₦airaland Forum

Abujaexpress:
it's not the oil, but processor sales of the oil

Lets not deceive ourselves with jargon, explain it in plain speak oboy

SmartPolician:
FG reached an agreement with oil companies without the writeup mentioning the companies that signed the contract. This is incomplete.

Na so this journalist and news online be with their Jankara journalism

Comments here show the people are more stupid than their rulers. Oil sales that have been contracted for next 5 years. Watch out the next headlines on this subject....it will be like

..."Oil companies have no oil to give local refineries"
....Oil companies ask FG to fund Oil sales to local refineries....etc..etc..

It won't work. You can't get a revenue from Oil sales into the future as agreed and use it collect loans under very stupid terms and then ask me to divert same encumbered oil to local refineries...

This is talk. Agreements have been in place for a while. NNPC cannot force an IOC to do anything with the oil they produce after they have given NNPC their share of the production.

Perhaps they are referring to NPDC or SEPLAT. These people are playing with Nigerians' intelligence.

Knowing that Nigerian Government owned refineries are usually down most of the time, what happens to volume allocated?

Nigerian should know that the oil in our backyard does not belong to Nigeria after attraction . It is a joint venture.
A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.
Each of the participants in a joint venture is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants’ other business interests.

This Tinubu government has never completed anything good. Tinubu is a scammer.

Paraman:
A good news

God bless President Bola Ahmed Tinubu

God bless the south west and south south

God bless the north

God bless Nigeria forever

Why so parochial and mean? God bless Nigeria, except Southeast as your post suggest? Are you in your right frame of mind?

Something is wrong with you and you need medical evaluation to ascertain your mental health.

That's How they told us that the have paid money for Bonny - Bodo road. Until now nothing is Happening. This set of people are the worst we have ever seen. until I see refineries distributing fuel, I will never believe this people.

Kobojunkie:
The agreement comes at a cost. Ask your government to tell you how much.

How, the agreement comes at a cost?

Enlighten us please.

tellsblinks:
Nigeria has woken up!!!

Imagine a country that has oil finding it difficult to get oil from Oil companies drilling in their country

can you imagine that

Kobojunkie:
The agreement comes at a cost. Ask your government to tell you how much.

Maybe you should tell us the cost since you know...

Sebastine1994:
Foreign oil companies keep 40 percent of Nigeria oil.

60% goes to the Nigerian federal government.

What did the federal government do with its own share? The portion that goes to nnpc.

Nigeria used it own share as collateral for loan to China. Now they don't have oil to sell to dangote. It's a shame . When they would never stop borrowing. That's why this book Dictator handbook is like the political finisher

The IOC managed the operation of 100% of Nigeria's oil , 40% to IOC, 40% to Nigeria and 20% operation cost.

How about the ones dangote promised to release by 23rd last month 🤣🤣

Sebastine1994:
Foreign oil companies keep 40 percent of Nigeria oil.

60% goes to the Nigerian federal government.

What did the federal government do with its own share? The portion that goes to nnpc.

Nigeria used it own share as collateral for loan to China. Now they don't have oil to sell to dangote. It's a shame . When they would never stop borrowing. That's why this book Dictator handbook is like the political finisher

The 40 percent is what comes to Nigeria....not the other way round....stop spreading false news

Haaahaahaa. The way some people talk some things sha.

Each of the JVs in nigeria has governent shares which may vary usually between 55-70%. With the approval of the Seplat deal NNPC will hold 70% while Seplat holds the balance. This will be the highest holding by NNPC in a while.

What this means is that NNPC will fund 70% of the cost of the joint venture while seplat pays the rest. This include capex, opex and expex. This payment is made via a process called cash call. In return, NNPC will lift 70% of the crude produced by the JV and sell on its own as it so wishes.

Thats is why NNPC is able to use crude as collateral for loans because it lifts crude from various JVs.

Of course there is also the PSC arrangement which is totally different but make una read that one.

https://africaoilgasreport.com/2024/05/farm-in-farm-out/nnpc-to-hold-70-of-the-jv-as-the-exxonmobil-seplat-transaction-comes-to-a-close/

That's good news

Paraman:
A good news

God bless President Bola Ahmed Tinubu

God bless the south west and south south

God bless the north

God bless Nigeria forever

Even the south south will be ashamed of your attachment, it's not by force nah aah aah.

Sebastine1994:
Foreign oil companies keep 40 percent of Nigeria oil.

60% goes to the Nigerian federal government.

What did the federal government do with its own share? The portion that goes to nnpc.

Nigeria used it own share as collateral for loan to China. Now they don't have oil to sell to dangote. It's a shame . When they would never stop borrowing. That's why this book Dictator handbook is like the political finisher

Exactly....
Our oil not federal government oil.
This is Nigerias oil, they are making it look like it's their private property

Sebastine1994:
Foreign oil companies keep 40 percent of Nigeria oil.

60% goes to the Nigerian federal government.

What did the federal government do with its own share? The portion that goes to nnpc.

Nigeria used it own share as collateral for loan to China. Now they don't have oil to sell to dangote. It's a shame . When they would never stop borrowing. That's why this book Dictator handbook is like the political finisher

It’s not a simple 40-60 split. The oil companies remove operating costs which is about 55% of all revenue. Then the remaining is split.

Sebastine1994:
Foreign oil companies keep 40 percent of Nigeria oil.

60% goes to the Nigerian federal government.

What did the federal government do with its own share? The portion that goes to nnpc.

Nigeria used it own share as collateral for loan to China. Now they don't have oil to sell to dangote. It's a shame . When they would never stop borrowing. That's why this book Dictator handbook is like the political finisher

IOC get 60% while Nigeria get 40%, just like you've mentioned Nigeria use it share for loan so we don't have any space to supply local refinary, but more oil well are been allocated to some company why can the government divert these one to local refinary?

Blazetrailer:
Comments here show the people are more stupid than their rulers. Oil sales that have been contracted for next 5 years. Watch out the next headlines on this subject....it will be like

..."Oil companies have no oil to give local refineries"
....Oil companies ask FG to fund Oil sales to local refineries....etc..etc..

It won't work. You can't get a revenue from Oil sales into the future as agreed and use it collect loans under very stupid terms and then ask me to divert same encumbered oil to local refineries...

Yes you are right, this year alone many oil well that are just been explore are been giving to new company in which these company are not part of the 5 years deal whats going to become the 40% from these company??

I don't understand.. FG reach agreement with oil companies? As how? Who owns the oil? Now we are heading somewhere does it mean the oil belong to someone else? I don't gerit

Scammed

We are watching and observing


Time will tell

Sebastine1994:
Lets not deceive ourselves with jargon, explain it in plain speak oboy

That was a typographical error. I meant to say the proceeds of the sale of oil