Industry Crisis: We must bring down crude oil production cost, stop militancy –Kachikwu

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu says two major ways to tackle the crisis in the oil and gas industry is to reduce the cost of production of a barrel of crude oil from about $27 per barrel to about $15 per barrel, even as he stressed on the need to put final stop to militancy in the Niger Delta.

Dr. Kachikwu made the declaration Tuesday February 28 during the opening ceremony of the 2017 Nigeria Oil and Gas Conference and Exhibition taking place at Abuja.

Kachikwu who spoke on reforming and repositioning the oil and gas industry in Nigeria, noted that Nigeria suffered over 30% drop in oil production between 2015 and 2016.      

While declaring that Nigeria didn't invest in infrastructure during the crude oil price boom, revealed that over $45 billion infrastructural gap was being experienced in the country, adding that an average of $10 billion investment is needed annually for the next five years to make up for the infrastructural gap.

He stated that the federal government has initiated a 20-point agenda to revive the oil and gas industry, just as he quipped that the country has recorded zero militancy in the last 60 days.      

The Honorable Minister who later undertook a tour of exhibition stands of the participating oil and gas companies at the conference, praised Chevron Nigeria Limited for its community development as well as the company’s deliberate policy of building local content and capacity of Nigerians within its area of operation, assuring that the federal government will set up policies that will help the IOCs in their oil and gas business.

Secretary General of Organization of Petroleum Exporting Countries, OPEC, H.E. Mohammad Sanusi Barkindo in a keynote address gave credit to Dr. Kachikwu for the concept of freeze in crude oil production, which has led to reasonable increase in the price of crude oil at the International Market.

While describing Dr. Kachikwu as agile and ambitious, the OPEC Scribe acknowledged that 2016 was tough year for the oil industry in terms of production.

According to him, oil demand growth decelerated in 2016 and non-crude supplies increased, required capacity additions dropped.

Addressing select Journalists from Fresh Angle International,Punch Newspaper,Tribune Newspaper and Editor of an Energy medium during a luncheon,The General Manager, PGPA Chevron, Mr. Brikinn Esimaje, averred that Chevron Nigeria Limited “see the media as important stakeholder in the business that we do”, saying the company is transparent in its operations.    

Chevron Boss, Jeff Ewing, Brikinn Esimaje & others at Chevron Exhibition Stand

Other key officials of Chevron Nigeria Limited who spoke during the lunch jaw-jaw include: Mr. Shola Adebawo, Mr. Sam Daibo and Mr. Kayode.

They tasked media practitioners on objectivity and balance in reportage, just as they admonished the media to zero-in on the environmental implications of crude oil spills caused by the activities of illegal bunkerers.

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