Local, foreign oil firms gain N3.6 trillion in price recovery

Five local and International Oil Companies (IOCs) operating in Nigeria witnessed a record-breaking profit of over $10 billion (N3.6 trillion) during the first quarter of 2017.

This significant performance has been attributed to the improvement in the prices of crude oil, which increased to less than $30 in 2014 and 2016.
Brent crude oil stood at $51.73 yesterday while West Texas Intermediate (WTI) was $49.33.

Global oil prices have fallen sharply over the past three years, leading to significant revenue shortfalls in many energy-exporting nations such as Nigeria.

However, Oil and Gas Trainers Association of Nigeria (OGTAN) and the Petroleum Technology Association of Nigeria (PETAN) have mobilised over 2,000 visitors and exhibitors to the Offshore Technology Conference (OTC) in Houston, Texas, to promote Nigeria’s oil sector.

OGTAN’s president, Dr. Mayowa Afe, said the association’s plan was to enable members interact with international training organisations with the aim of partnering with them to domesticate more oil and gas trainings in Nigeria.

Specifically, Nigeria’s crude oil revenue decreased from $85 billion in 2013 to $41.8 billion in 2016.

Chevron Corporation reported earnings of $2.7 billion for first quarter of this year, compared to a loss of $725 million in same quarter in 2016.  Also, Exxon Mobil Corporation announced an estimated first quarter 2017 earnings of $4 billion, compared to $1.8 billion a year earlier, resulting from improvement in commodity prices, cost management and refining operations.

Chairman and Chief Executive Officer, Patrick Pouyanne, said that Total’s adjusted net income increased by 56 per cent to $2.6 billion in the first quarter 2017, in line with the strong recent quarterly results of 2016, due to good operational performance and a steadily decreasing breakeven.

Another operator, Seplat Petroleum Development Company, said that in its first quarter 2017 result, it made a gross profit of $19.1 million, during the period under review.

It’s Chairman and Executive Officer, John Watson, noted: “We benefitted from increasing crude oil prices and ongoing efficiencies being implemented across the company. We continue to make good progress on reducing our spending.”

Also, Chairman and Chief Executive Officer of Chevron, Darren Woods, attributed the company’s outstanding performance to increase in commodity prices and the company’s continued focus on controlling costs and operating efficiently.

Speaking on the improvement of crude oil prices at the 18th International Oil Summit, Secretary-General of Organisation of Petroleum Exporting Countries (OPEC), Mohammad Sanusi Barkindo, said between June 2014 and January 2016, the OPEC reference basket price fell by an extraordinary 80 per cent.