• 2 hours OPEC, Russia Said To Announce Oil Pact Extension On Nov 30
  • 5 hours Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 7 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 9 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 11 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 12 hours OPEC Set To Move Fast On Cut Extension Decision
  • 14 hours Nigeria Makes First Step Away From Oil
  • 1 day Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 2 days Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 2 days Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 3 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 4 days Whitefish Energy Suspends Work In Puerto Rico
  • 4 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 5 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 5 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
Oil Major: 70% Of Crude Can Be Left In The Ground

Oil Major: 70% Of Crude Can Be Left In The Ground

Oil major Statoil has surprised…

Energy Majors Hit Hard By Climate Regulations

Energy Majors Hit Hard By Climate Regulations

Siemens and General Electric have…

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