The Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Ibe Kachikwu on Monday said the industry was facing a sharp drop in revenues from the country’s oil assets. He said this at the 33rd Annual International Conference and Exhibition organised by Nigerian Association of Petroleum Explorationists (NAPE) in Lagos. The NNPC boss was represented by the Group General Manager, Nigerian Petroleum Investment Management Services (NAPIMS), Dafe Sejebor. He said the nation should put up strategies to stay afloat in order to mitigate the impact of the fall in oil price in the industry and on the nation.
The GMD listed survival strategies to include external financing, operational optimisation, review of fiscal terms, strategic merger and acquisition. Others are re-engineering business models, reduction in operating expenditure cost, and financial resilience. Chikwe Edoziem, president of NAPE said low crude oil price should be seen as an opportunity to be efficient at every point along the value chain of the industry. He said that the nation’s crude oil reserves, in the last five years had remained stagnant at 37 billion barrels, which was achieved in 2010. He added that Federal Government target of 40 billion barrels by 2020 would remain a mirage if Joint Venture (JV), which is the country’s largest upstream arrangement in the industry, remained under-funded. He urged government to give consideration to putting in place a self-adjusting fiscal regime that would take cognisance of the vagaries of crude oil price.