₦airaland Forum

DaBullIT:
Production cost at $29 per barrel

And some erdyots are complaining Buhari is not doing anything for them

Some other erdyots are blowing pipelines

Apparently as far as Nigeria is concerned , there's no profit on crude oil ,

$50 per barrel , $29 processing fees per barrel , cost of import and export nko ? cost of delivery to states all over the country

Son of the soil sold crude oil for $120 per barrel and left empty treasury and some edyotic assvengers are expecting miracle abi ?


Thank God for wall street journal , some people for use agitation rob us die

Not really, they make about 20 dollars profit per barrel.
Maybe if they reduce taxes like Saudi Arabia the profit will be higher.




The whole tax issue is another discussion entirely

mesoprogress:
Over inflated contracts in oil companies and fraud is also adding to these costs.

the report can't be correct , even with all provisions for funding and taxes, cost of getting Nigeria crude to tank can't be more than £$10/bbl

Until Nigeria and Nigerians stop blaming d past administration and focus on developing this country then there will be no way forward cos we will continue to live in yesteryear. I can't believe that after one year our leaders are still shifting blame up and down and some nairalanders are always supporting and casting stone.

The high production and capital costs are probably inflated estimates. Nigeria and corruption

wirinet:
My main question is; if the production cost of Nigeria' s crude is about $29, how was nigeria able to survive low oil prices of between $8 - $16 under the Babangida and Abacha administrations?

so u expect the production cost to be the same from time immemorial?

Since the devaluation of Naira the estimates will need to be recalculated. Maybe $18 production cost?

arresa:
When these Nigerian kabukabu websites copy and paste their rubbish and paid stories, they leave out the critical details conveniently...


This is why I always go to the source and not the useless Nigerian press..

what exactly is your point? that the information is false (which it isn't) or that we should clap for you for providing the original source?

Remii:
the report can't be correct , even with all provisions for funding and taxes, cost of getting Nigeria crude to tank can't be more than £$10/bbl

My brother, the figure is correct. My friend in the oil exploration industry gave me the same figure last year.
I think this figure is grossly over inflated. With the technology employed and the fact that Nigeria oil reserves are relatively shallow (not very deep), the cost of extraction can't be more than $15 per barrel. A suspect corruption between, the oil companies, NNPC officials including DPR and some politicians.
I think Buhari should beam his corruption search light into the production cost of Nigeria's crude. It is way too high.

koboko69:
so u expect the production cost to be the same from time immemorial?

No. I expect production cost to reduce over time. Just like telecommunication infrastructure, the cost should reduce as the investors would have coveted their investment costs within a few years of operation.

Misleading article


They also include transportation costs. No break down of US production cost.

koboko69:
so u expect the production cost to be the same from time immemorial?

some people went to school just to waste time

What is the profit of Niger Deltans and South Souths where the oil is been produeced?

This is why i pity nda,the govt under 50 dollars oil makes little to no profit from oil the only reason the military has not flooded nd is so as not to undo the gains on boko haram snd allow them to recuperate

wirinet:
My main question is; if the production cost of Nigeria' s crude is about $29, how was nigeria able to survive low oil prices of between $8 - $16 under the Babangida and Abacha administrations?

oil is not a big part of our economy and only affects sourcing forex due to shortage of exports.

wirinet:
My brother, the figure is correct. My friend in the oil exploration industry gave me the same figure last year.
I think this figure is grossly over inflated. With the technology employed and the fact that Nigeria oil reserves are relatively shallow (not very deep), the cost of extraction can't be more than $15 per barrel. A suspect corruption between, the oil companies, NNPC officials including DPR and some politicians.
I think Buhari should beam his corruption search light into the production cost of Nigeria's crude. It is way too high.

apart from cost of security, other cost are competitive with international benchmark. We also need to understand cost being referred to here. Cost of drilling a well per foot is different from cost of economic value which is total cost divided by value of recoverable oil. The latter can't be more than $10 and that is more important.

wirinet:
My main question is; if the production cost of Nigeria' s crude is about $29, how was nigeria able to survive low oil prices of between $8 - $16 under the Babangida and Abacha administrations?

I guess it's partly due to having a stronger Naira against the dollar back in the day, along with a much lesser population compared to now.

Pavarottii:
So with the high cost of production, we are making less profit per barrel sold. Which means less money from that sector.

But now d question is. Why d cost of production is high since we not using heavy technologies like US etc.

Insecurity, simple. The cost of securing a single barrel of oil's safe passage from the ground to the terminal is just.....out of this world......but is necessary so that the oil industry becomes increasingly unattractive and the country seeks alternative means of livelihood.....all good.

Why Nigeria always depend on oil so much? [email]Why Nigeria always depend on oil so much? [/email]Why Nigeria always depend on oil so much?

wirinet:
No. I expect production cost to reduce over time. Just like telecommunication infrastructure, the cost should reduce as the investors would have coveted their investment costs within a few years of operation.

Are telecoms infrastructure attacked by terrorists? Are telecoms infrastructure affected by weather conditions? Are they getting oil from the ground under the same conditions as at when Babaginda?

koboko69:
Are telecoms infrastructure attacked by terrorists? Are telecoms infrastructure affected by weather conditions? Are they getting oil from the ground under the same conditions as at when Babaginda?

I understand your arguments but I still feel a production cost of $29 is outrageous, considering the fact at one time Abacha sold the same barrel of oil for $8. (Production cost inclusive)

Why should Nigeria's production cost be third highest in the world. Do you understand the effect of a difference of only $1 per barrel for 2.2 million barrel per day over a period of 1 year?

Breaking News!!! Nigeria is now ranked 3rd highest paying country in the world

Congrats: members of the house of assemble
For that record...hahahhaha... na only them get that share ooo no go think am

Lastly we're also d fastest growing country in the creation of non-employment and we say we get oil..shweee..na record sha

yelloo1:
Until Nigeria and Nigerians stop blaming d past administration and focus on developing this country then there will be no way forward cos we will continue to live in yesteryear. I can't believe that after one year our leaders are still shifting blame up and down and some nairalanders are always supporting and casting stone.

And then Nigerians have to be patient enough with this administration rather than complaining all the time and expecting magic...

Buhari go to hell, and leave our oil alone.

PAINGAIN:
When will salaries in nigeria be the third highest in the world?

Till thy kingdom come

wirinet:
My main question is; if the production cost of Nigeria' s crude is about $29, how was nigeria able to survive low oil prices of between $8 - $16 under the Babangida and Abacha administrations?

$8 - $16 r actually more valuable dan $50 we have now