Crude Oil importation from Nigeria and Saudi Arabia is likely to be a thing of the past following Iran’s return. This was made known by South African Petroleum Industry Association (SAPIA) executive director Avhapfani Tshifularo.
Reports said that Avhapfani Tshifularo made this statement known to journalists. He expressively said that with the return of Iranian oil exports, there are tendencies that it would displace the importation of fuel from Saudi Arabia and Nigeria.
In his words, Avhapfani Tshifularo said “The re-emergence of Iranian crude oil provides options for those willing to buy from Iran. Iranian imports are likely to displace the Nigerian and Saudi Arabian crude, since they seem to have filled the gap since South Africa stopped importing Iranian crude oil”.
However, this might not go down well with Nigeria because it would be recalled that Nigeria predicted an oil price of $38 per barrel in the recently presented 2016 Budget.
Iran’s return came after sanctions on it’s crude oil ban was lifted. When it comes to oil business, Iran stands tall because it is OPEC’s fifth biggest producer. It would be recalled that South Africa had to run to Nigeria for fuel importation and Saudi Arabia too, who happens to South Africa’s highest exporter when Iran was sanctioned by OPEC over it’s nuclear programme. It also on record that South Africa imported fuel from Iran last in 2013.
More so, following Tehran’s enactment of steps carved out for the stop implementation of it’s nuclear ambitions, the US agreed at the weekend agreed to lift sanctions aimed at Iran’s oil industry. Tehran is the capital of Iran and also Tehran Province. Iran also postulated that plans are on ground to get exports back to 2mbpd. MBPD is a unit of oil measurement which stands for Million Barrels of Oil per Day. With this achieved, Saudi Arabia would be stepped down. Saudi Arabia is Iran’s main competitor.
On Monday, the price of Brent crude went below $28 per barrel. This significant change is seen for the first time in 12 years. Obviously, Iran’s return is a brilliant development as smiles are seen on the faces of oil traders. It is imperative to note that an estimated 1.5 million barrels per day excess inventory has been predicted but OPEC’s fifth biggest oil producer – Iran said it would not be deterred by those facts as it would hurriedly supply more crude to the market since sanctions on its crude oil exportation have been lifted.
In Nigeria, the National Bureau of Statistics (NBS) data released lately shown that the country’s revenue accruable to the Federal Government from the petroleum sector witnessed a sharp decline. The data portrayed a drop to N5. 271 trillion in the country’s gains from crude oil export for a period of nine months. (January -September 2015).
Iran is expected to hold it’s 20th International Oil, Gas, Refining and Petrochemical Exhibition this year. The exhibition holds from 6th to 9th May 2016.Also, the exhibition seeks to flaunt a wide range of technical and industrial abilities of Iran and other allies worldwide in the area of Oil, Gas and Petrochemical.