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Nigeria’s Oil Fields Face Shutdown Amid Price Slump - Business (2) - Nairaland

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OPEC Pegs Nigeria’s Oil Output At 1.8 Million Bpd / Britain To Invest In Nigeria’s Oil Pipelines, Others / Hard Times! Economic Downturn Humble Nigeria’s Oil Moguls And Super-rich (2) (3) (4)

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Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by amunkita(m): 8:36am On Jan 19, 2016
Make them do quick shut abeg.

At least if we can't diversify the economy this time then the country should be sold to the british.

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Omeny: 8:39am On Jan 19, 2016
No think am Boss!

Even if the prices of Oil in the international market falls as low as $2pb, those Oil fields will never be shot-down! Due to many reasons!
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Nobody: 8:40am On Jan 19, 2016
ShowYourCertificate:
Yes. It also means our clueless Buhari should stop wasting our money searching for crude oil in Lake Chad. This is the time Buhari needs to sharpen his economics skills. Maybe he can enroll for O'Level Economics in this oncoming WASSCE grin

Hahahahahaha
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Mrlekan07034617: 8:41am On Jan 19, 2016
Bevista:
Meaning that, if oil price averages $30 in 2016, Nigeria will earn a profit of around $5pb instead of the expected $13pb (based on budget benchmark of $38).
---
This will reduce crude oil revenue from ~880bn to ~N400bn. The low oil price will also have contagion effect on other forms of Tax revenue. Basically, $30 oil price might knock off ~N700bn - ~1tn revenue from the 2016 budget. The worst impact will be felt by state governments who depend largely on FAAC with little or no IGR. Lagos state will, surely, be the most resilient of all states, while the likes of Osun and Ekiti will, practically, declare bankruptcy.

True talk bro, it is very important every state government should have IGR plans. Come October/November if there is further decline in crude oil prices then so many states will start experiencing BANKRUPCY
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Idrismusty97(m): 8:43am On Jan 19, 2016
ShowYourCertificate:
Yes. It also means our clueless Buhari should stop wasting our money searching for crude oil in Lake Chad. This is the time Buhari needs to sharpen his economics skills. Maybe he can enroll for O'Level Economics in this oncoming WASSCE grin
Oil can be refined tho.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Ufranklin92(m): 8:44am On Jan 19, 2016
BLWeb:


Stop placing all the woes on Buhari like the keys of the economy is in his hands. We all have a role to play, lets start from ourselves.

Do you know that you are a clown

2 Likes

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Mrlekan07034617: 8:44am On Jan 19, 2016
Omeny:
No think am Boss!

Even if the prices of Oil in the international market falls as low as $2pb, those Oil fields will never be shot-down! Due to many reasons!

What are the reasons?

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Dreadful: 8:45am On Jan 19, 2016
The innocent bloods of MASSOB and IPOB youths massacred by the zoo military will know no rest till the zoo falls. This is just the beginning, it'll come down to USD5 per barrel. Oil thirsty bastids!!!
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by 7thCANON: 8:47am On Jan 19, 2016
What goes to Nigeria coffers is not the differential between cost and revenue. Nigeria operates a profit sharing fiscal regime so only about 51% of the profit will go to NNPC/Nigerian government (after tax). Nevertheless, there is also royalties that are paid for each barrel of oil sold.

Bevista:
Meaning that, if oil price averages $30 in 2016, Nigeria will earn a profit of around $5pb instead of the expected $13pb (based on budget benchmark of $38).
---
This will reduce crude oil revenue from ~880bn to ~N400bn. The low oil price will also have contagion effect on other forms of Tax revenue. Basically, $30 oil price might knock off ~N700bn - ~1tn revenue from the 2016 budget. The worst impact will be felt by state governments who depend largely on FAAC with little or no IGR. Lagos state will, surely, be the most resilient of all states, while the likes of Osun and Ekiti will, practically, declare bankruptcy.
---
Lower oil prices will benefit the Saudis the most since their average production cost is around $12. They can comfortably ride oil price to $20, driving other players out of the market and increasing their market share before prices rise again.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by macklef(m): 8:51am On Jan 19, 2016
Omeny:
No think am Boss!

