Oil price slump: Buhari urges more cooperation among exporting countries

*President Buhari and some Nigerian delegation in a meeting with Iranian Deputy President, Mr Shariat Mardi and other government officials.

*President Buhari and some Nigerian delegation in a meeting with Iranian Deputy President, Mr Shariat Mardi and other government officials.

*Kachikwu explains global gas market instability

Oscarline Onwuemenyi

24 November 2015, Sweetcrude, Abuja – The Federal Government has assured the Gas Exporting Countries Forum, GECF, of its continuous support as it struggles to surmount the challenges that the global oil and gas industry is facing.
This assurance was given by President Muhammadu Buhari at the Third Summit of Heads of State and Government of the GECF Member Countries in Tehran, Islamic Republic of Iran.

The President noted that trying times call for more cooperation and coordination among Member Countries, while thanking President Hassan Rouhani of Iran for the invitation to discuss issues affecting the GECF and reaffirm commitment to the objectives of the Forum.

Meanwhile, the President of the Gas Exporting Countries’ Forum and Nigeria’s Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has outlined reasons why the global gas market is currently unstable.

Speaking at the 17th ministerial meeting of the GECF in Tehran, Iran on Monday, Kachikwu identified market volatility, increasing competition, price war and escalating cost of infrastructure development as the key challenges facing the gas industry in general and the forum in particular.

The minister, according to a statement signed by the Group General Manager, Group Public Affairs Division of the Nigerian National Petroleum Corporation, Mr. Ohi Alegbe, stated that volatility had brought so much uncertainty and instability to the market, thus affecting decisions on investments for long term supply of gas.

He noted that increasing competition occasioned by the surge in new gas producers had led to a price war at a time when the cost of infrastructure development was escalating.

These developments, he argued, were setting the stage for even more challenges for the industry and the GECF member countries in the future.

Kachikwu, however, cautioned against reacting to the current challenges by failing to invest in the industry, assuring members of the forum that the current challenges would come to pass and the market would rebound given the world’s need for energy and the environmental credentials of gas as the cleanest hydrocarbon fuel.

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