Oil crash: FEC slashes 2020 budget by N1.5trn

…embargoes recruitment, maintains workforce Owing to dwindling resources available to the Federal Government due to the crash in the price of crude at the international market, the Federal Executive Council (FEC) has announced a slash of the 2020 budget by N1.5 trillion. Briefing State House Correspondents after the weekly Council meeting chaired by President Muhammadu Buhari yesterday, the Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed that the government has also resolved to embargo recruitment into the civil service. She equally clarified that the government was not considering…

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Mass sack, investment cuts loom as price rout shatters oil industry

The foreign and local oil firms, yesterday, perfected plans for mass disengagement of workers and slash in investments as parts of measures to mitigate the effects of price rout rocking the global market. The rout, buoyed by spread of Coronavirus and the price war between Saudi Arabia and Russia, crashed the price of oil to as low as $30 per barrel on Monday and it had, according to checks by this newspaper, became a major threat to the oil multinationals’ multi-billion dollars businesses in Nigeria and across the World. The…

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Oil theft: Military accuses IOCs of sabotage

Operation Delta Safe, a military operation launched in 2016 by the Chief of Defence Staff, Gen. Gabriel Olonishakin to protect oil facilities and installations in the Niger Delta, has accused major oil producing companies in the country of sabotaging their efforts to checkmate oil theft. Theatre commander of the operation, Air Vice Marshal A. Akirinade who made the allegations at an investigative hearing organised by the House of Representatives’ ad hoc committee on oil theft yesterday in Abuja, said the international oil companies (IOCs) are the major reason why oil…

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Coronation Research: Oil price crash, defining fx risk factor

The recent slump in the prices of crude oil, occasioned by the impact of the coronavirus, has made analysts at Coronation Research to place under review, their core view, to wit, that the  Central Bank of Nigeria (CBN)  will be able to hold  the current interbank rate of N365.91/US$1, “for most, if not all of 2020.” The analysts stated this in a report obtained by New Telegraph yesterday. As the analysts put it: “We began this year with the view that the Naira / US dollar exchange rate could hold…

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Coronavirus: Oil and gas stocks down N60bn in February

Shareholders in oil and gas companies quoted on the main and premium boards of the nation’s stock market recorded a loss of about N59.618 billion in February 2020 following panic sales that have persisted in the equities market  as coronavirus ravages the world. Investigation by New Telegraph showed that the oil and gas sub-sector recorded a loss of N59.618 billion or 11 per cent to close at N481.802 billion in market capitalisation on February 29, as against opening figure of N541.420 billion at the beginning of trading on February 2.…

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Foreign financiers halt investment in Nigerian oil fields

…cut $2.7bn annual revenues flow   Foreign financiers have embargoed investments in three Nigerian deep offshore oil fields, cutting $2.7 billion annually off revenue accruable to the country. Global oil consultant, Wood Mackenzie, said in its latest report sighted yesterday that Nigeria also risked 35 per cent oil output slip without reforms. Cost increases and uncertainty in Nigeria’s crucial energy sector could lead to cut down in oil output over 10 years as companies delay investment in key oilfields, the new research due to be published today read. Wood Mackenzie…

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Oil falls to $58 over Coronavirus Worldwide spread

The global oil market was yesterday hit by the spread of Coronavirus, dipping the price of crude oil, major revenue earner for Nigeria, to $58 per barrel. Nigeria, Africa’s biggest exporter of crude depends largely on proceeds from the commodity to service over 80 per cent of its revenue. With the country’s revenue taking the hit on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, the Organisation of Petroleum Exporting Countries (OPEC) hinted on yesterday of a plan to drag its scheduled meeting from…

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Oil slips as concerns over US-China trade talks drag on

U.S. oil prices fell for the second straight day on Tuesday amid market jitters over limited progress between China and the United States on rolling back trade tariffs, while expectations of a rise in U.S. inventories also jangled nerves. West Texas Intermediate (WTI) crude CLc1 dropped 32 cents or 0.56% to $56.73 a barrel by 0803 GMT, slipping further away from an eight-week high hit last Friday when hopes for the trade deal rose. Brent crude futures LCOc1 were down 26 cents, or 0.42%, at $62.18 a barrel, reports Reuters.…

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DISCOVERY OF OIL IN NORTH: Jubilation as ‘heavy machines’ move to site

Following the discovery of hydrocarbon of both gas and oil in Kolmani River 11 of the Barambu exploration site in Alkaleri Local Government Area of Bauchi State by the NNPC, the host communities have erupted in jubilation as ‘heavy machines’ move to site ahead of oil exploration in the North. However, residents of host communities stated that they didn’t want to experience what is happening in Niger Delta where decades of oil exploration have led to massive environmental degradation. Expressing joy over the proposed oil exploration, a resident of one…

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Oil drops after three-day rally amid economic growth concerns

Oil prices declined on Friday after three straight days of gains, as gloomy economic growth forecasts renewed concerns over the outlook for demand. Brent crude LCOc1 was down 36 cents, or 0.6%, at $61.31 by 0318 GMT. Having risen nearly 1% on Thursday, the global benchmark was still set for a weekly gain of more than 3%. West Texas Intermediate (WTI) crude CLc1 was down 35 cents, or 0.6%, at $55.88. The U.S. benchmark rose 0.5% in the previous session and was on track for a weekly gain of 4%,…

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