IOCs, indigenous oil firms lose N2.26trn to low prices, militancy –

Weighed down by lower crude oil prices, weak refinery margin and renewed militant attack on facilities in the Niger Delta, some International Oil Companies (IOCs) as well as indigenous firms have suffered a loss of over N2.26 trillion in the first half of 2016.

For instance, International Oil Companies like Shell, Exxon Mobil Corporation, and Chevron Corporation, suffered a loss of over $7.1 billion, representing about 70 per cent of its earnings as crude oil prices continued to decline.

On the other hand, Indigenous oil companies like Oando Plc and Seplat Petroleum Development Company are not only contending with low oil prices, but also with production shut-in, which brought about a loss of N43 billion in the first half of the year.

Specifically, Royal Dutch Shell reported the lowest quarterly earnings in 11 years, and missed estimates by more than $1 billion as a mix of lower energy prices, weaker refining margins.
Second quarter 2016 Current Cost of Supplies (CCS) earnings attributable to shareholders excluding identified items were $1 billion compared with $3.8 billion for the second quarter 2015, a decrease of 72 per cent, which is $2.8 billion.