Even if the prices of Oil in the international market falls as low as $2pb, those Oil fields will never be shot-down! Due to many reasons!
U can do well to tell us d reasons since u obviously control oil fields urself
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by groovie(m): 8:52am On Jan 19, 2016
Bad time for deep sea exploration. Some oil fields in the north sea shut down at $40 per barrel already sef.

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Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by PresVA: 8:54am On Jan 19, 2016
Unfortunately, this will affect all sectors of our economy. .business men, everyone alike...oil being the major source of revenue.

Hard time for Nigeria but we'll surely bounce back..

2 Likes

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by bezimo(m): 8:55am On Jan 19, 2016
googlepikin:
how about the crisis buhari is creating in the SE and SS will that help the oil industry?

The SE is not recognised as having massive crude oil deposits. Buharis efforts to unconsiously destabilise the SS which host the Nations oil deposits will unavoidably have a negative impact on the Nation crude oil export but its impact on the global supply chain would be pretty insignificant considering that Nigeria supplies less than 15% of global crude oil demand.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by babyfaceafrica: 8:55am On Jan 19, 2016
bezimo:


From a business perspective this might be the best time to buy off oil blocs at low prices from owners because oil exploration and production is no longer lucrative for now but we cant say for the future.
I agree with you...oil will still rise later,so a good business man will buy naw

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by ajepako(f): 8:56am On Jan 19, 2016
ShowYourCertificate:
Yes. It also means our clueless Buhari should stop wasting our money searching for crude oil in Lake Chad. This is the time Buhari needs to sharpen his economics skills. Maybe he can enroll for O'Level Economics in this oncoming WASSCE grin


I swear you are not a nice person!

You wicked die... grin grin grin

grin grin grin grin

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by scachy(m): 8:57am On Jan 19, 2016
Nevertheless, campaign promises are non negotiable.
Our politicians always have reasons to deny us our basic needs. Many developed countries had never tested oil and yet they are excelling everyday.
Diversify and get the economy in good shape. We have many alternatives to boost our economy if our politicians are being sincere to us. They all want easy oil money that's y they r lamenting.
Get to work!!
Call me a wailer but I know what am saying

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by ajepako(f): 8:58am On Jan 19, 2016
Good news is, maybe our thieving oil cabals will start selling their oil wells to the middle class and Niger delta can rest..

Fat maybe.. grin grin
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Bevista: 8:58am On Jan 19, 2016
7thCANON:
What goes to Nigeria coffers is not the differential between cost and revenue. Nigeria operates a profit sharing fiscal regime so only about 51% of the profit will go to NNPC/Nigerian government (after tax). Nevertheless, there is also royalties that are paid for each barrel of oil sold.

I want to believe that the differential between cost and revenue is profit. Nigeria earns 51% of that profit through the Profit Sharing Contracts (PSCs) it has with IOCs.
---
The Oil revenue of ~880bn in the budget was based on this 51% of profit. If that profit goes down, Nigeria's revenue goes down proportionally too.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by awa(m): 9:00am On Jan 19, 2016
Naija people should relax. Nothing dey happen. We dey kampe no shaking...

We will recover stolen wealths and fight corruption without developing serious means of cushioning effects of these Oil price sliding.
For now our attention is on fighting corruption locally and later we will face the entire world to clean it up.

The economy nowadays requires team with the professional know-how not just moral standing to succeed. This is where APC-led Federal Government is missing something

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by bakynes(m): 9:00am On Jan 19, 2016
groovie:
Bad time for deep sea exploration. Some oil fields in the north sea shut down at $40 per barrel already sef.
But the North Sea which is btw the UK(Scotland) and Norway is not under OPEC so they sell their oil below OPEC price.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by noblegrex: 9:01am On Jan 19, 2016
emerged01:
Yoruba man will say"haaaaaaaaaa!!!!!!"
and an IGBO man will say,e wo ooooooo, chine ee keee.

