Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Trico Marine Services (TMAR) -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (703)	8/24/1998 3:26:00 PM
From: D.J.Smyth	Respond to of 1153

13:45 DJS Analysts Say Nigerian Actions Seen As Move To Improve Oil Sector 13:45 DJS Analysts Say Nigerian Actions Seen As Move To Improve Oil Sector LONDON -(Dow Jones)- Nigerian military ruler Abdulsalam Abubakar's decision over the weekend to temporarily eliminate the post of oil minister may herald a concerted effort to improve the country's beleaguered downstream oil sector, analysts said Monday. Rather than reappoint Oil Minister Dan Etete to his new cabinet, Abubakar has opted to oversee oil policy through a special adviser to a new Directorate of Petroleum Resources. Abubakar is expected to appoint Dalhatu Bayero, managing director of the Nigerian National Petroleum Corp., as his special adviser, according to industry sources. An oil minister is expected to be reappointed after the promised return to civilian rule by next May. Charlie Weeks, Africa analyst at political and security risk consultancy Control Risks Group, says Abubakar would probably like to personally direct government attempts to improve the country's downstream sector, which includes refining and marketing activities. The sector has been plagued by fuel shortages because of the country's dilapidated refineries and cross-border smuggling, says Leo Drollas, chief economist at the London-based Centre for Global Energy Studies. Under a scheme approved by Abubakar, four multinational oil companies operating in Nigeria - Royal Dutch/Shell Group, Agip SpA, Elf Aquitaine SA (ELF) and Mobil Corp. (MOB) - have been asked to import larger quantities of refined products. Industry sources said the government has refused to pay for some shipments contracted under the previous regime, saying the prices were too high and some material failed to meet specifications. Weeks said Abubakar is also looking to address corruption seen in the oil industry under the rule of his predecessor, Sani Abacha, who died in June. Nigeria's upstream sector - or exploration and production - is considerably more efficient than the downstream, with production-sharing agreements with foreign companies generally operating efficiently. But production stoppages as a result of localized unrest in the oil producing areas and spills continue. Shell Nigeria shipments from Bonny and Forcados have been subject to force majeure since Saturday. A force majeure protects oil companies from legal action when they are unable to meet delivery schedules for reasons beyond their control. Nigeria's share of oil production within OPEC has increased since 1990, noted Drollas. Nigeria produced 2.15 million barrels per day of crude in July 1998, according to a survey of secondary sources by OPEC. The new Nigerian cabinet was sworn-in Saturday but will only last until the civilian handover. Among the key positions, Ignatius Olisemeka, who served as ambassador to Washington and Tel Aviv, has been appointed foreign minister while Ismaila Usman, a known anticorruption figure, was appointed finance minister. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved. (:E) (:ELF) (:F.AQU) (:I.AGI) (:I.ENI) (:MOB) (:RD) (:SC) (:U.RSH) (:U.SLR) 08/24 1:45p CDT oil is even up slightly today. very strange. we bought again at $8. can't figure this one other than overpriced above $40, and way underpriced here. makes more sense at $40 than at $8