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Oil’s Meltdown Crushes Independent Crude Producers in Nigeria
By Elisha Bala-Gbogbo and Emele Onu
24 April 2020, 10:07 BST
Updated on 24 April 2020, 16:41 BST
Nigerian lenders also threatened due to $8 billion exposure
Prolonged low crude prices risk sparking a banking crisis
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The unprecedented oil price crash is destroying Nigeria’s independent crude producers, firms who between them pump about a fifth of the nation’s supply, and risks inflicting severe pain on the local banks that finance them.
“The impact is a complete and utter disaster,” Kola Karim, chief executive officer of Shoreline Group, the third-biggest independent, said in an interview. “We’re under water, without adding the cost of finance. If you add the cost of financing, we’re drowning.”
Thank you for your views . I’m glad to see that the core delusional posters are still here , still peddling feeble hope some under different tags it seems . The common thread being that they cannot abide anything that isn’t bright lined . Quite frankly I don’t care what you think of me - you are irrelevant
B. ON ARRIVAL IN NIGERIA
All passengers/persons arriving in Nigeria will be required:
i. To go through the routine Port Health screening and present electronic or print-out evidence of pre-boarding PCR test results and evidence of payment/appointment for a repeat PCR test, in-country;
ii. To present their international passports for clearance through the Nigerian Immigration Service System’s Migrants Identification Data Analysis System (MIDAS). Passenger’s biodata page and picture will be forwarded to all COVID-19 PCR Sample Collection Centers to enable proper identification before sample collection. Passports will not be retained by the Nigerian Immigration Service;
iii. To proceed on 7-day self-isolation/quarantine, during which time they are to avoid physical interaction with friends, family, colleagues, and other members of the public (i.e. must observe strict physical and
2 social distancing). Passengers are please reminded to check their emails regularly for updates regarding the arrangement for their repeat COVID-19 PCR test from the laboratory of their choice;
Semantics . Restrictions may ease not will ease .....
hope everyone whose a believer has deep pockets
Vol. Sold 62,621,366
Sold Value £159.68k
Vol. Bought 29,903,572
Bought Value £76.251
It’s going to drop a lot more come Canada wake up
Sold Value £111.22k
Vol. Bought 16,662,611
Bought Value £48.32k
Re riots on the streets not having an effect As the field is offshore . Any civil disruption will have an effect on NNPC and other minsteries Ability to do their jobs . That and Covid simply bog down decisions and even standard processing. Given that the field is far from having a rig this should all blow over by mid next year .
Nigerian Government: Oil Could Become Worthless
By Irina Slav - Sep 29, 2020, 9:00 AM CDT
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Nigeria needs to make the best of its oil wealth before it becomes worthless, the federal government has warned, adding to a growing concern about the future of the world’s most used and most traded commodity.
As the world moves towards a more renewable energy future, crude oil’s participation in the global energy mix will decline over the next two decades, Nigeria’s petroleum minister, Timipre Sylva, said during a meeting with parliamentary leaders. The meeting was called to discuss the petroleum Industry Bill that should reform the country’s oil industry but has taken decades to draft.
"It is quite unfortunate that since the year 2000 when attempts were made to come up with a draft copy of PIB, to 2007, 2009 and 2012 when draft bills were submitted to different sessions of the National Assembly by the executive arm of government without passage, up till 2018 when the legislators came up with one; that we are yet to put on the ground required laws for effective regulation of the oil industry,” the minister said.
Nigeria is the largest oil producer in Africa, but its oil wealth has been a curse. Rife corruption and environmental damage have plagued Nigeria’s oil history for decades. The PIB, which parliament is discussing right now, was meant to solve most of the industry’s problems and bring in more oil money by amending the royalty regime and production sharing agreement templates.
The latest update on the discussions was a report that as part of the reforms stipulated in the PIB, the government might take NNPC, the state oil company, private. Apart from the privatization of NNPC, the bill will also amend the newly changed offshore royalties and raise the threshold of the price-based royalty to above $50 a barrel from $35 per barrel.
