Saudis’ Oil Price War Is Paying Off

(source: bloomberg)

Three months after Saudi Arabia made clear it was going to let oil prices keep tumbling, the strategy is showing signs of working.

U.S. drillers are idling rigs at a record pace, gutting investment plans and laying off thousands of workers.

Those steps highlight how the Saudi-led OPEC decision on Nov. 27 to maintain output levels and protect its market share is having the desired effect -- pushing prices down so far that they threaten to curb output in the U.S. and other non-OPEC countries. Saudi Arabia, the most powerful member of the Organization of Petroleum Exporting Countries, will maintain that tack when the group next meets in June, according to some of the world’s biggest banks.

The strategy “is working,” Francisco Blanch, head of commodities research at Bank of America Corp. in New York said by phone. “It is having the effect that we would expect, which is a decline in investment and ultimately supply, and somewhat higher demand. We think this change is for good.”

The number of rigs drilling for oil in the U.S. dropped by 37 last week to 1,019, the fewest since July 2011, data from Baker Hughes Inc. showed Feb. 20. Since Dec. 5, a total of 556 have been taken out of service. Oil explorers including Royal Dutch Shell Plc and Chevron Corp. have announced spending cuts of almost $50 billion since Nov. 1.

Transocean Ratings

Transocean Ltd., the world’s largest offshore driller, had its credit rating cut to junk Feb. 25 by Moody’s Investor Service on concern the company will increase debt levels while the drilling market deteriorates. It has about $9 billion of borrowings.

Oil has rebounded 14 percent in February, following a drop of more than 50 percent since June, in part because of the decline in drilling, which signaled supply growth will slow. Lower prices also spurred demand from bargain hunters, putting European benchmark Brent crude on track for its first monthly gain since June.

U.S. benchmark West Texas Intermediate for April delivery gained 67 cents to $48.84 a barrel in electronic trading on the New York Mercantile Exchange at 11:38 a.m. Singapore time. Brent added 73 cents to $60.78.

Demand is growing and markets are “calm,” Saudi Arabian Oil Minister Ali Al-Naimi said Feb. 27 in the Red Sea city of Jazan in the nation’s southwest.

U.S. oil production will cease its month-on-month growth in April because of the drop in the rig count, Marios Maratheftis, the Dubai-based global head of research for Standard Chartered Plc, said in Dubai on Feb. 23.

Slowing Output

The U.S. Energy Information Administration reduced its 2015 U.S. crude production forecast to 9.3 million barrels a day in February from 9.42 million in November. The EIA projects output will fall in the third quarter for the first time in four years.

“OPEC’s long-game strategy is on track,” Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London, said by e-mail. “It’s suffering short-term financial pain for long-term gain.”

There is a cost to OPEC, of course.

Oil’s plunge will reduce the group’s revenue by about 37 percent this year, according to the U.S. Energy Information Administration. Export revenues for 11 of OPEC’s 12 members, excluding Iran, will shrink to $446 billion in 2015 from $703 billion in 2014, the EIA estimates.

Saudi Arabia’s government said Dec. 25 that it expects a budget deficit in 2015 of 145 billion riyals ($38.7 billion), up from 54 billion in 2014.

Criticizing Saudis

The Saudi strategy has been criticized by Venezuela, which the International Monetary Fund estimates will suffer an economic contraction of 7 percent this year, and Iran, which the IMF says will be deprived of $48 billion of revenues over two years. The Nigerian oil minister and current OPEC president, Diezani Alison-Madueke, said she may convene an emergency meeting of the group, as regards this issue.

There’s no plan for such a gathering, according to a delegate who asked not to be named. OPEC’s financially vulnerable members have little sway over policy because they’re unwilling to cut production, leaving decision-making power with Saudi Arabia, according to Mike Wittner, head of oil markets research at Societe Generale in New York.

