Nigeria finally enacted a long-delayed law cutting taxes levied on energy companies to more globally competitive levels, in its push to increase Oil production more than 2X by 2025 (!).
Something that is quite doubtful that it could be achieved: To almost triple production in just over three years!?!
Production royalties will now range from 5% to 15%, depending on where fields are located, down from the previous range of 7.5% to 20%.
Nigeria currently pumps about 1.5 million barrels of oil a day. That's down from a peak of 2.5 million in 2005.
The decline is attributed to a lack of investment in new wells, oil theft and its adherence to quotas set by OPEC.
The country attracted just 4% of the $70 billion committed to Africa's oil and gas sector from 2015 to 2019, partly due to uncertainty over its regulatory environment, according to accounting firm KPMG.
President Muhammadu Buhari's administration is banking on an influx of capital to boost production to 4 million barrels a day by 2025. Any such increase could cause heat with other members of OPEC+, which limits supply to keep prices up. —And is quite doubtful it could be achieved in just over three years!?!
See the whole article on Bloomberg here: Nigeria Races to Extract Its Oil Before It's Too Late -https://www.bloomberg.com/news/articles/2021-09-02/nigeria-races-to-extract-its-oil-before-it-s-too-late-quicktake?
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