Local firms owe 90% of $8b oil industry debt to banks
April 27, 2020
Our Reporter
While a portion of the loans are hedged at a price as much as $50 per barrel, the bulk aren’t, raising the risk of a default that’s been exacerbated by the threat of production halts because of the dire state of the oil market, which was caused by decline in demand and price following COVID -19 pandemic.
According to Bloomberg report, the demise is a grim reversal for the Nigerian firms. Two years ago, the independents were aiming to add about 250,000 barrels a day of crude output by this year, led by the likes of Shoreline, Aiteo Group and Seplat Petroleum Development Company. An official at Aiteo declined to comment while Seplat officials couldn’t be reached for comment, Bloomberg added.
Source:https://thenationonlineng.net/local-firms-owe-90-of-8b-oil-industry-debt-to-banks/
April 27, 2020
Our Reporter
- Eroton suspends $1.5b well devt
- Debt may push some banks under
While a portion of the loans are hedged at a price as much as $50 per barrel, the bulk aren’t, raising the risk of a default that’s been exacerbated by the threat of production halts because of the dire state of the oil market, which was caused by decline in demand and price following COVID -19 pandemic.
According to Bloomberg report, the demise is a grim reversal for the Nigerian firms. Two years ago, the independents were aiming to add about 250,000 barrels a day of crude output by this year, led by the likes of Shoreline, Aiteo Group and Seplat Petroleum Development Company. An official at Aiteo declined to comment while Seplat officials couldn’t be reached for comment, Bloomberg added.
Source:https://thenationonlineng.net/local-firms-owe-90-of-8b-oil-industry-debt-to-banks/