Even having its own way, Saudi Arabia isn’t guaranteed success, according to Barclays Plc. Global markets remain oversupplied, prices haven’t fallen enough to press OPEC’s rivals into cutting sufficiently and increasingly efficient shale producers could restore output, said Miswin Mahesh, an analyst at Barclays in London.

‘Hard Road’

“It’s still a very hard road,” said Mahesh. “We haven’t really seen an outright chunk of U.S. shale or any other high-cost production falling.”

The U.S. pumped 9.29 million barrels a day in the week ended Feb. 20, the most in three decades, according to the EIA.

On the other hand, the International Energy Agency, a Paris-based adviser on energy policy to 29 developed nations, boosted its estimate of the world’s dependence on OPEC in a Feb. 10 report, citing lower forecasts for other nations. OPEC will need to provide 600,000 barrels a day more in 2019 than the IEA predicted in its previous long-term outlook.

“If I’m sitting in Saudi Arabia, I’d say it looks like the plan is on its way to working,” Wittner said. “It does need to be reflected in real supply. But all the signs are pointing in the right direction.”

U.K. North Sea Oil’s 1,500 Job Cuts Is Just Tip of Iceberg

source: Bloomberg

The world’s biggest oil and gas producers, already cutting hundreds of jobs a week from the U.K.’s North Sea, are just warming up.

About 1,500 jobs have been lost in offshore oil and gas this year, according to Unite, Britain’s largest labor union. Ian Wood, author of a state-ordered report into the needs of the business, warned in an interview on Tuesday that about 15,000 positions relying on the industry could vanish in a few months.

BP Plc, Royal Dutch Shell Plc and Total SA are among those reducing staff, curbing investment or closing operations as oil prices that have fallen by half since June add to troubles from rising costs and aging resources.

“The 1,500 redundancies; that’s just the start,” John Taylor, Unite’s regional organizer, said by phone from Aberdeen, the Scottish city at the heart of the U.K. industry. “Half of that is drilling. There’ll be more construction workers later as projects come to an end in the next two months.”

The early layoffs portend hard times for a whole ecosystem of explorers, drillers, producers and service companies, along with businesses that rely on the local demand they create. About a quarter or a third of U.K. fields are uneconomic at current oil prices, BP Chief Executive Officer Bob Dudley said this month. His company announced 300 job cuts already this year.

Investment Drop

“The main challenge for the North Sea is that fields that could produce for 10 to 15 more years will be shut down earlier if the prices we are currently seeing persist,” Philipp Chladek, an analyst at Bloomberg Intelligence, said by phone.

Petrofac Ltd., a U.K. oil-services provider, cut contract rates by 20 percent and froze pay to stay competitive, CEO Ayman Asfari, said Wednesday in a Bloomberg TV interview. “The cost structure in the North Sea isn’t sustainable,” he said, calling on the government to introduce tax relief on new investments.

Investment will drop by more than half this year and 70 percent by 2018 on weak oil prices and high U.K. taxation, a lobby representing about 500 companies including the biggest energy companies said Tuesday in an annual survey of members.

The current rate of exploration drilling is the lowest since 1965, Oil & Gas UK said in its Activity Survey 2015. Cash flows for North Sea operators were a negative 5.3 billion pounds ($8 billion) last year, the worst since the 1970s, as costs rose and revenues fell to a 16-year low, according to the report.

15,000 Jobs

“I think 15,000 jobs will go in the next few months, before the end of summer,” Wood, who has been involved in oil and gas for at least four decades, said in an interview Tuesday.

“There will be significant negative impact on the economy of Aberdeen,” he said by phone from the Scottish city. “It’s going to have a tough time as it depends on one industry, which is oil, and as the industry winds down in the medium term, in the next 20, 30, 40 years, it’s getting some taste of that.”

Companies looking to cut back include Total, which said Feb. 12 it will reduce investment in mature North Sea fields. Shell, starting to exit the Brent oil and gas field after it exhausted reserves, will begin a consultation this month on plans to dismantle one of its four platforms in the area.

Talisman Energy Inc., Marathon Oil Corp. and Apache Corp. are also cutting back, according to Willie Wallace, Unite’s regional officer for offshore contractors.

