When you own the oil rigs, the expertise and everything connected with bringing a God-given commodity out of the ground, and there are no consequences coming to you from any damages to the land, water and atmosphere you would expect almost half of the proceeds of the venture too. You are not the fool.

The fools in this deal know ourself.

http://dailytrust.com.ng/index.php?option=com_content&view=article&id=152807:foreign-firms-take-43-percent-of-nigerias-oil-revenue&catid=1:news&Itemid=2

Written by Abdul-Rahman Abubakar Friday, 20 January 2012 05:00

International Oil Companies (IOCs) receive a share of 43 percent of Nigeria’s crude oil production per day, Finance Minister Ngozi Okonjo-Iweala told the House of Representatives Committee probing the fuel subsidy regime yesterday.
Speaking when she appeared before the Rep. Farouk Lawan-led panel, the minister said it was wrong to equate government revenue by total crude production as it gets only about 57 percent while the oil majors take the balance.

According to her, “it is wrong to just do arithmetic by the crude oil production per day by the price and then say this is the revenue that government receives. We have joint venture agreements. Our percentage of the production has come down from 60 percent now to 57 percent and people should know this.”

She said the oil companies in joint venture agreement with the country deduct their share from source, saying “they even deduct their share before they get to us. We have to meet the joint venture agreement.”

With an oil production of 2.5 million barrels per day at $113 per barrel, the oil majors will receive over N18 billion from sale of crude per day while Nigeria receives about N25 billion per day.

Many Nigerians don't know this. That is why they want to keep Nigeria one because as long as you are busy fighting yourselves. They can rob you blind. The white man is made rich of of this Nigerian oil. Many white people in in America, UK, Netherlands, etc are milionaires and billionaires because of Nigeria. The white man licks the butt of Saudi Arabian princes because they control their own oil and they don't bow down to no white man.

I don't understand the outrage. They do all the work & take less than 50%. How is this bad?

WHAT
Who signed that agreement in the first place

Whoever didn't know about Royalty payments before now is an unenlightened cretin! That's the problem with Nigerians, we no dey gree find facts, !

thats is serious

The illiterate Gowon sold Nigeria after the war,who knows the deal he signed with his former allied after the war

@jedisco. Is a signed agreement btwn nigeria and the west during the war under gowon.

is dis d reason hugo chaves of venezuela nationalised d oil companies in his country and moved his country's gold reserve from d us? no wonder they are at logger head with this man, calling him all sorts of stupid name and demonising his govt. now what percentage is in d agreement btw d us govt & bp? nigeria d wonderland!

This is Madness

1virus:

@jedisco. Is a signed agreement btwn nigeria and the west during the war under gowon.

That does not make sense at all. Did you bother reading what the article says at all? These companies, like someone says, do all the work. They drill, extract, and all, and only take 43%. What would you like for them to take? 1% 

If it was the case that Nigerian owned companies handled all of the same amount of work, would you also express this much outrage at the amount the company takes in for all the same work?

This is why US and Britain always refer to Nigeria as very important country for them. Because the North does not believe in one Nigeria that is why they are looting the proceeds from Niger Delter in collaboration with the west and now that they are no longer in power they want to destroy Nigeria.

Ngozi, Sanusi and Diezani who fill they know it all are there watching the Oil companies loot our resourcing using such a lopsided agreement without doing anything or advising the President properly, but they are quick to remove subsidy, God will punish all of them including their boss. Bastards.

what do u mean by they do all the work?. Its obvious you are not an expart in this field.

Seun:

I don't understand the outrage. They do all the work & take less than 50%. How is this bad?

I cannot but express my profound
gratitude and solidarity to the NLC,TUC
and other affiliate organizations.
We in the oil and gas sectors are solidly
behind you.

Let me quickly introduce ourslves, we are a
group of well meaning Nigerians in the oil
and gas upstream sector who wish our
voice to be heard in this battle to save
Nigeria.

