Tag Archives: Oil Benchmark

Oil Benchmark To Stabilise By April – NNPC

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The Nigerian National Petroleum Corporation (NNPC), said 38 dollars per barrel oil benchmark is feasible by April as projections suggest that prices will go above the benchmark then.

 
The Group Executive Director, Finance, NNPC, Isiaka Abdulrazak, stated this while briefing the Senate Committee on Finance in Abuja on Tuesday.

 
He said based on projections derived from economic activities across the globe, oil prices would not go below 40 dollars per barrel before the end of 2016.

 

“The winter in the Northern Hemisphere has been very aggressive this year which is good news for us because it is also helping with the oil price. By our projection and the analysis done by international analysts, the oil price should go back to well above 38 dollars per barrel.

 

Toward the end of the year, the most conservative projection for the end of the year is that the price will not go below 40 dollars per barrel.

 

So, we are confident that the current price of 38 dollars per barrel is attainable and sustainable from the budget”, he said.

 
Abdulrazak explained that the economic growth of India and the growth expectations of other economies also suggested that the demand for oil would also increase.

 
He expressed optimism that the tempo in oil and gas production would be maintained if security situation in the region was maintained.

 

 

 

(NAN)

House Of Reps Says Review Of Oil Benchmark Is ‘Certain’

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The House of Representatives in Nigeria says the National Assembly will certainly review the crude oil benchmark price for the 2016 budget.

The possibility of the review was made known on Wednesday by the Chairman of the House of Representatives Committee on Appropriation, Abdulmumin Jibrin.

Nigeria’s 2016 budget had been submitted to the National Assembly in December by the President, with a benchmark of $38 less than the current crude oil price.

This price per barrel has triggered comments about how realistic the budget proposal of 6.07 trillion Naira, with 2.22 trillion Naira deficit and a crude oil benchmark of $38 was.

But on Monday, the Minister of Budget and National Planning in Nigeria, Senator Udo Udoma, tried to allay Nigerians fears, assuring them that the falling crude oil price would not affect the nation’s 2016 budget submitted with the oil benchmark of $38 per barrel.

Senator Udoma spoke at a meeting with members of the National Assembly Committee on Budget and Planning.

He told the lawmakers that there was a plan to cushion all shortfalls that may arise as a result of the drop in oil prices.

According to him, part of the plans would include concession of airports and re-introduction of toll gates on the nation’s highways.

Credit: ChannelsTv

Nigerian Senators Divided Over Oil Benchmark For 2016 Budget

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Members of the Nigerian Senate on Wednesday commenced debate on the Medium Term Expenditure Framework (MTEF) presented to the upper legislative body by President Muhammadu Buhari.

Mr. Buhari had forwarded the MTEF to the Senate on Monday.

Under Nigerian public finance system, the MTEF is the precursor to budget, as well as Fiscal Strategy Paper (FSP), which details spending and revenue projections for three years.

At the Senate plenary Wednesday, lawmakers differed on the $38 per barrel benchmark projected as the price of crude of oil, the mainstay of the Nigerian economy.

Leading the debate, the Deputy Senate President, Ike Ekweremadu, asked the Senate to consider an upward review of the crude oil benchmark for the 2016 budget.

?In his opinion the $38 oil benchmark is “conservative”.

Mr. Ekweremadu therefore urged the senate to peg the oil benchmark for the 2016 budget at $40 per barrel.

“I have looked at the projection for the oil price,” he began, adding that “the benchmark of $38 per barrel appears to me to be conservative. From the projection of oil price for 2016 it is estimated? that it will hover between $40 and $45.

“I like to suggest that the senate consider an oil benchmark of $40. I’m sure that this will help cushion the problems we have in the states.”
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Credit: PremiumTimes