Oil Price fluctuates in Nigeria`s oil and gas sector

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With the exception of a huge calamity in the producing regions, crude oil could no longer reach $ 100 a barrel on the international market, Nigeria's Minister of State for Petroleum Resources, Ibe Kachikwu disclosed.

It does not matter in the oil and gas sector, "Oil will no longer be $ 100 a barrel, except that there is a huge calamity on the North Korean Peninsula and so we will probably continue to remain depressed at $ 60- $ 70, but even there, 'is a huge move, from where we were,' said Mr Kachikwu in Lagos at the Samsung Yard where the $ 3.3 billion Floating Production Storage Offloading (FPSO) is integrated by Samsung Heavy Industries (SHI) at LADOL Free Zone.
Mr. Kachikwu, who argued that such a situation could not happen, said: "What this tells us is that Nigeria will start to consider its priorities differently."
"We are going to look at the net worth for the country in these future projects. As a country, we are not very impressed by the PSCs; we have put in. We are losing a lot of money in the contracts," he disclosed.

The minister added that only oil and gas projects with huge net worth on behalf of the Federation will now be sanctioned by the federal government.

There is no need for international oil companies (IOCs) to develop multi-billion dollar projects that will not attract royalty payments to the government.
Thisday reports that the minister said that with the price of depressed oil at $ 60 - $ 70, coupled with the production quota imposed by the Organization of the Petroleum Exporting Countries (OPEC), Nigeria would begin to look at its priority in a different way.

In oil and gas sector, “Nigeria has lost a lot of money in some of the previous production sharing contracts (PSCs)”, said Mr. Kachikwu, adding that no single royalty has been paid in some of these projects.
The state minister said he had worked hard to keep Nigeria's production in the OPEC quota, adding that the country would focus on projects where it would earn more money.

He said, "So when you look at your numbers, when you look at the conditions in which you want to develop these fields, please spend a lot of time checking the bottom line and what is going in the Federation account."

In the oil and gas sector, "there is no need to build a huge $ 70 billion facility - as an area I watched as I felt really pained that no single royalty was paid for one reason or the other. That sort of thing will not happen anymore, the terms will change. "




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