While we negotiate with the government,
these perspectives must be adressed.

lets talk about this present day subsidy
regime, the Cbn gov has already confessed
he has evidence of round tripping , he said
he paid subsidy on 15 fake vessels
approved by customs.
what did madueke do? nothing

the reasons investors did not build
refineries over the years was lack of cheap
crude but the biggest reason is corruption
how?

licences were given to companies without
the financial muscle to build refineries also
part b of the license clearly states that
these armed robbers have oil lifting license
embedded in their refining license,
tell me who will choose refining over lifting
where he makes instant profit and inflated
subsidy
what did madueke do? nothing as usual

do you know that NNPC does not have
storage facilities for all those millions of
products they are quoting and importing.
how exactly does Nnpc wish to store
30million litres of pms?
do you know that these fg goons went
ahead to licence importers without storage
facilities leading to the govt paying extra
for storage on a product they are paying
over 70 naira as subsidy can u beat this
stup1dity and incompetence?

what did iweala and madueke do? nothing,

do you know that these leppers in Nnpc
have no grading structure for imported
pms low grade,mid grade and high grade
all are pms same subsidy, same price even
ethanol blends have subsidy paid on them,
can you beat that?
even abroad where the products come
from have different prices. some are far
cheaper than others which ordinarily
should attract low subsidy


what did madueke do? nothing.

do you know that these bingos at Nnpc
dont maintain their pipeline networks
which ordinarily should link one depot to
the other,
they have to pay extra for tankers
transporting these products all are
subsidies.
eventhough their foreign jv partners are
maintaining over 1000 pipeline networks in
Nigeria.
what did madueke do?
nothing.


do you know that under madueke's watch
demurrage is paid as subsidy to these
importers .
how cant they be reponsible for their
import schedule?
is it not commonsensical for madueke to
prioritize the discharge of those vessels
quickly in tank farms as not to attract
demurrage for a product you are
subsidizing?


and they want us to tighten for a better
future? which future ? can iweala,Sls and
madueke plan for a sustainable future if
given the task?
dead failures.


for every extra kobo you pay on pms you
paid for madueke's incompetence.
now they can see high expenditure but
cant see how their incompetence is
inflating the subsidy regime.
Do u seriously think iweala will see it
comming if it was true that economy will
crash?


Let us analyze the genere and politics of
these issues
There are more misnomers than facts
surrounding this subsidy brouhaha.
First,
the Govt said the economy will collapse,
ridiculous indeed

secondly,

the Govt said
oil importers are a 'cabal', nearly fell off
my seat.
Comrades, there are no cabals, in 2009 the
scarcity of petroleum products became
intense and the Govt admitted that Nnpc
through its subsidiary PPMC has failed
Nigerians by their inability to meet up with
the supply of pet. Products and that
phenomenon gave rise to licensing of
some people to 'assist' the Nnpc in doing
their job for which they are paid for.
Please don't forget that hitherto, Nnpc has
been doing the importation and refining
themselves before corruption eroded their
common sense.
These importers went abroad and came
back with a price Nnpc is already aware of
comprising of logistics, storage and
administrative costs, these were quantified
before they arrived at a price.
The FG now fixed a price tag of 65naira on
Pms and agreed to be reimbursing the
importers the balance not oblivious of the
fact that the landing cost is higher than
the stipulated price
To my greatest chagrin, the Jonathan’s
administration woke up and termed them
'cabals' who are fleecing the nation.


Assuming Ruben Abati goes abroad to buy
a TM underwear for 1k and decides to sell
it 1.5k adding purchase price plus logistics
plus profit and the Govt tells him to sell at
900 naira, wont he ask for the 600naira
balance? When the incompetent NNPC
agrees to reimburse him, then he has
become a cabal stealing from the GOvt?
We are not docile, If Nnpc lived up to their
responsibility, we won’t have need for the
importers in the first place.There is no
doubt that the subsidy regime is met with
corrupt practices, is it not the
responsibility of the govt to clamp down on
those malfeasance?
the Governor of central bank confessed
during the town hall meeting that he paid
subsidy to 15 fake vessels who connived
with customs to falsify their papers.
is this not fierce corruption?
and we have a shameless commander in
chief? by the way, how many naval officers
patrol our waters on tax payers account?
efcc,icpc etc
The only solution that came to the minds
of this disgruntled PDP administration is to
remove subsidy into-to not minding its
inflationary consequences.
This is the si1liest approach any human
being with brain if they have one can
summon.

