‘High cost of oil production erodes revenues, depletes resources ’
Minister of State for Petroleum Resources, Timipre Sylva, yesterday said the high cost of crude oil production in the country often erodes net revenues from sales and depletes resources meant for development.
Sylva, who said the cost per barrel of crude oil production remains one of the highest among Organisation of Petroleum Exporting Countries (OPEC), said everyone should be genuinely concerned and take proactive steps to ensure and curtail the various elements that contribute to the high cost of production.
Speaking at the opening ceremony of the Ninth Annual Practical Nigeria Content (PNC) forum organised by CWC Africa and the Nigerian Content Development & Monitoring Board (NCBMD), he noted that local vendors have an obligation to deliver premium services and support Federal Government’s local content to reduce production cost.
Speaking, Executive Secretary of NCDMB, Simbi Wabote, noted that this year’s edition, like the previous ones, parades seasoned professionals who would share with participants the practical steps they have taken to deepen local content implementation in the oil and gas industry.
He said, “You may recall that as part of our external communications strategy, the Nigerian Oil and Gas Opportunity Fair (NOGOF) conference is the platform where we utilise the Nigerian Content Seminar to zero-in on key provisions of the NOGICD Act and provide direct clarifications on the industry to remove any ambiguities on interpretation and to reinforce understanding.”
He noted that this year’s event with the theme, “Leveraging Local Expertise for Market Growth & Expansion,” was holding in NCBMD’S 1,000-seater Conference Centre.
Also speaking, Managing Director of Aiteo, Victor Okoronkwo, said one of the biggest challenge faced in their operations was the security of its pipelines and oil facilities
“Our pipelines and flowlines are constantly vandalised by crude oil thieves attempting to cause economic sabotage to our Company and the people of this great Country.
“Despite our efforts in raising NCTL uptime from 60 per cent to over 80 per cent since acquisition, we have recorded more shutdown days in operations due to third party infractions for over two months this year compared to previous years.
Besides, the Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday in Abuja said a committee it set up with the Nigerian National Petroleum Corporation (NNPC) would facilitate the process of addressing remedial issues in the oil and gas sector.
While it has often raised alarm over grave areas in the extractive sector through its audit reports, including non-remittance of funds to government confer, little has been achieved in remedying the issues.