By Udeme Akpan
THERE are indications that the price of oil, currently in excess of $60 per barrel, could rise further in the international market as Yemen has threatened another attack on Saudi Arabian oil facilities, after the first affected the production of 5.7 million barrels per day, bpd.
Yemen’s Houthi movement, which took responsibility for the recent attack, disclosed that Saudi Aramco’s oil processing plants remained its major target and could be attacked at “any moment,” warning foreigners to leave the area.
In his latest tweet, Houthi military spokesman, Yahya Sarea, said drones were deployed to execute the attacks on Aramco plants in Abqaiq and Khurais in the kingdom’s eastern region.
Already, a survey of the market by Vanguard, yesterday, showed that the price of Brent rose from $60.22 to $66.70, while West Texas Intermediate, WTI, rose from $55.10 to $60.45 per barrel respectively.
The United Arab Emirates’ Energy Minister, Suhail al-Mazrouei, said the nation was able to boost output to deal with any supply disruptions.
Speaking in a telephone interview with Vanguard ,yesterday, Director General, Lagos Chamber of Commerce and Industry, LCCI, Mr. Muda Yusuf, said Nigeria would not be in a position to make much revenue through additional export because of its current limited capacity.
He said: “We should know that Nigeria is not as big as some other oil producing and exporting countries. It should also be noted that many problems, including pipeline vandalism and oil theft still abound in Nigeria.”
Investigation by Vanguard, showed that it would be difficult for Nigeria to pump more oil to the market and generate much revenue at this time, apparently because of limited capacity.
With only 37 billion oil reserves and about 2.3 million barrels daily output, it would be impossible for Nigeria to produce and export additional oil in the short or medium term.
It was gathered the nation may struggle to export 2.5 million barrels, including condensate, which would not amount to significant revenue
Reacting, Organisation of Petroleum Exporting Countries, OPEC, said it was premature to react to the current oil market situation, adding that it was still assessing the impact on the oil market from attacks on Saudi Arabian facilities.
Before the attack on Saudi Arabia, OPEC, which has done a lot to eliminate excess supply from the market, stated: “Conformity with the voluntary production adjustments remains high, 136per cent in the month of August.
However, the JMMC reemphasized the core principles underpinning the DoC, namely, equity, fairness and transparency, and urged all participating countries to intensify their efforts in pursuit of full and timely conformity with their voluntary production adjustments.
“All participating countries present, particularly those who are yet to reach full conformity with their adjustments, were unequivocal in providing steadfast assurances of their determination to achieve at least 100per cent conformity for the remainder of the year. Those countries who have over-conformed also reiterated their voluntary contribution. Resultantly, overall conformity will be brought to record levels. The JMMC observed the recent decline in OECD commercial stock levels, particularly in the US, although they remain above the five-year average. It was also noted that all major benchmarks are now in backwardation.”
In a telephone interview with Vanguard, the chairman, International Energy Services Limited, Dr. Diran Fawibe, called for the urgent diversification of Nigeria’s oil-dependent economy.
Fawibe, who cited the case of NLNG train 7, said: “The project is a very good example of economic diversification with many multiplier effects on Nigeria’s economy.”
The executive secretary, Nigerian Content Development and Monitoring Board, Simbi Wabote said: “The execution of the Nigeria Liquefied Natural Gas (NLNG) Train 7 project will at its peak create over 40,000 direct and indirect jobs.
Similarly, the Managing Director of NLNG, Engr. Tony Attah added: “Train-7 will move from Front End Engineering Design (FEED) to detailed design, construction, commission and delivery and this phase will attract almost $7bn with an addition of the upstream scope of $10bn which will boost the foreign direct investment profile of Nigeria.”