• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 8 hours Satellite Moons to Replace Streetlamps?!
  • 1 day US top CEO's are spending their own money on the midterm elections
  • 2 hours EU to Splash Billions on Battery Factories
  • 5 hours U.S. Shale Oil Debt: Deep the Denial
  • 13 hours The Balkans Are Coming Apart at the Seams Again
  • 1 day OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 hour The Dirt on Clean Electric Cars
  • 6 mins Owning stocks long-term low risk?
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 15 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 10 Incredible Facts about U.S. LNG
  • 1 day U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
White House Shelves Coal Industry Incentives Plan

White House Shelves Coal Industry Incentives Plan

Troubled coal-fired power plant operators…

Nigerian Vice President Visits Niger Delta To Restart Peace Talks

Nigeria VP

Nigerian Vice President Yemi Osinbajo visited the Niger Delta on Friday in a move that could bring peace to the oil-producing region after almost a year of militant and separatist conflict, which has seriously stunted national energy output.

The African petrostate depends on oil exports for 70 percent of government revenues, but last year’s attacks by the Niger Delta Avengers and other related groups saw production drops anywhere from one-third to one-half of full capacity, depending on the time of year.

Due to the decreased output, Nigeria received an exemption from the Organization of Petroleum Exporting Countries’ (OPEC) recent deal to reduce output by 1.5 million barrels per day over the first six months of 2017.

The NDA and related groups argue against Lagos’ diversion of oil profits away from states in the Niger Delta, where funds are needed for further infrastructural and economic development. A previous attempt at peace had led to a short truce late last year, but ultimately failed.

"We seek to first to understand the problems and to offer solutions," Osinbajo said in the oil-producing state of Bayelsa. "Since the destruction began, Nigeria began to lose one million barrels per day and almost 60 percent of revenues have been lost to vandalization. You cannot destroy the sources of revenue and expect rapid development - development comes with revenue."

Related: Nigeria Rescues Oil Tanker From High-Seas Pirates

Nigeria has roughly 500,000 bpd offline because of security issues, Manji Cheto, senior vice president for West Africa at Teneo Intelligence, told Bloomberg. Local energy firms are confident that renewed efforts could make 2017 a comeback year for security in the Nigerian oil industry.

The government is already engaging the Niger delta inhabitants towards creating an enabling environment for us to drive our production back up,” Wale Tinubu, CEO of Oando Plc, a small Nigerian energy company, told Bloomberg. “I know for a fact we’re going to get an improvement.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News