21 Sep

Daily Watch – Non-oil sector surges, ExxonMobil calls FG out

  • Ratings service, S&P’s recent rating of the Nigerian economy is showing that Nigeria’s non-oil sector is resilient and resurging, analysts are saying. The service maintained Nigeria’s long- and short-term foreign and local currency sovereign credit ratings at ‘B+’. “A series of reforms, including in agriculture, and the rapid growth of sectors such as telecoms and financial services have contributed to non-oil growth momentum in recent years,” S&P said in a statement.
  • ExxonMobil is accusing the federal government of failing to meeting its side of cash call obligations under the joint venture assets held by the company and the Nigerian National Petroleum Corporation (NNPC). Manager of Field Law Services, Omojuwa Oteri, said the company’s production has declined by 53 per cent over a 10-year period because of the failure of NNPC to honour its obligations. Oteri also said that the global oil price trend affects profitability of business and outlook for investments. “The reality in which we have seen the value of our business is almost eroded by global downward trend of event. Our capacity to invest in our business is impacted by this reality,” he said.
  • More recently, on Sunday, the NNPC announced that it secured a $1.2 billion multi-year crude oil drilling financing package to enable it drill 36 offshore and onshore oil wells under the NNPC/Chevron Nigeria Limited Joint Venture arrangement. The deal, which has been described as a landmark move is designed to supplement the federal government’s Cash-Call commitment to its various joint venture arrangements, Group General Manager of Public Affairs, Ohi Alegbe said. Also, the new deal will serve as a template for its future financing of upstream oil and gas operations.