EMEKA OKOROANYANWU
Minister of State for Petroleum Resources, Dr Ibe Kachikwu wants indigenous oil producing companies to step up their investments and take over major operations from international oil companies, especially as many are already considering divesting and charting new paths.
Exxon Mobil last week announced plans to exit Nigeria’s oil production space and expressed its willingness to sale its holdings at over $30 billion.
Besides, the Minister emphasised the need to double oil production to four million barrels per day as against the present daily turnover of between 1.9 to 2mbpd.
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According to him, changes in the global oil and gas industry are presently challenging the present exploration and investment strategies as oil is fast becoming a degenerating asset with alternative sources of energy taking over and attracting new investments.
He noted that while the world is moving on from fossil fuels, Nigeria was yet to take advantage of the opportunities in the sector and design strategies to harness advantages of renewables.
He, therefore, urged indigenous firms to take over and stop playing safe if they will benefit from the opportunities availed through new trends in the industry.
Kachikwu said that the Federal government has succeeded in ensuring that cost of crude production was reduced to $23 per barrel from about $32, adding that some companies in the Joint Venture with NNPC have already driven the cost down to $15, adding that efforts were on to further ensure the cost were brought down to below $15 per barrel.
He added that the Federal Government was keen on ensuring that the country’s refineries work.
He noted that efforts to bring down cost of production should not be by the government or through policies, but should be driven by the private sector.
Kachikwu said that government was also working towards ensuring zero gas flare by 2020, adding that the present adminstration had impacted positively in the oil producing States