By Irina Slav for Oilprice.com
Why Nigeria’s Oil Company Is Considering An IPO
By Cyril Widdershoven - Oct 01, 2020, 5:00 PM CDT
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Africa’s oil and gas industry is facing a financial onslaught as a result of a combination of COVID-19, activist shareholders and the so-called Greening of IOCs such as Shell, Total and BP. While the oil majors all seem to be preparing for an energy transition and peak oil demand, African countries are betting on a hydrocarbon future. As Shell, BP, and Total make headlines with their diversification away from oil, the largest Sub-Saharan oil and gas producer Nigeria is taking the opposite route. In a long-awaited revision of the Nigerian oil and gas sector, which has been rife with corruption, fraud, and mismanagement by former governments, a bill proposing a possible IPO of the national oil company Nigerian National Petroleum Corporation (NNPC) is now being discussed by parliament. In the new proposal, NNPC will be changed into a limited liability company, fully operating on a commercial basis. NNPC Ltd is to be managed by the Nigerian Ministry of Finance. The biggest impact of this policy if passed is that there will no longer be government funding of NNPC operations. In the case of an IPO, NNPC shares will be offered at market value in an open, transparent, and competitive bidding process. To support a possible share-sale the bill states that an annual audit must be performed by an independent auditor.
The current solution comes after 20 years of political infighting regarding the role and future of the NNPC. The main reasons for this aggressive change of stance seem to be the success of the Aramco IPO, the potential to bring in $200 billion, and the potential to value the NOC at $2 trillion. Another key reason is the increased international pressure on hydrocarbon financing around the world. To counter this pressure, African NOCs such as NNPC are now looking at restructuring their operations and opening up their books. NNPC’s potential IPO will not attract the same level of investors as Aramco, but African private investors and possibly other NOCs and their Sovereign Wealth Funds (SWF) will have their eyes on the Nigerian development. There are already indications that Arab, Russian, and Chinese investment funds are considering the investment. While Nigeria’s oil and gas sector has a rather dubious reputation, the country’s on and offshore reserves are vast and produce the right crude qualities. At the same time, NNPC’s reserves and projects are seen as an access point for investors looking to other emerging markets in Africa. The NNPC will also be of interest to local investors or operators such as Oando. The divestment and retraction of Shell, Total, and others from Sub-Sahara, especially from Nigerian offshore, has opened up new opportunities for incumbents or new investors, such as Aramco and ADNOC.
Nigeria Looks To Ramp Up Its Oil Refining Capacity
By Tsvetana Paraskova - Oct 07, 2020, 1:30 PM CDT
Nigeria, Africa’s largest crude oil producer and exporter, expects to end its crude-for-fuel swap deals by 2023 when its refining capacity is set to increase with state refineries revamped and a new refinery built, Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), said.
Nigerian refineries, which are in need of refurbishment, will be fully revamped and running by 2023, Nigeria’s ThisDay outlet reported, quoting Kyari as speaking at a virtual refiners’ conference this week. The private refinery of Nigerian billionaire Aliko Dangote is also expected to be operational by then, Kyari said.
“I don’t see an extension of that process in the near future as we progress and transit into more production locally. Our plan is to deliver all of them by 2023,” NNPC’s top executive said, referring to the crude-for-product swap deals.
Since 2016, Nigeria has been running the so-called Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) program with major oil traders and international oil companies, aimed at ensuring fuel which Africa’s biggest crude oil producer cannot process domestically.
At the same conference this week, NNPC’s Kyari said that “The outlook for Nigeria's downstream sector looks bright with attractive market conditions, large market, significant crude distillation capacity additions from various refinery projects, improvements of the distribution network & the use of natural gas.”
Related: Oil Majors Hit Hard By Canada's Energy Stock Selloff
“The rehabilitation exercise involves working with Globally Reputable Engineering Procurement and Construction Companies (EPCs) to revamp the existing refineries to operate at world-class capacity utilization levels,” he said.
Last month, Kyari said that NNPC was in talks to hand over the majority stakes in Nigeria’s four refineries, which are all in dire need of an upgrade.
Nigeria has four refineries, two in Port Harcourt, and one each in Warri and Kaduna, but all refineries are very old and in need of refurbishment. Over the past five years, utilization rates at those refineries haven’t exceeded 30 percent.
By Tsvetana Paraskova for Oilprice.com
If Essar did sell their 20% stake for cash , what do you think its worth or what do you think they would accept . I kind get the feeling that they may want cash for it rather than royalties.
I doubt if NNPC will act on essar - other fish to fry and reduction agreed to their oil output
-OPEC members Iraq, Nigeria agree to cut oil output Reuters CommoditiesSep 12, 2019 07:42AM ET
Just saw this as well
Chinese investments in the oil and gas industry of Nigeria have reached US$16 billion, according to a senior NNPC official, but the industry needs even more to advance its production growth agenda. Vanguard quotes NNPC’s Group Managing Director Malla Mele Kyari as saying “To have investment of $16bn in Nigeria is clearly an indication of your confidence in us. We have a target to grow production to 3m barrels per day by 2023, to do that, we need partners like you. You can count on us because we have common interest.”