Thirdly,

Jonathan insulted the intelligence of
Nigerians telling us that we don't benefit
from this subsidy except for the importers
and he had the unbridled temerity to be
advertising it on NTA saying the rich are
getting richer.
This people are demons.
When Ruben abiati's mother goes to the
market to buy vegetable at a price, does he
not know that the seller included cost of
transportation to that price?
So when the transporter buys PMS @
65naira and fixes his price based on that,
he says his mother did not benefit from
the subsidy that guaranteed the price in
the first place?
In a generator driven economy like ours?
It is either Ruben Abiati and his employers
are drunks or they think that Nigerians are
m0rons.

I feel sorry for people that think that
competition will crash the deregulated
price erroneously juxtaposing it with GSM.
Do you know that the price of crude being
the raw material for refined pet. Products
are sold at the same price world overl?
If you agree to this, then, even if you
deregulate and license 5million importers
the product will still be expensive because
crude itself is expensive.
You will still need to subsidize it to
65naira, exactly why deregulation of diesel
in part did not work.The only reason you
have not bought diesel @ 200naira is
because there are so many illegal
refineries who bunker crude, settle JTF and
refine diesel at a lower price.
This people still pose a great threat to the
importers who buy at a higher price that is
why you get diesel @ 140naira elsewhere
but in the delta i buy as low as 70naira. At
this verge you will not over rule the fact
that these unscrupulous elements
contribute to the availability of diesel, if
you are in doubt, anywhere you see cheap
diesel, ask the dealer the source of his
consignment If he is honest he will tell you
the truth, when i was told, i took an hr
20mins boat ride to a remote village in the
delta between Belema and Kola
communities and i saw the local refinery
myself.
Conduct a chemical test on those cheap
diesels if you are not convinced and you
will realize a lot of additives are
missing.Sounds incredible but those are
the realities on ground.You now know why
many importers in the delta hardly have
diesel.
I still feel sorry for those who think the
Govt should build more refineries, that will
not solve the problem either because there
is no cheap crude to supply these
refineries.


Do you know that even the petroleum
products from our present refineries at a
disappointing capacity attract subsidy?
that is what Sanusi is not telling Nigerians.
This Sanusi's buisness model of increasing
local price to attract investors is
misleading.

He should ask himself why so
many buisnesses left the USA for Asia and
Arrica between 1998 till 2008.
The reason was because cost of doing
buisness in America was high so there was
need to tap into Africa's cheap land and
asia's cheap labour.

If you increase the pump price the spiral
inflation will discourage investors, you pay
high for land,labour, enegy etc.


A brief insight in Nigeria's oil and gas
model gives us a better outlook
The oil production of Nigeria stands at
2.37 million barrels of crude daily. Nigeria
get this crude in a JV (joint venture) with
IOC's (international oil companies) and the
Nigeria's cut stand btw 55% to 60% of the
lot, if we go by 60% then, that gives a
total of 1.4m barrels daily.If we average
the crude price from 2009 till date, the
price falls close to 100usd/bbl.In that case,
Nigeria makes 140,000,000usd daily from
this JV.
Nigeria has a policy called DSO (domestic
supply obligation) which mandates
250,000bbl/d of this crude to be refined
and consumed locally,In monetary terms,
the Nigerian govt is giving us
25,000,000usd worth of crude to refine.
Our three refineries at optimum capacity
utilizes about 450,000bbl/d which gives
45,000,000usd in monetary terms in other
words, the price of raw material in this
case, crude, accrued to our refineries
comes at 45m usd per day
, if you add refining cost and profit of 6usd
per bbl,The total cost becomes
270,000,000usd per day.There is no way
you can refine that crude at that price and
sell it 65naira/ l and make profit.
Meanwhile, once we mark out that 45m
usd worth of crude for our refineries
(assuming they are working at optimum
capacity), the govt has already lost 45m
usd from their 140m usd daily earnings
(which will affect budget implementation)
and after refining will still spend more
money to subsidize it to 65naira/ l
(you now understand why NNPC subsidizes
the products from our refineries)
With this analogy, you will agree with me
that if all our refineries are working
optimally, the govt will spend 3times our
present day subsidy to bring the pump
price down to 65naira/l .


