A new report by Financial Derivatives Company Limited has indicated that Nigeria’s oil and gas industry loses as much as $15 billion in investments annually due to the delayed passage of the Petroleum Industry Bill , currently before the National Assembly.
It said it was unlikely that Nigeria would be able to make up for either the lost time or the lost investment, adding that information available to it suggests that the bill is currently undergoing last-minute modifications in three key areas to enhance its effectiveness. On the NNPC’s public offer, it stated that selling shares to the public will mean that the corporation will be able to source its own funding and come under a higher level of corporate governance and scrutiny.
“While this will bring relief to the state governments that have been grappling with lower revenues, the chance of the federal government allowing such a spike in the near term is slim because of the negative impact on the poor. “The IOCs have stated that Nigerian onshore business is incompatible with their long-term strategy, which focuses on climate change and net-zero carbon emissions by 2050,” the FDC document said.
“What will happen to Shell’s onshore assets? Are they going to be acquired by the NNPC through its upstream arm, Nigerian Petroleum Development Company or does the government invite bids from indigenous and foreign producers? April production stood at 1.460mbpd and it was 1.388 barrels per day in May, leading to the loss of 72,000 daily barrels during the month.
“In May 2021, production was up by 0.39 mb/d m-o-m. Crude oil output increased mainly in Saudi Arabia, Venezuela and Iran, while production decreased primarily in Nigeria and Angola,” OPEC said. It said the country registered the second consecutive quarterly growth since Nigeria’s economy faced recession in the third quarter of 2020, amid the easing of COVID-19 restrictions and an improvement in oil prices.
But OPEC stuck to its prediction of a strong world oil demand recovery in 2021 led by the United States and China despite uncertainties stemming from the pandemic, pointing to a need for more oil from the producer group.
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