Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Oil companies decries rising cost of oil and gas projects

20 March 2014, 19:09

Abuja - International Oil Companies (IOCs) has said that the rising operational cost was threatening the growth of the Nigerian petroleum industry.

The IOCs made this known at the ongoing 2014 Nigerian Oil and Gas Conference in Abuja.

The group expressed the fear that the rising cost of production might adversely affect the sector’s growth.

The Chairman ExxonMobil Companies, Mark Ward, noted that the challenges of cost were necessitated by aging infrastructure, crude theft and difficult contracting process.

Ward, who is ExxonMobil Managing Director, said facilities that were used in the early days of oil discovery in Nigeria were still being used in the sector.

He said this was a serious challenge militating against the sector.

The Managing Director of Shell Petroleum Development Company, Mutiu Sunmonu, said that issues of cost inefficiency were capable of killing the oil industry.

Sunmonu noted with concern that cost inefficiency would also make it impossible for both government and stakeholders to achieve their aims for the sector.

According to him, the major drivers of costs are delay in the contracting process, the security situation and the challenge of funding.

The Chief Executive Officer/Managing Director, Midwestern Oil and Gas, Adams Okoene, expressed regrets on the high tax regime in the sector and the issue of limited assets.

Victor Briggs, Managing Director, Nigerian Petroleum Development Company (NPDC), who spoke on behalf of the Independent, Small or Marginal Field Operators, said the ability of small producers were constrained.

Briggs said the small producer ability to drive sustained growth in the sector was constrained by limited assets, inadequate technical and financial resources.

All these factors, according to Group Managing Director, Access Bank Plc., Herbert Wigwe, were responsible for the inability of the oil companies to get support from banks.


For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...