So, for those of you clamoring for
refineries should be careful what you wish
for because there is no cheap crude for
you to refine.

I have argued abinitio that the sales of
other derivatives of crude will bring down
the cost of most sort PMS,DPK etc but
after doing some feasibility studies, i
realized i was dead wrong.


I further argued that to make cheaper
crude available for our refineries, the Govt
should reduce the price at which it is
supplied unfortunately, the senate
mandated the then GMD of Nnpc that the
DSO must be sold at international crude
price.
This i believe was proposed for the
following reasons:


1 the refineries are working below capacity
so what the heck does Nnpc use the crude
for?


2, there is a benchmark on crude price for
budget implementation.With these
reasons, any existing or yet to exist
refinery in Nigeria will get crude at a high
price and must need subsidy to sell at
65naira/ l, at this cross road, the then
GMD of Nnpc decided that all crude
should be exported and subsidy be paid on
imported products.


At this verge, i must reiterate here that
competition amongst importers will only
crash the profit margin but not cost
price.Even if every Nigerian becomes an
importer of pet. Prods, we can never
change the fact that crude in the int l
market is already expensive before thinking
of refined prod. So we must need subsidy
to make profit.

Before this issue of subsidizing petroleum
products can be addressed,You must have
the following at the back of your minds:

1, Nigeria pegs a benchmark on crude
prices to enable it implement budget. This
stands at 75usd/bbl. And this crude is sort
from the JV
.2, if crude price exceed the benchmark
above, Nigeria makes excess crude revenue
(ECR) 3, conversely, if we make excess
crude revenue, the price of subsidy on
refined products shoot up.With the above
analogy,
One can argue that the ECR be used to
subsidize imported petroleum products
since both are a function of each other
unfortunately in Nigeria, it comes with its
own challenges.
By law, the constitution clearly states that
all revenue accrued to the FG be shared
amongst the three tiers of Govt.This alone
makes it illegal for the FG to keep the ECR
to itself for whatever reason.
This is where the wahala started, during
GEJ's campaign, he astronomically
increased workers salary without
consulting the state Governors,most
Governors have refused to pay on the
grounds that they cannot afford it.
On that grounds Taraba, jigawa and some
other states have a genuine case.With the
above development, the states started
scrambling for funds and remembered the
ECR and insisted it must be shared to
enable them pay the new wage and
develop infrastructures.
you now understand why all state
governors are for subsidy removal
including the literally "one of us" comrade
Adams oshiomole, because they know it
will be shared just like the ECR


The way forward:


In the short run:


All unions must ensure the FG, must
consider these options,

1, identify and tackle the corruption and
incompetence prevalent in the subsidy
regime above. That will push down the cost
of the subsidy in the first place.Like i said
in April, no matter how sincere GEJ think
his administration is, he cannot make any
reasonable progress in the face of
corruption,


2, the power projects must come upstream
before removing subsidy, this will reduce
the demand on pet. Products to a very
great extent.


3, Nigeria must accommodate Gas export,
port duties and other forms of revenue in
their budget implementation policies.


4, Govt must never invest an extra kobo in
our moribund refineries, by doing
otherwise, the cost price of the refineries
will rise to an extent that it will no longer
be attractive to investors or will prolong
their repayment plan.Thereby making it
very capital intensive.


