₦airaland Forum

GENERATOGERIA:
chai, ogbene nigeria mass sack ke can nigeria survive without oil?

MASS SACK LOOMS AS MORE IOCs MULL EXIT
By Adeola Yusuf

Mass sack is currently looming in Nigeria’s oil industry as more international oil companies consider pulling out from Nigeria’s oil bloc stakes.

The move, which came a few days after President Muhammadu Buhari assented to the bill that amends the Deep Offshore (and Inland Basin Production Sharing Contract) Act, New Telegraph gathered exclusively yesterday, is to worsen the over 3,500 job loss suffered by Nigeria’s oil industry between 2016 and 2019.

French super major, Total, which pioneered the fresh exit plan from Oil Mining Lease (OML) 118, this newspaper gathered, has appointed an investment bank, Rothschild, to manage its $750 million asset sale in Nigeria.

Total is not the only international oil company that has stakes in OML 118.

The stake owners include Royal Dutch Shell – the operator – Exxon Mobil and Eni.

While Royal Dutch Shell owns 55 per cent stake in OML 118, Exxon Mobil has 20 per cent, Eni and Total both own 12 per cent in the oil bloc.

There has been exchange of correspondences between the IOCs offices in Nigeria and their headquarters situated in their mother countries over this move, this newspaper can report authoritatively.

“While a lot of these correspondences centred on implications of the new law guiding Production Sharing Contracts (PSCs) to “our bottom lines, our officers here in Nigeria have been tasked to take resolutions on the new bill as an emergency,” a top management staff of one of the oil majors told this newspaper.

Stating that there would be need for re-adjustment in revenue forecast and projections made on investments in Nigeria before the bill, he maintained that there would be “realignment in spending and possible right-sizing to reflect the new reality.”

There has been mass sack of over 3,500 workers in Nigeria’s oil industry between 2016 and 2019, data compiled by this newspaper showed.

While the country’s economic recession was responsible for the sack of about 3,000 in 2016, the United States super oil major, Chevron, sacked 500 staff working on various projects of the company in Nigeria in 2019.

The two major unions in the oil and gas sector, Nigeria Union of Petroleum and Natural Gas (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), then threatened to go on strike, saying over 3,000 of their members were affected during the 2016 mass sack.

Total Group is already looking for buyers for one of its major oil blocs in Nigeria.

The oil company wants to sell off its 12.5 per cent stake and has already contracted an investment bank to manage the sale process of the deepwater oilfield.

Total’s 12.5 per cent stake in the deepwater oilfield, Oil Mining Lease 118, is estimated to be worth $750 million. Part of the oil bloc includes Bonga field, which began production in 2005.

According to report, the Bonga field has produced around 225,000 barrels of oil and 150 million standard cubic feet of gas per day at its peak.

With the $10 billion development of the Bonga Southwest field, production output is expected to grow.

The decision to sell its stake in the OML 118, which is located some 120 kilometres (75 miles) off Niger Delta, is coming amidst Total’s expansion in Africa.

The company is also reportedly planning to sell $5 billion of assets around the world by 2020; the sale of its stake in OML 118 is part of the assets’ sale.

Shell Nigeria Exploration and Production Company (SNEPCo), it would be recalled, invited interested bidders for the development of the Bonga South West Aparo (BSWA) oil field in February 2019.

It was reported that the project’s initial phase includes a new Floating, Production, Storage and Offloading (FPSO) vessel, more than 20 deep-water wells and related subsea infrastructure.

The field lies across Oil Mining Leases 118, 132 and 140, about 15km southwest of the existing Bonga Main FPSO.

But Shell disclosed days after that the directive by the Nigerian government to foreign oil companies to pay $20 billion in taxes owed would delay the final investment decision on its Bonga Southwest deepwater oilfield.

tylann:
also dont forget eastern and southern africa are more developed than west africa ,ghana being the exception only

east africa is the fastest growing region of africa

tylann:
such shallow brains
because we intergrate our urban development and environment well
the only capital city with national park with it is borders

google green city under the sun and see the origin of the name
and stop comparing nairobi with that grazing field called abuja

tylann:
which kenyans can you name them

most kenyans have never been to nairobi so what are you talking about

do you know why UNEP is headquartered in Nairobi

vaxx2:
when it comes to resources, I think devil really bless west africa and south Africa too is not that bad ...

vaxx2:
but we are rather compensate with natural resources and human of value ... Ghana for instance has so many untapped money underground and also in its rock and sea....

Obiano13:
I have been to Ghana twice beautiful country and warm people. But you need to visit east and south african region to see how naturally beautiful some countries is. We west africans were not blessed with natural beauty at all

Problemkid1:
Kiberans are you people blind or something. Can't you skeletons say something about this

justbusy:
eh eh eh eh eh, Irongalaxy, come carry your brother ooooo!

Shma:
Abuja and Nai are both green. But Nai is more greener than Abuja.

Obiano13:
[s]The my brother had to claim the countries because foolish Nigerians they dont like to be told the truth. They reject himand abuse him and ban him. All because he is saying true[/s]

SUFFERInSMILIIN:
How do you know and what proof do you have. I am a Nigerian all the way

SUFFERInSMILIIN:
If you read the book the Art of War you will know to fight the enemy where they aren't. Yes I have been to all of those countries. I never said I was a Zimbabwean Ghanaian or Kenyan. I said I have lived in this country and I am a Nigerian future one

justbusy:
He's a South African!

justbusy:
He's a citizen of the world! A global citizen. A man who has no flag!

justbusy:
Your Username speaks for you: "SUFFERIN SMILING." In life, what you call yourself is what you are! Byyyyyyyeeeeeeeeee!

SUFFERInSMILIIN:
If you zoom into the picture of the open defecation Lagos Style you will see that the guy is defecating and drinking pure water at the same time also his penis is also erected. That is why my picture quality is excellent

SUFFERInSMILIIN:
I am hundred percent born and bred in Nigeria and sometimes the truth must be told

justbusy:
What country are you from?

tylann:
haa defeat in the air

they are a thousand pics of abuja here none of them shows greenery

nairobi is not called green city under the sun for nothing

rvp2018:
Reminder you're the poverty capital that cursed and is nearest to the scum of earth if you can

rvp2018:
Oil future is grim. Despite all noise..you still depend 90% on Oil for gov revenues.In 2yrs time most car manufacturers will stop production of petrol cars.Unless Cobalt or Nickel or Lithium runs out..

rvp2018:
You can leverage or borrow but not when you're borrowing to pay salaries and pension.Dangote little concrete roads so he avoid taxes is crazy proposition.You sit on bitumen...you just need to mine it.Or let Dangote do it.He is the only human in the zoo

rvp2018:
Using the puny federal budget that less thannkenya..all dream are valid including wet dreams. Let me tell you what I read today.Fitch report showing your oil production will continue to drop as oil fields mature without repairs with oil prices falling.Think about what you can do with 1.5m barrels daily on around 55 dollars.Your federal budget will receive an hair cut.

rvp2018:
Using the puny federal budget...all dream are valid including wet dreams.

Jonraid:
Just post those beautiful locations you have! To be fair,they are unattractive and not so pleasing!

Carmit:
Why are you soo pained?
You're hella funny!

rvp2018:
Industrialization on generators.Fix that.or hand it over to Dangote

Jonraid:
Of course he has Sam,now stop crying!

Jonraid:
Beautiful unlike the soulless Nigeria.Where do Nigerians go to unwind in the weekends?