Sending Signal

Castlen Kennedy, a spokeswoman at Apache, said most areas affected by the 5 percent reduction in its global workforce announced in January are in the U.S. Lee Warren, a spokeswoman at Marathon, also said the majority of its cuts were in America. Press officials for Talisman-Sinopec in Aberdeen didn’t immediately return an e-mail and phone call seeking comment.

If there’s one thing that unites managers and unions, it’s that the Conservative-led coalition government needs to help.

Actual job losses, which are “extraordinarily difficult to estimate,” depend partly on the signal that the administration sends to companies it needs to invest in the region, Wood said.

Chancellor of the Exchequer George Osborne will make the case in his annual budget on March 18. He is certain to bring in basin-wide field allowances to spur investment, lowering the tax take on the industry to just below 50 percent from 60 percent, according to Wood, who says he isn’t privy to Treasury plans.

“That’s still too high though,” he said. “What is needed is a reduction in the headline or supplementary tax.

Too High

‘‘The net effect should be below 40 percent to change the mind and mood of investment in the North Sea,’’ said Wood, whose review of the industry a year ago, including policies to promote development, was accepted in full by the government.

The Treasury declined to comment specifically on its plans, refering to an earlier statement that Osborne had vowed to take further action. The Chancellor met with the industry lobby Wednesday to discuss regulation and tax.

While the proposed investment allowances won’t satisfy the immediate demands of the industry, unions or local politicians, it may at least mark a first step in helping prevent a stampede for the exit by investors that would be hard to reverse.

‘‘If you have the right tax environment, then I believe in the medium to long term there are excellent prospects still,’’ Fergus Ewing, Scottish government energy minister, said Feb. 5.

Angola Hopes To Turn Around Falling Oil, Gas Output

Written by Joe Brock for (Reuters)

Angola plans to increase its oil production by 20 percent by next year after suffering a "very difficult" 2014 as costs soared, prices slumped and technical problems hit output, the state oil company Sonangol said. 
Oil output from Africa's second largest exporter and a supplier to China averaged 1.67 million barrels per day (bpd) last year, down 2.6 percent on 2013, Sonangol said in its annual results presentation on Wednesday. 
Gas output fell 29 percent after its liquefied natural gas (LNG) plant was hit by mechanical problems, helping reduce Sonangol's net income to $710 million last year, down 77 percent from 2013. 

Sonangol plans to restart LNG exports by the end of this year and boost oil production to 2 million bpd by the first quarter of 2016, an ambitious plan in a year when it will slash $4 billion of costs due to lower oil and gas prices. 
The OPEC-member has missed its oil production target of 2 million bpd for several years due to project delays and disappointing levels of investment as oil majors scaled back exploration projects due to the global economic downturn.

"2014 was a very difficult year," Sonangol CEO Francisco de Lemos Maria told reporters in Luanda. "We need to make corrections and to re-evaluate our entire implementation strategy," he added. Sonangol has secured the promise of a $2 billion loan from China to help with oil projects this year. Angola sends about half of its oil to China and Sonangol has a joint venture with Sinopec, China's second biggest energy company. Oil accounts for around half of Angola's GDP, 80 percent of tax revenues and 90 percent of export earnings. 

Beijing has issued several oil-backed loans to Angola dating back to 2003, a year after the African nation emerged from a 27-year civil war. Prior to this loan, China had lent Angola $14.5 billion since the war's end. Angola is seeking to borrow a total of $10 billion abroad this year, including issuing a debut $1.5 billion Eurobond and tapping the World Bank for $1 billion. Parliament on Wednesday passed a revised 5.4 trillion kwanza ($51 billion) 2015 budget, cutting spending by 1.8 trillion kwanza from its original plans due to a drop in oil prices . 

Angola's kwanza has weakened more than 7 percent in the last five months as oil prices weakened and foreign exchange supplies tightened. The kwanza was trading 0.3 percent weaker at 106 to the dollar by 0955 GMT, close to record lows.