5, Instead of deceiving Nigerians with their
cabal bullshit and deluding them that they
don't benefit from this subsidy, the FG
should channel that propaganda with
intense lobbying to the senate,NLC and
civil society organizations to stop the state
governors from demanding for the ECR,
this can be achieved by the FG asking the
state to pay whatever increment they can
afford for the workers that way the ECR
will be used for subsidizing pet. Products.


In the long run:


Nigeria must seek local production
capacity.It is no longer news that Nnpc
and its subsidiaries have failed woefully in
meeting the needs of the Nigerian people.
Nnpc through its subsidiaries Npdc and
Ngc are saddled with the responsibility of
the above for oil and gas production
respectively, but as i write, the current
production of NPDC stands at a paltry
90,000bbl/ day which is a huge failure for
an agency set up 23yrs ago,

The IOC's has made us believe that it will
cost less than 12usd to extract 1bbl of our
oil.

The Management of NPDC must be
reshuffled and if possible experts brought
in on contract basis to improve NPDC's
production.These experts must be placed
on targets appraised by milestones. in
ogoni land for instance, Anglo dutch has a
lot of abandoned production facilities and
marginal wells and others scattered all over
the country, these can be bought by NPDC
with the money FG want to waste on
refineries to improve production,

If NPDC can extract oil at 12usd/bbl and
make a little profit, with this cheap oil
available, Nigeria will have no reason going
to the JV.

This cheap crude is what will attract investors to build refineries and create jobs against sanusi's pump price increase to attract investors and create another monster called INFLATION,
A 250,000bbl/d refinery will cost a little
above 5b usd, dangote alone can afford
two of those only if NPDC can guarantee
cheap oil. This is why no investor is coming
to build refineries.
A crude price of 18usd/bbl from NPDC will
guarantee pump price of less than 22naira
per litre of pms from these refineries.With
this plan,By the end of this Administration,
NPDC will have robust production capacity
and the refineries will guarantee steady
refined products.
These refineries shouldn't be operated by
the Govt for any reason.The FG will
generate revenue from both ends, export
of crude and export refined products and
the production of NPDC must be
increasing periodically.
this is necessary because Nigeria as a
member of OPEC has a limit to crude
export but we can earn more revenue from
petroleum products export.
Once the above takes effect, there won’t
be any need to be paying subsidy because
pump price will be around 23naira/ l and
inflation will reduce by 40‰.
Now, how competent is Allison Madueke
and iweala if they can’t figure this out?

To think of removing subsidy at this stage
where there is no electricity and high
corruption rate will be tantamount to
economic suicide.

I cant believe iweala and sanusi are using
trial and error approach to economic
solutions please try the next country or
preferably Haiti.

What iweala forgot is that in the face of
inflation, the cost of running Govt projects
will be high, All Govt contractors will
definitely come back for contract variations
or Abandon those projects.

As a sound economist, she should tell
Nigerians the value of 1.3 trillion naira
( she intends to save on subsidy removal)
in the face of 60% inflation and how many
projects Nigerians will benefit from the
subsidy removal.If you remove subsidy and
the money disappears, then it is a NO NO
for Nigerians.

Now, let us analyze possible solutions to
this economic quagmire.


I have a deal for iweala.


fight corruption and inefficiencies in the
subsidy regime and bring it down to
300billion for this year.

The management of Npdc must have a
target
of 150,000bbl/d by dec 2012.
on january 2013 subsidy will go by 50%
and by dec 2013 Npdc should guarantee
200,000bbl/d on

1st january 2014 subsidy must go 100%.
with or without the refineries on ground,
then if Nigerians are sacrificing, they will
know it has a
limit pending when refineries that will
utilize the cheap oil on ground arrives.

tell me what WE are sacrifising for today?
eternal slavery?

I and my generations cannot and will not
sacrifice for Govt's incompetence.

