17 Aug

Daily Watch – 700 NNPC staff to go, Iran to enter the market with a bang

  • A new round of lay-offs could axe at least 700 NNPC staff. Those to be relieved of their duties will include salary grade M5 staff, who are mostly senior managers, but the bulk of those to be affected would be in subsidiaries of the oil company, and the exercise will be conducted by the new group general managers.
  • World oil demand is expanding at its fastest pace in five years thanks to rebounding economic growth and low prices, but the current global oversupply will last through 2016, the International Energy Agency IEA said. The supply overhang is expected to persist through 2016 – suggesting global inventories will pile up further.
  • Iran has selected 45 oil and gas projects to show international companies at a conference in London in December when new oil contract models will be discussed ahead of exploration auctions to double the country’s crude output, according to Mehdi Hosseini, chairman of Iran’s oil contracts restructuring committee. Oil producers such as BP and Royal Dutch Shell have expressed interest in developing Iran’s reserves, the world’s fourth biggest, when sanctions are removed following last month’s nuclear agreement with world powers. Iran is hoping to boost crude production to 5.7 million barrels a day, the chairman said. Its oil reserves are estimated at 157.8 billion barrels by BP, enough to supply China for more than 40 years.