Page 6 - AfrOil Week 39 2019

AfrOil INVESTMENT AfrOil
NIGERIA
the next two or three years. He did not say how it might reach this target or how rising output might affect relations with OPEC.
As a member of OPEC, Nigeria is party to the agreement signed between the cartel and Russia, along with other allied oil producers, last December. Under that agreement, which is due to remain in force until March 2020, Nige- ria is due to help OPEC meet its pledge to cut oil production by 800,000 bpd on end-2018 levels. But according to a Reuters survey, it exceeded its quota by 265,000 bpd in September. This was the largest gap posted by any cartel mem- ber during that month, the news agency com- mented. ™
NNPC head Mele Kyari (Photo: NNPC)
In an interview with Bloomberg, he said Nigeria LNG had already begun talks with commercial lenders – including major Nigerian banks such as Zenith Bank and Guaranty Trust Bank – with
the intent of securing $2bn worth of loans. The group hopes to attract the remaining $8bn from foreign banks and export credit
agencies, he said. ™ PERFORMANCE
NNPC chief comments on Nigerian compliance with OPEC production policy
MELE Kyari, the group managing director of Nigerian National Petroleum Corp. (NNPC), confirmed on October 1 that his country was not fully compliant with OPEC’s production policy. He stated, though, that his country intended to take steps to ensure its compliance.
Speaking to the press at a conference in Fujairah, Kyari noted that Nigerian fields had yielded 2.1-2.2mn barrels per day (bpd) of crude oil and gas condensate in the month of September. Going forward, he said, Nigeria will trim oil output in order to conform to the pro- duction quotas set by OPEC.
The NNPC chief did not say exactly what the country would do or how large the cut would be. He did stress, though, that the reductions would apply to crude oil and not to condensate.
“We will [cut output] across the assets. The OPEC quota [applies to] crude production only, not [to] condensate, so it doesn’t affect the condensate [figures],” he said.
He also stated that he did not expect the reductions to have a major financial impact on Nigeria. “Our non-conformity is clearly on the crude, and it’s not significant,” he said. “So when you spread it across all the assets, it will not be a shock.”
Kyari went on to say that Nigeria hoped to push oil production up to around 3mn bpd over
POLICY
Mozambique will seek $880mn
in capital gains tax from Anadarko
MOZAMBIQUE
MOZAMBIQUE’S President Filipe Nyusi hopes that US-based Occidental Petroleum’s takeover of Anadarko Petroleum, another US firm, will generate extra tax revenue for his government.
Nyusi said last week that Maputo intended to collect capital gains tax from Anadarko because that company had sold its Mozambican assets to Total after agreeing to the buyout deal with Occidental earlier this year. (See: “Total closes
the acquisition of Anadarko’s shareholding in Mozambique LNG, page 9.)
Maputo expects the US company to pay $880mn, he said.
The president was speaking after meeting with representatives of Total and Occidental in the city of Chimoio. As of press time, neither company had commented on his remarks.
This is not the first time Mozambique’s gov- ernment has issued such a demand.
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w w w . N E W S B A S E . c o m Week 39 02•October•2019