• 4 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 9 minutes Could Venezuela become a net oil importer?
  • 15 minutes Oil prices going Up? NO!
  • 7 mins The Tony Seba report
  • 2 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 34 mins Harley-Davidson "Made in EU"
  • 28 mins Could Venezuela become a net oil importer?
  • 2 hours Erdogan After Erdogan: New Presidential Mandate After Yesterday's Elections
  • 1 hour The U.S. Will Soon Give North Korea a Timeline of 'Specific Asks
  • 12 hours Kenya Eyes 200+ Oil Wells
  • 6 hours LNG Shortage on the Way
  • 11 hours Are Electric Vehicles Really Better For The Environment?
  • 4 hours Sell out now or hold on?
  • 20 hours Saudi Arabia turns to solar
  • 16 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 1 day Oil prices going Up? NO!
  • 3 hours No LNG Pipelines? Let the Trucks Roll In
  • 28 mins China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 12 hours OPEC soap opera daily update
Goldman: Expect Another Bull Run In Oil

Goldman: Expect Another Bull Run In Oil

While oil prices are tumbling,…

Global Energy Consumption Soars To New Heights

Global Energy Consumption Soars To New Heights

The new BP Statistical Review…

S&P Cuts Nigeria Ratings As Low Oil Output Plagues Economy

oil rigs

Standard & Poor’s Global Ratings has further downgraded Nigeria’s sovereign credit rating to ‘B’, five levels below investment grade, citing a significant decline in oil production, restrictive forex policies, and delayed fiscal incentives.

S&P now expects Nigeria’s real GDP to contract by 1 percent this year, grow by 2 percent next year and resume a more solid growth of 4 percent “only from 2018”.

S&P’s downgrade comes as Nigeria plans to issue US$1 billion Eurobond this year, with all bids required to be placed by noon Nigerian time on Monday, September 19. The issue is part of a US$4.5-billion Federal Government Medium Term Note (FGMTN) program for 2016–2018.

Nigeria’s economy has suffered from lower crude prices, as oil sales are one of the country’s primary revenue sources. In addition, militant attacks on oil infrastructure have deprived it of significant part of oil production and its output has dropped by some 700,000 barrels per day to 1.56 million bpd.

S&P reckons that oil production may increase in the last quarter of the year amid the government negotiating with militants and sabotaged pipelines being fixed.

However, even if the notorious Niger Delta Avengers (NDA) agreed to a conditional ceasefire in August and agreed to halt hostilities later, other militant groups continue to attack pipelines. Just last week, a group that had refused to be part of the ceasefire attacked oil infrastructure in the Niger Delta.

On the positive side for Nigerian output, but on the negative side for the global oil glut, there are signs that Nigeria would raise its production. Exxon is reportedly ready to load its first Nigerian Qua Iboe crude since it declared force majeure on these exports in July, while Shell has lifted its force majeure on Bonny Light crude.

By Tsvetana Paraskova 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