Oil Rises Above $62 After Saudi Comment on Demand

Oil rose above $62 a barrel on Thursday as indications of a coming recovery in demand offset a further jump in U.S. crude stockpiles which underlined currently ample supplies.

Crude benchmarks in the U.S. and Europe posted their largest percentage gains in nearly two weeks on Wednesday, supported by remarks from Saudi Arabia's oil minister, Ali al-Naimi, and a slightly stronger-than-expected Chinese manufacturing survey.

Brent crude LCOc1 rose 71 cents to $62.34 by 5.23 a.m. ET, after jumping more than 5 percent on Wednesday. U.S. crude CLc1 fell 40 cents to $50.59, following a more than 3 percent gain in the previous session.

"The comments yesterday, the change of tone from Saudi Arabia, is still an element," said Olivier Jakob, analyst at Petromatrix, of Brent's gain. "The market is still reacting to that."

Brent collapsed from $115 in June on global oversupply, in a decline that deepened after the Organization of the Petroleum Exporting Countries chose to defend market share against rival supply sources, rather than cut its own output.

The price has rallied more than 35 percent from a near six-year low of $45.19 reached in January, supported by signs that lower prices are starting to reduce investment in U.S. and other non-OPEC supply.

A growing number of OPEC officials are making cautiously hopeful comments on the market outlook. This week, the Saudi minister said demand is growing while a Gulf OPEC delegate said demand would rise more strongly in the second half of 2015.

OPEC officials including Naimi had been making more bearish comments. Naimi was quoted in December as saying OPEC would not cut output even if oil fell to $20.

"No more talk of $20 from al-Naimi," Jakob of Petromatrix said in a report. "Analysts calling for $20 a barrel oil will be more shy now."

Underlining currently ample supplies, the U.S. government's latest supply report said domestic crude inventories rose last week to 434.1 million barrels, hitting a seasonal record high for the seventh week.

Brimming U.S. crude supplies are increasing the discount at which U.S. crude is trading to Brent. The spread reached $11.81 on Thursday, the widest since January 2014.

source: Reuters

Understanding the oil price dynamics: For Dummies

Usually I eavesdrop on intense arguments between office colleagues, boss to employees, people at motor parks, students, lovers, oil investors, radicals even children on the cause of the dynamics in oil prices and trust me I have heard funny reasons for answers. Obviously someone doesn't just wake up and say "Oii today looks like a good day for low prices" neither is it some discount activity like the boxing day sales. 

I promise not to get too technical and bore you with the economical brouhaha involved and to do that I have explained the phenomenon in lay man terms. (P.S: lay man terms is a relative word in this case).

First of all with each passing year crude oil continues to play an even greater role in the global economy. Annual capital expenditure on oil, gas and coal extraction, transportation and oil refining has surpassed $1 trillion as of date and with oil being the major player because of it's wide acceptability and efficiency a fluctuation in price will send some hard ripples through both producer and consumer nations. Crude oil prices are determined by 3 main factors: demand, supply and market sentiment. As demand increases (or supply decreases) the price should go up. As demand decreases (or supply increases) the price should go down. Sound simple?
Unlike most products, oil prices are not determined entirely by supply, demand and market sentiment toward the physical product. Rather, supply, demand and sentiment toward oil futures contracts, which are traded heavily by speculators, play a dominant role in price determination.

The Real Deal

Oil prices are determined by commodities traders who bid on oil futures contracts in the commodities market. These contracts are agreements to buy or sell oil at a specific date in the future for an agreed-upon price. Commodities traders fall into two categories; the Hedgers and Speculators. 
The hedgers are mostly representatives of companies who actually use oil. They buy oil for delivery at a future date at the fixed price. That way, they know the price of the oil, can plan for it financially, and therefore reduce (or hedge) the risk to their corporations. Traders in the second category are actual speculators. Their only motive is to make money from changes in the price of oil by closely guessing the price direction and has no intention of buying the product.

