• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 5 hours OPEC Cuts Deep to Save Cartel
  • 2 hours Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 7 hours Price Decline in Chinese Solar Panels
  • 46 mins What will the future hold for nations dependent on high oil prices.
  • 8 hours And the War on LNG is Now On
  • 11 hours Alberta Cuts Push Prices Too High
  • 1 day Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 37 mins U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 1 hour How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 3 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 8 hours Rigs Down
Will Self-Driving Cars Ever Be Safe Enough?

Will Self-Driving Cars Ever Be Safe Enough?

Collisions involving self-driving cars are…

Geopolitical Stakes Are Huge On This Tiny Island

Geopolitical Stakes Are Huge On This Tiny Island

From both a geopolitical and…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Nigeria’s Oil Refinery Capacity Set For Much-Needed Increase

Refinery

Despite being Africa’s largest crude oil producer, Nigerian refining capacity is low, which forces the government to spend foreign currency reserves on purchases of refined oil goods. Building new refineries within the country’s borders would allow Lagos to revitalize aging oil facilities while preserving foreign currency resources.

By 2019, Nigeria plans to process in-country all fuel needed for domestic consumption.

"We reached an agreement that Agip will build a brand new refinery of 150,000 barrel capacity,” Emmanuel Ibe Kachikwu told reporters following a summit with Eni this week. The two parties will soon sign a memorandum of understanding to seal the deal.

Nigeria’s oil industry and economy have been suffering badly, not only from the low oil prices but also from the persisting militant attacks on oil infrastructure that have crippled crude oil production. The sabotages reduced Nigeria’s output from more than 2 million bpd at its highest point in 2015 to 1.4 million bpd last summer, the lowest production level in 30 years. The militant groups have slowed attacks in recent months, allowing output to recover marginally.

Due to the domestic strife, Nigeria was exempt from the OPEC production-cut deal, but since the cartel struck the agreement at end-November, Nigeria has been gradually lifting output, possibly undermining efforts by fellow OPEC members who are trying to keep supplies low.

Related: OPEC Confident In U.S. Shale’s Lack Of Longevity

Nigeria has learned from the 2.5-year supply glut that has pulled down oil prices to $50 levels. The country reduced the unit technical cost (UTC) for producing oil to $27 per barrel by the end of 2016 from $70 per barrel in 2014, according to Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC).

“With reduced cost of production, govt’s share of economic revenue will improve which means reduced budget deficit,” NNPC said on Twitter in updates of Baru’s speech.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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