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by akilo1: 9:01am On Jan 19, 2016
Oil again?and niger delta militant are bombing and agitating for annesty?endtime grin
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by bezimo(m): 9:02am On Jan 19, 2016
babyfaceafrica:
I agree with you...oil will still rise later,so a good business man will buy naw

I wished I had a little more $$$, I wont have minded investing or partnering with a like minded investor to buy off an oil bloc at this period..
Nevertheless, I must own an oil bloc in this life by Gods grace.

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by CJ2000: 9:02am On Jan 19, 2016
Bunch of animals representing the zoo.
All is interested on how loot money.
It has failed all of you.
the kunu man so called himself Buhari NEPA bill certificate holder has forgotten he is a cattle rearer. keep on chasing the wind till end of 4ys .

Go school you no go
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by bakynes(m): 9:05am On Jan 19, 2016
Bevista:
I want to believe that the differential between cost and revenue is profit. Nigeria earns 51% of that profit through the Profit Sharing Contracts (PSCs) it has with IOCs.
---
The Oil revenue of ~880bn in the budget was based on this 51% of profit. If that profit goes down, Nigeria's revenue goes down proportionally too.
It's called Joint Venture partnership and I think it's btw 65% to state owned Oil company ( NNPC) and 35% IOC. Both sell their oil to different customers. They don't sell together and share the profit in that percentage ratio you mentioned.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by emerged01(m): 9:05am On Jan 19, 2016
noblegrex:
and an IGBO man will say,e wo ooooooo, chine ee keee.

grin honestly,Nigeria needs divine intervention. The situation of Nigeria economy is scary
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by jpphilips(m): 9:05am On Jan 19, 2016
ouch!!
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Hollawaley(m): 9:06am On Jan 19, 2016
Awi funi ka gbo Agba ja kadi ni. They told them to diversify bt they were enjoying oil money. Mofos

1 Like

Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by persius555(m): 9:09am On Jan 19, 2016
tempest01:
The problem now is if you cut supply, another country wins your market. And that doesn't drive the price up since there was an oversupply.



It would have been better if our refineries were working and we were am exporter of refined products, we would have refined locally for our consumption, and exported for forex
Finally, we are thinking. Lets build up our gas production capacity for power generation to support our local industries, increase local refining capacity and export refined byproducts of crude since our oil is sweet crude.
I see a shortage in supply of byproducts from foreign refineries as crude price continues to slump but a gradual demand for automobiles and other transport equipments.
There is a void opening up in the future, if we position ourselves well, we can fill those void easily. We can generate revenues and employment for graduates all over this sector. This arm of crude production we have ignored for years. In fact, the way i see it, as the middle east continues to pump its cheap, heavy oil into global market, global economy will rebound, sweet crude exporters are going to hit goldmine soonest.

The minister for state petroleum simply needs to put his acts together. An opportunity is opening up and this is the best time to take advantage instead of crying wolf.
I have always said it that the fall in crude oil price should be a blessing and not a curse. This is the best time to be innovative.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by Nobody: 9:11am On Jan 19, 2016
bezimo:
If OPEC members can corporate and reduce production by 40% or say 35% or a little less, supply would reduce and the oil price would go up, but no member wants to lose its market share.So the situation continues.
Or Alternatively if there is crisis in the middle east, the oil prices could bounce back but what would trigger the crisis?
why wish for a crisis. OPEC is as weak as what I don't know. Already they are doing more than their quota. Isn't it common sense to have reduced production all these months. That's what you get from an Arab and african organisation.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by bezimo(m): 9:12am On Jan 19, 2016
tempest01:
The problem now is if you cut supply, another country wins your market. And that doesn't drive the price up since there was an oversupply.



It would have been better if our refineries were working and we were am exporter of refined products, we would have refined locally for our consumption, and exported for forex

No OPEC producer is willing to risk losing its market share.
Exactly, working refineries would have helped us manage the situation better.
Re: Nigeria’s Oil Fields Face Shutdown Amid Price Slump by noblegrex: 9:12am On Jan 19, 2016
emerged01:


grin honestly,Nigeria needs divine intervention. The situation of Nigeria economy is scary
yes! Divine interventions you've said it all.that's all.pls lead us in prayers.

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