Factors Traders Use To Determine Oil Prices

1. Current supply in terms of output. This is usually controlled by OPEC quotas. If the traders feel there is a glut of oil (as are the happenings today) they bid the price down. Depending on the cause of this glut suppliers might want to play safe in agreeing to a future contract price.

2. Access to future supply, which depends on oil reserves. This includes what's available in the refineries and other strategic petroleum reserves (proven reserves). The ease of market access to these reserves determines at what rate supply can be increased in a case of high prices.

3. Current demand from consumer nations. Traders usually look out for seasons. For example demand goes up during the summer season because of increased driving. Increasing demand in terms of shortage in supply is the major point referred to here. 

Below are two illustrations on how the above factors work:

1. Iran Nuclear Crisis

This happened in January 2012, after inspectors found more proof that Iran was closer to building nuclear weapons capabilities. The United States and the European Union began financial sanctions.  Iran threatened to close the Straits of Hormuz (reduce supply, increase demand). About 20% of the world's petroleum, and about 35% of the petroleum traded by sea, passes through the strait making it a highly important strategic location for international trade.

As a result, oil prices bounced around $95-$100 a barrel from November through January. In mid-February, oil broke above $100 a barrel and stayed there.

2. Natural Disasters

Natural and man-made disasters can drive up oil prices if they are dramatic enough. Hurricane Katrina caused oil prices to rise $3 a barrel, and gas prices to reach $5 a gallon in 2005. Katrina affected 19% of the nation's oil production. It came on the heels of Hurricane Rita. Between the two, 113 offshore oil and gas platforms were destroyed, and 457 oil and gas pipelines were damaged (access to future supply).

OPEC Basket Price for Crude Oil from 2003-current

In summary, the price of oil is determined by its price in the oil futures trading market. The price in this market is determined by traders who use the current supply, access to future supply and demand to bid in the issuance of these trade contracts. This is the easiest way I can explain it and in future posts we will look at in details the real dynamics to the oil price. 

Feel free to add or subtract in the comment section below. Cheers

Top 10 Indigenous Oil Service Companies In Nigeria

With little information on net worth and all the financial "electric" juggernaut terms (which I tried so hard to get) I present to you a compilation of the top 10 indigenous oil service companies in Nigeria. This list was compiled on the base assumption of active participation in the industry in the last decade (and a little way down). Also a criteria used was diversification in services rendered (so as not to make the list one-sided)

P.S: If you feel I scrambled my list please let me know your views in the comment section of this post. Thanks.


10. Tecon Oil Services Ltd

                                                 

A wholly indigenous company, TECON was originally an Isle of Man company controlled by an American Investor group through Alliance Oil of Houston, Texas. TECON became a 100% Nigerian Company through acquisition in 1991, whilst still retaining its Isle of Man identity. Tecon headed by it's President/CEO Casimir C. Maduafokwa carry out their business of Oilfield Equipment Rentals and Provision of such specialized services as Oil Well Fishing, Casing and Tubing Running, Oil Well Snubbing/Hydraulic Workover Services, Machine shop/Tool fabrication and Redressing e.t.c.

Tecon seeks to be a lasting medium-sized company (with average annual billing, in excess of USD 50 million by 2007 and Technical staff / Consultants strength of under 300), a professionally managed organization providing high local value-added, quality and efficient services to leading E&P and services companies in the Nigerian Oil & Gas Sector, and potentially, in the West/Central African Offshore Markets – Equatorial Guinea, Sao Tome & Principle, Angola, Cameroon etc

9. NestOil Plc

Nestoil Plc was incorporated in Nigeria in 1991 for the provision of Engineering, Procurement and Construction (EPC) services to the energy and oil & gas industry. Since then, Nestoil has grown to become one of the leading indigenous EPC provider for major IOCs (International Oil Companies) in Sub-Saharan Africa like National Petroleum Company (NNPC) Shell, Exxon Mobil, Chevron, Total, etc.

