Nigeria to lose 300, 000bpd as militants bomb three oil pipelines

The Niger Delta Avengers militant group said it has bombed three oil pipelines in southern Nigeria, an attack it said would lead to a production loss of 300,000 barrels per day in the OPEC-member nation.

Attacks on pipelines by several militant groups have slashed Nigeria’s oil production helping to tip the country into recession as it struggles to adapt to the low price of crude globally.
The Niger Delta Avengers, blamed for a wave of such attacks since the start of the year, said the latest bombing was to register its displeasure with way the government was handling grievances in the oil region.
“At about 11.45 pm November 15, 2016, our Elite Strike Team 03 struck Nembe 1, 2 and 3 truck line operated by Agip, Oando and Shell with supply capacity of 300,000 barrel per day to Bonny export terminal in Bayelsa State,” the NDA said in a statement late Tuesday.
“We are only reiterating our strong resolve that time is running (out) against the Nigerian government, that there is doom ahead,” it said.
“The Nigerian government needs our cooperation more than we need the government as it concerns the extraction of the crude oil and hydrocarbon resources in our God-given land,” it said.
There was no immediate confirmation of the attacks from the government.
Nigeria has deployed troops to end the renewed insurgency in the region and has initiated peace talks with the oil rebels.
But divisions between rival militant groups appear to be making it hard for the government to strike a lasting peace deal.

A 2009 amnesty deal with militants helped end sabotage, but the violence reignited after President Muhammadu Buhari’s cash-strapped government temporarily ended amnesty payments and charged a prominent warlord with graft.

AFP

Nigeria proposes broad oil sector overhaul, sale of stakes in NNPC

Nigeria outlined a plan to overhaul state oil company NNPC and eventually list it on the stock exchange in a bid to modernise and streamline an industry known for graft and mismanagement.

The ministry of petroleum released a draft late on Thursday to underpin industry reform stalled for a decade amid disagreements and political infighting over how best to manage the nation's energy resources.

The ministry seeks, in the proposal, to end the OPEC member's reliance on oil exports and shift to a "gas-based industrial economy," and said Nigeria needs to reform the oil sector or risk output falling.

"Unless there are additions to reserves and those reserves are brought into production, Nigeria can expect to see absolute declines in production from around 2020," the plan said.

As a key step to improve crude output of around 2 million barrels a day, Nigeria wants to transform NNPC from an bureaucratic empire where little work gets done into an entity functioning like the private sector.

"NNPC will be made autonomous from the state, it will relinquish all its policy making and regulatory activities, and it will be treated on an equal basis with private sector operators for projects," the draft said.

The West African nation has been mulling a sale of oil assets to raise hard currency as a slump in vital oil revenues has eroded the budget.   

The proposal said a newly formed corporation could sell stakes "so long as the government shareholder retains effective control and ownership." The listing itself is unlikely to happen soon, as foreign investors worried about a new currency devaluation have exited the Nigerian bourse.

The ministry said it will consult with lawmakers over the reform, but it faces serious challenges. Some members of parliament, including from the president's All Progressives Congress (APC), have objected to government plans to sell oil and other assets to raise hard currency.

"It's commendable that they have actually tried to make a petroleum sector policy," said Aaron Sayne, senior governance officer with the Natural Resource Governance Institute.
But he said the lack of details, specific targets and the backing of a broad coalition would make it difficult to achieve many of the aims.
"Where this is short on details is where the vested political interests are the strongest," he said. "It's not clear that it has the political support."
REFINERY REVAMP
The ministry's draft proposes a similar approach to spur investment in the nation's sclerotic refineries, allowing the closure or privatisation of them unless they can become profitable. It would also eliminate any remaining fuel subsidies and aim to deregulate fuel prices.
It also included placing more responsibility for oil spills and pollution on the companies operating them, including criminal "prosecutions of company directors where necessary."
The issue is sensitive for oil majors operating in the Niger Delta oil hub where militants and villagers fight for a greater share of oil revenues and higher compensation for oil spills.
Shell, one of the largest international companies operating in Nigeria, Chevron, and ExxonMobil declined to comment on the plan. ENI did not immediately respond to a request for comment.

- Reuters