• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days If hydrogen is the answer, you're asking the wrong question
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Editorial Dept

Editorial Dept

More Info

Global Energy Advisory – 31st July 2019

oil

Eni’s Problems in Nigeria Aren’t As Big As They Seem

Yes, Nigeria’s state oil firm (NNPC) has admitted that it stopped making payments sto Eni three months ago; and yes, the NNPC is planning to let some of Eni’s oil licenses expire and taken them over itself. Should shareholders be concerned?

No, and here’s why, according to our experts on the ground:

The licenses aren’t core, and the spending issues are par for the course for this type of JV set-up.
On July 24, the NNPC’s newly appointed Group Managing Director, Mele Kyari, received a delegation from Eni and its Nigerian unit, Agip, led by Executive Vice Chairman for Sub-Saharan Africa, Brusco Guido. During those discussions, the issue of expired oil-exploration and production licenses held by international energy companies came up, with Eni making a case for renewal. Kyari told the Eni team that there was no immediate plan to renew the licenses.

Nigeria issues two main types of oil licenses: 1) the Oil Prospecting Lease (OPL), usually issued for about five to seven years for exploratory drillings and other activities in the search stage; 2) the Oil Mining Lease (OML) for exploitation (production and export), usually lasting for about 20 years. While it is not clear whether the licenses in question are OPLs or OMLs, they are among more than two dozen licenses that have expired in recent years.

Last year, the Department of Petroleum Resources renewed…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News