NIGERIA: THE CRUDE OIL ECONOMY

Synterra the Nigeria Risk Management Consultants provide insight into how the oil markets affect the Nigerian economy. Nigeria's reliance on crude oil receipts is total. At a time of increasing volatility and uncertainty this blog seeks to provide an analysis of the effect the global energy markets have on business in Nigeria, their relationship with OPEC and how local policy decision making affects investment opportunities.
Vitol Admit Bribery

VITOL CONFESS TO USING BRIBERY TO WIN OIL CONTRACTS

Vitol are the largest global independent trader of crude oil and refined petroleum products. They also have a long established joint venture (JV) called Calson with NNPC based in the offshore tax haven of Bermuda. Their  intimate relationship with NNPC has seen them beneficiaries of supply contracts, including the infamous Direct Sal...

Nigerian-barrels Nigeria produces Condensates

OPEC BULLY NIGERIA INTO SUBMISSION

Nigeria have been brutally knocked back by OPEC in its attempt to maintain an exemption for its condensates production. OPEC are no longer prepared to exempt condensates counting toward its current quota. Specifically production from the Agbami field. The inescapable conclusion must be that it is now time for Nigeria to leave OPEC. The reality is t...

Nigeria-bush-refiners Illegal Refineries pproduce cleaner fuel

DPR STILL ALLOW IMPORT OF KILLER PMS INTO NIGERIA

 When the Stakeholder Democracy Network (SDN) an international non-governmental organisation broke the news, it re-exposed a racket that has been going on for years. Nigeria has been for a while the choice destination for dumping the worst, most carcinogenic, toxic refined petroleum products on the planet. Indeed such is the preponderance of o...

Lagos-traffic-jam Lagos rush hour traffic

DEREGULATION MUST SAVE NIGERIA TRILLIONS IN SUBSIDY WASTE

SYLVA MAKES THE CASE FOR DEREGULATION   A virtue signalling Minister of State for Petroleum Resources Chief Timipre Sylva in a statement recently released in Abuja was at pains to point out the economic benefits of deregulation of the downstream oil sector . The main thrust of his statement re-iterates arguments some of us having been mak...

pipelines Nigerian Refineries lose billio

NNPC CLOSE REFINERIES AFTER LOSING $503 MILLION ANNUALLY

When it first emerged the only surprise was that the Nigerian National Petroleum Corporation (NNPC) had for the first time in its history published audited accounts. The fact that this is an historic event says it all. The financial statements provide in part a snapshot of a poorly run organisation with many of its subsidiaries insolvent which was ...

SAUDIS FEEL THE HEAT AS THE U.S. UPS THE PRESSURE ON OIL

SAUDIS FEEL THE HEAT AS THE U.S. UPS THE PRESSURE ON OIL

Saudi Arabia  made what has been described as  a surprise announcement,  it will voluntarily deepen its crude oil output cuts. The announcement stated that this voluntary output cut would take effect from June.

The cut is an additional  1 million barrels per day which will reduce Saudi  production to the lowest level in 18 years. The ostensible reason given by the Saudis is to  hasten  a recovery from the crash in oil price benchmarks which has pitched them  into austerity. According to Energy Minister Abdulaziz bin Salman Al Saud, Saudi Arabia wanted to be ahead of the curve.

IMF LOAN AT A STEEP COST TO THE NIGERIAN MASSES?

IMF LOAN AT A STEEP COST TO THE NIGERIAN MASSES?

The IMF have approved   US$3.4 billion in emergency financial assistance to the Nigerian Government  under the Rapid Financing Instrument to support the authorities’ efforts in addressing the severe economic impact of the COVID-19 shock and the sharp decline in oil prices. The funding is a loan which attracts low interest and needs to be paid back  within 5 years.

POOR NIGERIANS RESILIENCE TESTED YET AGAIN AS OIL PRICE COLLAPSES

POOR NIGERIANS RESILIENCE TESTED YET AGAIN AS OIL PRICE COLLAPSES

Nigerians have been told they are resilient, as if they have a choice. A flattery conceived to beguile the masses   living in abject poverty. Often repeated  by a well fed political class that have garnered enough wealth to insulate themselves from the harsh vagaries of the Nigerian existence. 

BONNY LIGHT SLUMPS TO $12 DESPITE OIL MINISTERS PREDICTION

BONNY LIGHT SLUMPS TO $12 DESPITE OIL MINISTERS PREDICTION

Bonny Light the most recognisable and one of the most sought after Nigerian crude grades last week  traded at $12 per barrel.  The low sweet flagship Nigerian crude had up until last month historically traded at a premium to dated Brent. Bonny Light has become emblematic of the fate of light sweet crude grades that yield high cuts of transport fuels in a world in lockdowns.

Synterra Energy Assets
72 Newman Street, London W1T 3EH
+44 788 084 2065
tex@synterra.co

Search