24 March 2014, Abuja – The Vice President of Shell Upstream International, Mr. Markus Droll has said that decline rates in crude oil production within Nigeria’s hydrocarbon industry can be as high as 15 to 20 per cent.
Droll also said that replacing such natural production decline rates in the industry requires more funds than is currently available and that the peculiar high cost operational environment of Nigeria has further compounded the situation.
But the Nigerian National Petroleum Corporation, NNPC, has blamed high costs of oil and gas projects that were packaged by International Oil Companies, IOCs, operating in the country for the shortfalls in funds needed to complete ongoing projects in the sector. While speaking on the growth strategies for Nigeria’s oil and gas industry vis-à-vis driving exploration and boosting reserves levels at the just concluded 2014 edition of the Nigeria Oil and Gas (NOG-14) conference and exhibition in Abuja, Droll explained that oil and gas companies in Nigeria would have to look for innovative ways to inject additional capital.
*Chineme Okafor – Thiday