All unions should never accept partial
deregulation, it is more dangerous than
total deregulation because Nigeria hasn't a
price regulatory agency who ordinarily
should put the markets and commuters on
check.

Deregulation in the down stream sector is
not same as telecoms, we need structures
to support it which Nigeria have not got
unlike the later.

God bless you as you fight this battle for
mankind

Written by;

concerned oil and gas activists

this is nothing new. .  .it's the same with other oil producing states. . . .%tage though might defer a little. . of course it's Nigeria, expect some ppl receiving kick backs

To add to the Finance Minister's clarrification:

The 57% is futher shared among
FG, states, Local Govts, Derivation
to Oil producing states and
Excess Crude Account.

The FG's share is what forms the 4 trillion
naira budgetted for year 2012.

This clarrification is neccessary because one 'ignoramus'
was misinforming protesters at Gani Fawenmi Park Ojota with
Ajegunle Mathematics of how FG sells 2.5 million barrels
of crude oil per day amounting to 16trillion naira
every year but is proposing a budget of only 4trillion naira.

Seun:

I don't understand the outrage. They do all the work & take less than 50%. How is this bad?

The resource does not belong to them. Tell your boss you deserve the greater share of the company's profits than him since you do all the job

ceejayluv:

Whoever didn't know about Royalty payments before now is an unenlightened cretin! That's the problem with Nigerians, we no dey gree find facts, !

1. Its much better if you post without insults
2. Everybody knows about royalty payments if not none of them would be Here but its just the percentage thats worrisome
3. I think I prefer the method used in Iran where they do the whole work and sell the crude to the government at a fixed price so all the rise in oil price will be gain to the government only

The Venezuelans already drew our attention to this (if I recall 90% accrues to them). That's why Venezuela is hated by the US, and why Venezuela can sell PMS at 15 cents/ gallon in their country.

@Seun and Kobo
I think you people should also look at their agreement with other  countries. That of Iran really interests me

Until we have national oil producing companies at capacities that will give the IOCs good competition, we have no edge at the negotiation table. Your leaders are busy looting to think of such, I cry for Nigeria

@Topic

I can confidently tell you that the figures is even higher than what is presented above. They take everything for free. No Nigerian can give the exact figure of the crude oil being exported daily.-FACT

so, how do we arrive at this percentage, if we dont even know what is going out? Do we have central meter or crude accounting system that is free from corruption? Hell NO!

I was with Exxon Mobil at Eket around 2007, believe you me, No one knows what is really going out of the country. The DPR and NNPC guys in charge of BOP(BERTH OPERATING PLARTFORM), who are supposedly in charge of taking records of what is going from the small offshore plartform, which crude oil lifting tankers operates from, are either in Lagos or Abuja chilling with chicks at the expense of the country.

The crude accounting department at QIT(Qua Iboe Terminal) of exxon mobil in Akwa Ibom is heavily compromised. The naval officials that suppose to record the number of the barges coming in and out, are all in payroll of exxon mobil.

Its weird that many Naijarians even those that classify themselves educated are not aware that we have Joint Venture agreements with the oil majors. The naija media too sometimes publishes news that shows they are ignorant. Naijarians read news stories and dont bother to think, they just swallow any news hook, line and sinker. We all know there is corruption in Naija, but you cant steal what you dont have. A newpaper once claimed that a former governor stole x billion, the amount was higher than the state's budget. How can i believe this story?

How can we even get outa this in the next 50 yrs when our profs are only theoretically sound and preserve knowledge to make themselves relevant, militants are given scholarship while our brilliant graduates roam the streets.

What is the next step now?
We really need to set a round table of re-negotiation immediately. . . Nothing less.

