COVID-19, IOC, Operations
Bonny Light

By Udeme Akpan

THE price of Bonny Light, Nigeria’s premium oil grade, has risen to $81.81 per barrel in the global market, as the Organisation of Petroleum Exporting Countries, OPEC, moves to achieve market stability.

This showed $19.81 per barrel in excess of the $62 per barrel reference price of the 2022 budget, which was also based on 1.8 million barrels per day, bpd, excluding Condensate that Nigeria has the capacity to produce between 300,000 bpd – 400,000 bpd.

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Despite the negative impact of Omicron, some analysts still expect the global oil market to remain relatively stable in 2022.

In his remarks at the 24th OPEC and non-OPEC Ministerial Meeting (Videoconference), yesterday, OPEC Secretary General, Mohammad Barkindo, said: “The dawning of a New Year is usually cause for hope and optimism for the twelve months ahead. In the case of 2022, this outlook correlates with a generally positive trajectory with regard to market fundamentals.

‘‘While there are some uncertainties, particularly related to mutations of the Coronavirus, there are signs that the global economic recovery, supported by the contribution of the ‘Declaration of Cooperation’ Participating Countries to oil market stability, can continue in the year ahead.

“Demand for OPEC crude in 2021 stands at 27.8 mb/d, around 4.9 mb/d higher than in 2020. The forecast for demand for OPEC crude in 2022 stands at 28.8 mb/d, around 1.0 mb/d higher than in 2021.

“The potential implications of large uncertainties on global oil demand and supply during 2022 are highlighted in the scenario analysis and will be further elaborated in the presentation given by the Research Division.”

In his budget address to the National Assembly, President Muhammadu Buhari had said: “Based on these fiscal assumptions and parameters, total federally-collectible revenue is estimated at 17.70 trillion Naira in 2022.

“Total federally distributable revenue is estimated at 12.72 trillion Naira in 2022 while total revenue available to fund the 2022 Federal Budget is estimated at 10.13 trillion Naira. This includes Grants and Aid of 63.38 billion Naira, as well as the revenues of 63 Government-Owned Enterprises.”

“Oil revenue is projected at 3.16 trillion, Non-oil taxes are estimated at 2.13 trillion Naira and FGN Independent revenues are projected to be 1.82 trillion Naira. A total expenditure of sixteen point three-nine (16.39) trillion Naira is proposed for the Federal Government in 2022.”

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