Global oil price decline: NNPC proffers solutions for Nigeria

NNPC Towers

NNPC Towers

25 April 2015, Lagos – Amidst the growing challenge of dwindling crude oil prices faced by the global oil and gas industry, the NNPC has offered strategic solutions aimed towards cushioning the effects for Nigeria.

NNPC’s Coordinator, Corporate Planning & Strategy, Dr. Timothy Okon provided these solutions while speaking at the 2015 Oloibiri Lecture Series & Energy Forum, OLEF, held at the Shehu Yar’Adua Centre in Abuja, recently.

According to Dr. Okon, the Nigerian Oil & Gas Industry would have to adapt to the new realities facing the global sharp decline in crude oil prices which include the realities of politics, environment, technology and the economics of scale.

To address these challenges, Dr. Okon advocated solutions such as the speedy passage of the petroleum Industry Bill (PIB), restructuring of the public finance, focusing on more profitable entities and the review of spendings on capital expenditure.

Other solutions, Dr. Okon observed, include the removal of fuel subsidy, exploring Asian markets, optimization of local refineries as well as delivering gas projects (LNG and other domestic gas obligations).

In his remarks, the Group Managing Director of the NNPC, Dr. Joseph T. Dawha who was represented by the Group Executive Director, Gas & Power, Dr David Ige called for institutional collaboration between the NNPC and the International Oil Companies (IOCs) in the quest to make Nigeria an investment hub for oil and gas business.

He also urged the various stakeholders to ensure that concerted efforts are geared towards cost reduction and addressing the menace of crude oil theft, vandalism of pipelines and other oil and gas installations across the country.

Also speaking at the occasion, the Chairman of the Oil Producers Trade Section (OPTS) and Managing Director of Total E & P Nigeria Ltd (TEPNG), Mrs. Elisabeth Proust said decline in crude oil prices was not new to the industry as it has been witnessed in 1986, 1998 and 2009.

She called for more investment in technology and opening up of new frontiers in the nation’s oil and gas industry which will engender healthy competition towards unlocking the enormous potentials of the industry.

In his welcome address, the Chairman of the SPE Nigeria Council, Mr. Emeka Ene said Nigeria must think outside the box in order to face the current realities of decline in crude oil prices.

There were also goodwill messages from the programme sponsors such as Shell, ExxonMobil and the Integrated Data Services Limited (IDSL), a subsidiary of the NNPC.

This year’s event, which is the 25th in the history of the SPE Oloibiri Lecture Series, has as its theme “Global Oil Price Dynamics: Impact & Strategic Solutions for Nigeria.”

It discussed the current dynamics in the global oil and gas industry, taking a view on potential solutions to insulate Nigerian economy from falling oil prices and creeping operational costs.

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