PETRONAS, short for Petroliam Nasional Berhad,[1] is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. Petronas is ranked among Fortune Global 500's largest corporations in the world. Fortune ranks Petronas as the 95th largest company in the world in 2008 and 80th largest in 2009. It also ranks Petronas as the 13th most profitable company in the world and the most profitable in Asia.[2][3][4]
Since its incorporation, Petronas has grown to be an integrated international oil and gas company with business interests in 35 countries. As of the end of March 2005, the Petronas Group comprised 103 wholly owned subsidiaries, 19 partly owned outfits and 57 associated companies. Together, these companies make the Petronas Group, which is involved in various oil and gas based activities. The Financial Times has identified Petronas as one of the "new seven sisters":[5] the most influential and mainly state-owned national oil and gas companies from countries outside the OECD.
The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
The Petronas Twin Towers were officially opened on Malaysia's 42nd National Day, August 31, 1998 - in the Corporation's 24th Anniversary year.

The government was determined to develop Malaysia's natural gas as well as its oil Shipping Company (MISC), of which it owned 61%. These were to take LNG exports out of Malaysia, save the cost of hiring foreign tankers, and expand the country's fleet under its own control—in contrast to cargo shipping, which was controlled by international conferences. Shell BV, the Royal Dutch/Shell subsidiary that was building the LNG plant off Sarawak with Japanese and Asian Development Bank aid, accepted production sharing with Petronas but baulked at sharing equity, transport management, or refining. Negotiations went on, pushing commencement further and further back, until 1977, when Petronas and the government, faced with the costs of maintaining the tankers between delivery and first use, surrendered management rights—leading to a repeal of part of the Petroleum Development Act—and settled for[b] Petronas's taking 60% of equity in the new company Malaysia LNG. The Sarawak state government took 5%, and the other 35% was divided equally between Shell BV and the Mitsubishi Corporation. Production of LNG in Sarawak at last began in 1983.[/b]

Another new venture in 1990 was in ship-owning, since Petronas's existing arrangements with MISC and with Nigeria's state oil company would be inadequate to transport the additional exports of LNG due to start in 1994, under the contract with Saibu Gas. Petronas did not lose sight of the government's commitment to Malaysian self-reliance, and the company's second refinery at Malacca, completed in 1994, with a capacity of 100,000 barrels per day (16,000 m3/d), promoted the same policy. The fact that it was built in a joint venture with Samsung of Korea, the Chinese Petroleum Corporation of Taiwan, and Caltex of the United States did not negate the policy, for the subsidiary company Petronas Penapisan (Melaka) had a decisive 45% of equity while sharing the enormous costs of and gaining advanced technology for the project. More to the point, a side effect of the refinery's completion was that Petronas was able to refine all of the crude oil it produced, instead of being partially dependent on refining facilities in Singapore.

During the mid- to late 1990s, international exploration, development, and production remained key components in Petronas's strategy along with diversification. A key discovery was made in the Ruby field in Vietnam in 1994. That year, the firm also saw its first overseas production from the Dai Hung field in Vietnam and established its first retail station outside of Malaysia in Cambodia. In 1995, a subsidiary was created to import, store, and distribute liquefied petroleum gas (LPG). In addition, the company's polyethylene plant in Kerteh began operations. Petronas marked a significant milestone during this time period—two of its subsidiaries, Petronas Dagangan Bhd and Petronas Gas Bhd, went public on the Kuala Lumpur Stock Exchange.
In 1996, Petronas entered the aromatics market by way of a joint venture that created Aromatics Malaysia Sdn Bhd. It also formed a contract with China National Offshore Oil Corporation and Chevron Overseas Petroleum Ltd. to begin exploration of block 02/31 of the Liaodong Bay area in China. While the Asian economy as a whole suffered from an economic crisis during 1997 and 1998, Malaysia was quick to bounce back due to successful government reforms. From its new headquarters in the Petronas Twin Towers, the state-owned concern continued its development in the oil and gas industry.

Petronas entered the new century determined to expand its international efforts. The company forged deals for two new exploration plots in Pakistan and began construction on the Chad-Cameroon Integrated Oil Development and Pipeline Project. By 2002, Petronas had signed seven new PSCs and secured stakes in eight exploration blocks in eight countries, including Gabon, Cameroon, Niger, Egypt, Yemen, Indonesia, and Vietnam. The firm also made considerable progress in its petrochemicals strategy, opening new gas-based petrochemical facilities in Kerteh and Gebeng[/b]


[b]This is how you proactively run an oil company in a "sincere" country.

