₦airaland Forum

The revenue woes facing local oil companies
following the sharp drop in global oil prices
have been worsened by the recent upsurge
in militant attacks in the Niger Delta,
industry players have said.


They stated this at the 40th Nigeria Annual
International Conference and Exhibition of
the Society of Petroleum Engineers in Lagos.
The Managing Director, Seplat Petroleum
Development Company Plc, Mr. Austin
Avuru, said about 70 per cent of the
nation’s production from the traditional
terrain of onshore and shallow water had
been locked in.


“A year ago, we were battling with zero
production and zero revenue for upwards of
five, six months. Some of us no longer
check the oil price, it has become irrelevant.
Oil price is only relevant when you
produce,” Avuru stated.


He added that the oil and gas industry was
undergoing a major transformation a couple
of years ago aimed at moving it away from
just being a primary revenue earner for the
Federal Government to becoming an
enabler of economic development.


He said, “We have said that this industry will
move away from domestic consumption of
less than 300 million standard cubic feet of
gas per day to three billion scfpd, and in the
process, energising companies like Dangote
so that we can become a net exporter of
cement and fertiliser; in the process,
delivering 15 gigawatts of electricity and all
its multiplier effects.


“That is the journey that the industry
started a few years ago. That journey,
unfortunately, today is being interrupted by
some forces. The crisis in the Niger Delta
has taken a turn that must worry all of us
because when we don’t produce, our
companies are destroyed, jobs are
destroyed and the economy is destroyed.”


Recalling that last week, Seplat released its
financial results, Avuru said, “For the first
time ever since we started this business six
years ago, we made a half-year loss from
bountiful profits.”
Oando Plc, which is another major
indigenous player, said on Tuesday that it
made a loss after tax of N27bn in the first
half of this year, a drop from the N35bn loss
it recorded a year ago.


The Chairman of SPE Nigeria Council, Mr.
George Kalu, said the conference theme,
‘Transparency in the oil and gas business:
An imperative for energy security and
stability’, was timely given that oil prices
were hovering around $43 per barrel in
recent times with significant challenges to
the Nigerian oil and gas business
environment.


He said, “These challenges including
funding constraints rising from cash call
arrears, exchange rate differential in a
cyclical oil price regime, high operational
costs due to long contracting cycle time,
and severely delayed payment to vendors,
as well as high cost of borrowing are
affecting the much-anticipated boom in the
industry.


“One would think that with the low oil price,
improved revenue will come for gas sales.
However, the lack of gas gathering and
supply infrastructure is hampering the
country’s ability to maximise the benefits of
the sale of gas in the domestic market,
which is currently more attractive than the
international market.”


Kalu said the recent challenge of vandalism
and outright destruction of oil and gas
facilities had further curtailed Nigeria’s oil
and gas production, power generation
ability, reduced the flow of revenue,
escalated the cost of environmental
remediation and provision of secondary
health care facilities, as well as increased
security surveillance and facility
replacement costs.


He added that the delay in the passage of
the Petroleum Industry Bill had constrained
further investment in the sector to the
extent that exploration activities were at
their lowest ebb.


Source: punchng.com/nigerias-oil-firms-face-zero-revenue-post-losses/

No more Oil

Mr Avuru is more interested in producing gas for the devil Dangote than to produce for the local communities where these resources are found

Of course, injustice never lasts

All the whole English you are speaking is based on some village people's resources, On Oil belonging Niger delta ethnic nationalities and resources

Ancestral Lands

All these oil companies are criminal organizations engaging in Theft of the wealth of Niger delta peoples oil

there's oyel in d north. let buari use it to develop nigeria like dubai.

Buhari will soon ground the constitution officially

yang:
No more Oil

Mr Avuru is more interested in producing gas for the devil Dangote than to produce for the local communities where these resources are found

Of course, injustice never lasts

All the whole English you are speaking is based on some village people's resources, On Oil belonging Niger delta ethnic nationalities and resources

Ancestral Lands

All these oil companies are criminal organizations engaging in Theft of the wealth of Niger delta peoples oil

The way u guys think ehhhhhhhh, u need heavy deliverance, every single bad news that happens to Nigeria u re always happy about it?

Because am happy
Clap along if you fell like a room without a roof
Cause am happy

madenigga:
The way u guys think ehhhhhhhh, u need heavy deliverance, every single bad news that happens to Nigeria u re always happy about it?

Give me just one reason not to be happy....as this petulant regime crumbles.

nijabazaar:
Give me just one reason not to be happy....as this petulant regime crumbles.

Its not abt d regime or administration or even Buhari its about the love for your country.
Take it or leave it this is not good news nd it wud affect us all even u?

madenigga:
Its not abt d regime or administration or even Buhari its about the love for your country.
Take it or leave it this is not good news nd it wud affect us all even u?

it will ginger me to believe in restructuring, it means that a revolution is brewing. France experienced this particular kinda scenerio in the 17th century.....the citizenz erupted and charted new courses for themselves.

thats why every bad news in this regime is a gift fron the fates..Accept it as it is.

nijabazaar:
it will ginger me to believe in restructuring, it means that a revolution is brewing. France experienced this particular kinda scenerio in the 17th century.....the citizenz erupted and charted new courses for themselves.

thats why every bad news in this regime is a gift fron the fates..Accept it as it is.

Love thy neighbour as thy self.
Do not just love ur friends but love ur enemies nd pray for them.
Promotion commeth not from the east west north or south, it comes from God.
Vengance is of the Lord.

madenigga:
Love thy neighbour as thy self.
Do not just love ur friends but love ur enemies nd pray for them.
Promotion commeth not from the east west north or south, it comes from God.
Vengance is of the Lord.

My parents and posibly ur parents have been sayin that since 1960BC and in their liftime Power had nver been 24/7 nor had Nigeria turned to India (not singapore ooo).

My friend leta chart our course....these politicians have had enough of out buttocks fats...time to sock them into sewers.

Hate it or not Buhari is 70 percent responsible for it while the rest 30 percent can be attributed to low oil prices .. Buhari should have done a situation simulation and strategic analysis of what the results would be if he goes against Niger delta militants in a bid to recover monies they got from bogus contracts during Jonathan's govt..if he had he would have seen that the outcome was going to tell hard on a Nigerian economy already suffering from low international oil price and he would have shelved the idea for some other time like most smart leaders would but Buhari being the visionless leader he is would go ahead and give Tompolo 72 hrs to report at the EFCC office and the declare him wanted