat around the bush. The question is VERY simple. Why is Nigeria the ONLY country in the world that sells its oil through intermediaries?

Since you have REFUSED to answer the question, let me answer it again. This unwholesome practice happened to ensure that there is no accountability regarding how much oil Nigeria actually sells and in order to get kickbacks through these third party agents. If you have something intelligent to say then feel free to say it and stop posting garbage about target sales and market forces, things you obviously know nothing about. Nigeria is not the only oil producing country that has a set target for sales or is subject to market forces so those feeble excuses DO NOT hold water.

@Gbawe your response was insightful and I was amazed to see that you actually wrote about this as far back as 2012! I am glad that there are still Nigerians out there who would not mortgage themselves for 3 akara balls and a sack of rice

https://www.nairaland.com/1185867/fg-may-dump-ribadu-report

IsraeliAIRFORCE:


You are not in any position to suggest for Nigeria's team of Economic experts made up of seasoned technocrats on which model to adopt that best suits the country.

We have the National Assembly that are saddled with the responsibility of oversight function yet they have never queried nor disputed this same model in any hearing even during budget presentations.

Was Nigeria dealing with USA through intermediaries? The answer is No.

Do you know that it is only certain percentage and no all that are sold through intermediaries?

Having seen outrageous conditions (3 months credit before initial payment) given by Indian Government for direct dealing, don't you think there are valid reasons for agents who are ready to provide immediate cash on transactions to sustain our Father Christmas federal system?

The truth is that certain decisions are left for the experts and their model varies depending on conditions existing at a time.

Ribadu committee was meant to be advisory and not to replace the expert decisions of the Economic team consisting of CBN, Finance Ministry, Petroleum Ministry and other notable technocrats.

“Nigeria is the only major oil producing country that sells its crude oil through intermediaries, and Nigeria is the one that loses money by selling its crude oil through intermediaries. We know what is right, but we have not done it. That is the issue of governance that we are talking about,” said Dayo Ayoade, senior lecturer, Energy Law at the Faculty of Law, University of Lagos, adding that the middlemen are offered an opportunity to make margins through reselling the crude.

“It is not that the NNPC crude marketing division cannot sell directly to the world market, but the system does not allow them. The current practice is what the powers that be in the country use to compensate their members. It is seen as the incentives in government,” said another industry analyst.

sevule:


Please read the article below and STOP exposing your ignorance about Nigeria's oil dealings!!
http://businessdayonline.com/2014/06/questions-over-nigerias-use-of-middlemen-to-market-crude/

YES Nigeria sells oil to the USA through intermediaries! You are either willfully blind to the truth or you are paid to post the praises of the most corrupt government Nigeria has ever had. Below is an excerpt from the link above:



For ANYONE that did basic primary school, they can see from the bolded that Nigeria IS LOSING money by selling our crude oil through intermediaries! And yet you come here and talk about having faith in useless economists that are NOT adding value to our country. If you cannot and would not see the TRUTH that is right before your eyes, then I am sorry FOR YOU

It was gathered that around 1984/85, NNPC introduced the yearly crude oil lifting contracts in which global oil traders and the IOCs had to compete for the award of contracts. Up until recently, contracts were mostly given directly to global trading houses such as Glencore, Vitol, Trafigura or Gunvor, Mercuria and IOCs.

In its requirements for marketing the Nigerian crude oil, the Crude Oil Marketing Division of NNPC said that those who wished to buy and sell Nigerian crude oil must demonstrate their commitment to the oil industry through allocation of adequate resources of capital, equipment and manpower to the general business of prospecting, exploration and production of crude oil.

“Lack of transparency of the criteria used to determine eligibility makes the policy seem driven by personal interest at the expense of national interest,”

IsraeliAIRFORCE:


Enjoy your ignorance or better still educate yourself by acquiring practical experience and challenges beyond academic exercises and pun on words.

Nigeria has a target sales and considering market forces beyond its controls, any superior means of "cash on transaction" have it. We are already financially trapped.

If you had read further submissions and considered India's additional conditions and demand of 90 day credit, you wouldn't still be exposing your inadequacies.

How on earth should India change the rule of the game midway by giving Nigeria a stringent condition and you expect Nigeria to give in?

"I too know" has always been APC sycophants forte and I give up on you.

Change2015:


Lol, you are a typical Jonathan person. Thanks for amusing me. Next thing according to you we will be hawking our oil in the streets abi? Ish

IsraeliAIRFORCE:


Please this is Buhari's legacy which Jonathan tried by introducing certain better changes involving direct country to country deals depending on terms of payments.

The excerpts

It was gathered that around 1984/85, NNPC introduced the yearly crude oil lifting contracts in which global oil traders and the IOCs had to compete for the award of contracts. Up until recently, contracts were mostly given directly to global trading houses such as Glencore, Vitol, Trafigura or Gunvor, Mercuria and IOCs.

In its requirements for marketing the Nigerian crude oil, the Crude Oil Marketing Division of NNPC said that those who wished to buy and sell Nigerian crude oil must demonstrate their commitment to the oil industry through allocation of adequate resources of capital, equipment and manpower to the general business of prospecting, exploration and production of crude oil.

“Lack of transparency of the criteria used to determine eligibility makes the policy seem driven by personal interest at the expense of national interest,”