Oil minister Timipre Sylva said Nigeria knows it cannot recover $62 billion from oil majors despite ongoing cases against the companies for money the government believes it is owed.
“Nobody can bring out that kind of money,” Sylva told reporters after a weekly cabinet meeting in Abuja. “I mean, we can’t get $62 billion. We can maybe get something from them but not $62 billion. It’s an opportunity we have lost.”
Nigeria has been fighting for the cash under a 1990s law that states it can revisit production-sharing contracts on oil output if crude prices exceed $20 a barrel.
Sylva said talks about recouping some money from oil majors, such as Shell, Chevron, ENI and ExxonMobil, were ongoing.
The companies received individual requests for cash in February, with one telling Reuters its bill was nearly $10 billion. Shell and Chevron are fighting the cases in court, according to scheduled cases seen by Reuters.
Sylva said the government must quickly pass amendments to the underlying law to ensure it did not miss out on more revenue.
Angolan crude exports will rise Significantly in December as the Girassol field has resumed production following maintenance last month, traders said.
Preliminary programmes showed Angola is set to export 44 cargoes in December, up from a final programme of 38 in November. The export plan excluded the Saxi field, which traders said was likely down due to maintenance.
A supertanker owned by COSCO Shipping Tankers received a temporary waiver from U.S. sanctions, allowing the ship to discharge crude oil in Singapore and Brunei.
The sanctions caused freight rates to spike and confused market participants, especially those dealing in oil already underway inside sanctioned ships.
The exception made for the VLCC Coswisdom Lake has led traders to believe other one-off waivers may be forthcoming.
Freight rates for shipping West African oil to Europe have eased, from world scale 275 to 230 according to a European importer.
Prices for some Nigerian grades have dipped to dated Brent negative, highly unusual for those types of crude best suited for refining into profitable products like gasoline.
Total sold a cargo of light sweet Nigerian Amenam to Cepsa while Sahara was offering another cargo of the grade – both likely negative compared to dated Brent.
Cepsa’s snapping up of several lighter Nigerian grades in the last week was due partly to having commissioned time charter vessels in advance, scoring cheaper freight on free-on-board rates than paying on a spot basis.
India’s HPCL has issued a buy tender, for three VLCCs of crude loading in the first quarter of next year, set to close on Friday.