The comments were addressed to the management of CNOOC, the third-largest state oil major in China and a company focused on overseas investments. These have become essential for China as domestic production declines due to natural depletion and challenges surrounding the development of new reservoirs, including shale plays.
Nigeria is a natural focus for investments despite problems with militant groups that have in the past few years caused several force majeure closures of pipelines and export terminals.
Earlier this year, Nigeria’s oil operations were disrupted several times due to fires, shutdowns, force majeure, and protests. In April and May, a key oil pipeline and a logistics base in Nigeria’s oil-rich Niger Delta were rocked by a shutdown and protests in the latest incident that disrupted the Nigerian oil industry.
Shell declared a force majeure on Bonny Light exports, while exports of Amenam, operated by France’s Total, were also under force majeure in April.
Nigeria is one of OPEC’s largest producers, with the June average at 1.855 million bpd, according to the secondary sources that OPEC uses for its monthly oil market updates. The country was against the OPEC production cuts agreed last December because it needed to recover its production after a truce agreed with some militant groups in the Niger Delta. Eventually, however, it agreed to join the cuts.
Morning. Mostly all still here except the “Special Ones “ who it seems may have created their own group . If people are really unhappy about AM then send an email to the FCA and complain . I know AIM is not the best regulated but certainly not the worst . If the FCA get enough complaints that have some substance that covers their control they will investigate and maybe that’s all that’s needed to remind COPL If it’s responsibilities in terms of updating the whole market with pertinent information - good and bad or distributing it to a select few investors .
https://www.fca.org.uk/markets/ukla/regulatory-disclosures/mar-implementation
Have a good one .
I really am going for a coffee but . I did with some on a rise in Copl and got a little bit of my losses back but still under water with a couple mill shares bought at a low . If they ever go into profit will sell them . I have no problem admitting I could be wrong . Just advise EXTREME caution on COPL . Coffeeeee
Problem is Shibs we don’t know how many are on the team do we . No data in financial reports just a heading -all the raises could be just paying Art and Cathy and the others could be on a retainer or contracted as and when necessary . He won’t clarify that though as it’s giving too much ammunition away
Had a lie in this morning as I’m on holiday , but at home . Sun shining in through the window . Yawn reach for my phone and check the stock portfolio first . Up 3.5k mmm that’s Good Eco Atlantic on the rise and DGOC creeping up as well .
Then there’s Copl . What a surprise - not - I’ve not read the RNS just the title . Rhubarb Rhubarb Rhubarb blah blah blah .
I’ve lost on stocks like this before - fizzle to nothing on empty repeated promises, then lights out. We are all adults though - most of the time — so we take full responsibility for our actions . It’s a gamble . Most of the stock markets dumped in some shape or form thanks mainly to the Fat Orange Wonder in America . So we are not alone in loosing money . Even the professionals have bombed .
As another poster mentioned China is on the rise in Nigeria and they will get the priorities and sad to say but I have Zero confidence that Art can deliver anything apart from placings . His credibility is shot and COPL is living on the hopes that investors can make some money back on huge losses and that they will never forgive themselves if this comes good and they sold at a loss . No Official information means we string ourselves along .
There are reasons why this has not progressed and they are not the vague “Africa Time / Elections/Litigation/ rubbish that he Allegedly passes out privately to some posters on here . I do not trust any “Private email/ conversations” If he can’t get it over the line there are real reasons but he won’t post them on an RNS as it will be the end . He can’t raise Alt finance possibly as he has no credibility , can’t raise the bond money and Kola won’t chip in or simply NNPC are stringing him along and there is no relationship between Kola and new Power in Nigeria . We can all speculate but Arts track record with Copl is frankly abysmal . Africa is Not the North Sea.
And just to drive it home to anyone who isn’t paying attention. This is not proven oil . OPL226 is only worth what the speculative -“ indicative of oil” tests and surveys indicate could be there . Not Proven .
So To finish off our views and comments on here don’t affect the share price but do influence some buyers or sellers in some way either negatively or positively . I’m not in the game of bigging up or dragging down a stock This to me is an EXTREME CAUTION stock likely to have been a complete waste of time . Now time for a shower and coffee . Have a good one .