Nigeria oil down-slides further, producing at $5 per barrel loss

Nigeria Oil firms is likely to be producing at up to $5/barrel loss, average production costs for independent and marginal field producers is between $30 and $35/barrel.
   According to Vangaurdng, oil price resumed the free fall, with  Brent crude, similar to Nigeria’s sweet crude grade, falling 2.6 per cent to $31.34 a barrel following a 10 per cent rise on Friday, while U.S. oil shed 95 cents to $31.24.To compound the producers’ woes, a significant proportion of what is produced is lost to oil thieves and pipeline vandals, which they insist are even more dangerous than the bearish run oil prices.

    The Chairman, Petroleum Technology Association of Nigeria, PETAN, Mr Emeka Ene spoke on the impact of oil crash on the producers.
He said:

“Current price is below Nigeria’s average of between $30 and $35 per barrel. Most marginal field producers are producing above $30/barrel, and with pipeline vandalism activities, costs will shoot up by another $10/barrel, so oil production now is not sustainable.”

He also revealed that

“a lot of Nigerian companies are out of work because they cannot compete with the multinationals, so government needs to have a serious talk with stakeholders in the industry.”