Headed by it's Chairman/GMD Dr Ernest Nnaemeka Azudialu-Obiajesi who is also the chairman of NECONDE, a Nestoil-led consortium which just acquired 45% stake in OML-42 from Shell, Total and ENI, containing developed oil fields and gas reserves.

Some of their ongoing projects include the Nembe Creek-Cawthorne Channel 24"/30" Trunkline Replacement project for SPDC and the 18" Gas Supply Trunkline for the Nigeria Gas Company.


8. International Energy Services Limited (IESL)                               

IESL was established in 1990 as an indigenous energy services company. It provides integrated client-focused and cost-effective services in the oil and gas industry with specialized expertise for both onshore and offshore oil and gas development, power and renewable energy systems, infrastructure facilities and industrial plants.

Headed by the CEO Dr Diran Fawibe, IESL have/are engaged in various projects out of which include: Detailed engineering covering piping, process, mechanical, electrical, structural, safety and telecoms on the EGINA field development project (TOTAL). Amongst the list is also detailed engineering design for pumps installation on closed drain sump systems on the AGBAMI FPSO for Chevron. They also are carrying out the detailed engineeering work associated with the modification of existing topside facilities of the following TOTAL Upstream Nigeria Limited platforms: OFD1, OFD2, OFP1, Amenam and Odudu.

7. Negris Energy Services Company (NESCO)

Established since 1980, Negris prides itself as the foremost indigenous energy, oil, and gas service company in Nigeria. Negris plays a leading role in both the Engineering, Procurement and Construction (EPC), and Total Asset Management of Turnkey Projects relating to oil and gas services.


6. Fenog Nigeria Limited

Fenog is a privately owned Nigerian company specialized in Project Management, Engineering, Procurement, Installation and Construction projects particularly for the Oil & Gas industry. Since incorporation in 1992, Fenog has grown to become a dominant provider of EPCI services to the Nigerian oil & gas sector and corporate organisation. We have been known to use innovative solutions to deliver cost effective solutions to our clients. We are currently pioneering the use of innovative Continuous Horizontal Directional Drilling (CHDD) for installation of pipeline.

Assets include the Akpevweoghene which is Africa's largest offshore pipe-laying barge, personnel of over 98% local staff. Fenog Nigeria has the biggest and most powerful Horizontal Directional Drilling fleet in Africa. Currently Fenog owns several HDD rigs from the HDD pd 150 to the powerful HDD pd 500/90 rd. Headed by CEO Mr Matthew Tonlagha.5. NETCO

National Engineering and Technical Company Limited (NETCO) is Nigeria’s 1st National Engineering Company and is a wholly owned subsidiary of the Nigerian National Petroleum Company (NNPC). NETCO was established in 1989 as a Joint Venture company (JV) between NNPC and American Bechtel Incorporation, a world renowned engineering company.
NETCO started commercial operations in 1990 to acquire engineering technology through direct involvement in all aspects of engineering in the Oil and Gas industry. NETCO’s strategic vision is to provide Basic / Detailed Engineering, Procurement, Construction Supervision, Project Management, Quality Assurance & Quality Control, Environmental Consulting and Training.

Headed by Managing Director Engr. Isyaku Dandume Abdullahi. Though the company hasn't been on the forefront of the oil services business for a while now, it sure does make up for that in it's track record.

4. Dover Engineering

Dover Engineering Limited is a 100% Nigerian owned company that commenced operations in 2001 to provide system planning, Conceptual, FEED and detailed engineering design, procurement support,project management,professional manpower and construction services to the Nigeria Oil and Gas industry.

Established in 2001, Dover Engineering is one of the foremost engineering design companies in Nigeria with vast experience in providing first class engineering services for onshore,offshore,swamp and deepwater projects. With a multi discipline team of over 150 engineering employees operating out of two fully functional engineering facilities located in Lagos and Port Harcourt, Dover Engineering is one of the fastest technically pivoted growing companies in the country.