Though Malaysia with a population of 28m produces just 693,000barrels/day (Nigeria 2.4m barrels/day), the country consumes 536,000barrels/day(Nigeria consumes 280,000barrels/day) and Petronas (their equivalent of our NNPC) rakes in US$ 20 billion/annum (N3.2trillion) on the average as net profit.

Another stone head on the loose. I would have put a bullet hole through your head, in real life.

JVO, PSC, OML. . .blah blah blah. Keep your your tiny brain occupy with lot of trash.

sovpounds:

[b]Its weird that many Naijarians even those that classify themselves educated are not aware that we have Joint Venture agreements with the oil majors[sb]. The naija media too sometimes publishes news that shows they are ignorant. Naijarians read news stories and dont bother to think, they just swallow any news hook, line and sinker. We all know there is corruption in Naija, but you cant steal what you dont have. A newpaper once claimed that a former governor stole x billion, the amount was higher than the state's budget. How can i believe this story?

That does not make sense at
all. Did you bother reading
what the article says at all?
You are the 1 ho is not making sense at all, and u are not geting the msg. What d minister is saying is more than the %tage. Your country is the only opec member ho have little or no access to her raw materia(crude) directly all in the name of a Signed Agreement. Make ur research and quot me wrong.

@ rhino

that is not the point, I said it sometime ago that the downstream sector is a saint compared to upstream and your ascertion above was one of the points I raised.
what we talking about here is that officially Nigeria signed a death warrant agreement with these ioc's before they even agreed to come and invest here.
nobody is disputing malfeaseance but we are arguing on the official percentage,
in my own opinion I think the ioc's are generous to a country like Nigeria.
dont mind beaf and his niger delta cohorts who think that because they own the oil therefore everybody should sink.
the question I have for he likes of beaf is: can you bring it out?
out of the 517 major operations in oil and gas, nigeria has no single tech to support any and we make noise.
when gen buhari as NNPC boss was saying that our oil is useless if we dont own it all, guess most of us didnt understand what he was saying.
do you know that for the past 10yrs or so, the fedral govt has never contriibuted their 57% of exploratory funding
they choose to pay the iocs with oil and that is where rhinos fraud is perpetrated with impunity.
in other words
the iocs with their tech identify the oil reservoirs,
the iocs came with the liquid cash to fund exploratory oil buisnesses,
they own the patent technology that bring out the oil,
they operate the oil facilities based on their own standard to guarantee efficient oil supply,
while we seat like beaf in abuja hanging agbada left and right decieving ane intimidating nigerians, supplying the serious ioc's with jtf.

did i forget those incompetent corruption goose called NNPC that has failed beyond reach.

sounds like peeps dont know that NPDC a subsidiary of NNPC is tasked for 23yrs to give Nigerians oil solely owned by us, guess what! those incompetent goons are still at 90,000 barells per day after 23yrs of meritorious service,
23yrs of celebrating corruption
23yrs of grand incompetence,
23yrs of wasting billions paying retirees higher than active staff.

Nigeria is very lucky to get 57%.

@jp philip, you just made me to login after reading your long easy. Thanks for the enlightenment sha. I want to point out something to you. The 250,000 b/d mandated by the fg to be consumed locally is not charged. Is part of the JV agreement. Hw can you charge urself for what you own is not true. The 250,000b/d allocated 4 local consumption is drilled by d oil cow and send to NNPC at no cost. So you see if our refineries are working the cost that will be incurred will be only production cost. The transportation cost will be wiped out because the product will be send to depots through pipelines. Nigeria should but their refineries to work. Also, if what you said is true that nnpc decided to sell the 250,000b/d then nnpc should use it to pay 4 d subsidy. Thanks.