Headed by the CEO Engr. Eloka Ejeh, the company which runs a JV as WOODGROUP DOVER with the internationally acclaimed oil service company WOODGROUP has seen itself make various strides in pioneering subsea front end engineering design studies for major offshore projects including the EGINA-TOTAL.

3. Kaztec Engineering

Kaztec Engineering Limited is a 100% indigenous Engineering, Procurement, Installation, Construction, and Management (EPIC-M) Company. Incorporated in 2005, Kaztec has become the pace setter EPIC-M company in the Onshore / Offshore Pipelines and Facilities. A subsidiary of Chrome Group, Kaztec Engineering Ltd. is a key member of that group and has become a leader in the fabrication of drilling and production platforms in the oil and gas industry.

Headed by it's Chairman Sir Emeka Offor, vessels owned include Ekulo Cheyenne (Pipelay/Derrick Barge), Ekulo Spirit (Towing/Anchor Handling Tug), Ekulo Tornado (Dive Support Vessel) and Ekulo Explorer (Anchor Handling Tug). Some projects include the ANTAN ofshore drilling project for Addax Petroleum and also a state of the art fabrication yard at the Snake Island in Lagos.


2. DeltaAfrik

The Company was incorporated in August 2003 under the Laws of the Federal Republic of Nigeria and is jointly owned by DeltaTek Engineering Limited (100% Nigerian Engineering Company) and WorleyParsons. This is to fill the niche for indigenous professionals to be actively involved in the Oil & Gas, Power, Infrastructures and other industries in order to increase local capacity and to help meet the challenges of creating and sustaining a visible presence and solutions in today’s competitive market.

Arguably the most technically sound engineering player in the the oil and gas industry DeltaAfrik can boast of being a leader in major oil and gas offshore projects. These include USAN FPSO, Agbami Technical Service and Subsea Project, etc.


1. Nigerdock Nigeria PLC

     

Nigerdock Nigeria Plc - FZE is West Africa's leading industrial corporation focused on oil&gas construction and major marine services including offshore and pressure vessel fabrication, ship building and repair, industrial training and specialized oil&gas and maritime support.

Nigerdock’s Offshore Fabrication Division is specialized in the fabrication of topside modules, subsea manifolds, jackets, wellheads, satellites, process platforms, process piping, buoys, piles yokes, and double joints. Nigerdock also performs offshore installations of pipe spools, supports, platforms and heat shielding including pipe coating and the installation of MOV's, flowmeters, P&T transmitters, F&G detection systems, including cabling and ducting.

Nigeria Will Call Emergency OPEC Meeting If Oil Rout Continues

Nigeria will call an extraordinary meeting of OPEC if crude oil prices slip any further, the country's oil minister said in an interview with the Financial Times, in a sign of growing alarm over the impact of oil's collapse on oil-producing economies. "We're already talking with member countries," said Diezani Alison-Madueke in the interview published on Monday. 

As OPEC president, she is responsible for liaising with member countries and the producer group's secretary-general in the event of an emergency meeting. If the price "slips any further it is highly likely that I will have to call an extraordinary meeting of OPEC in the next six weeks or so", she said. Almost all OPEC countries, except perhaps the Arab bloc, are "very uncomfortable," she said. 

The comments are the first public sign of the deepening unease about the oil crisis since Venezuela and Iran last month pushed for the cartel to cut output in a bid to reverse the more than 50-percent drop in prices since June last year. In November, the 12-member group chose to hold production at 30 million barrels a day. The next official meeting is scheduled for June. 

Global benchmark Brent oil prices briefly rose by more than $1 a barrel on the comments, reversing earlier losses, but quickly sank again as dealers doubted whether there was any scope for rapid action given core Gulf OPEC members led by Saudi Arabia have given no sign they are ready to curb production. 

Nigeria "obviously needs more money for its oil, but if the Saudis, who control one third of OPEC production, do not go along, what can it do?" said James L. Williams, energy economist at WTRG Economics in London, Arkansas.

(SOURCE - REUTERS)