Marginal field producers need to keep production cost under $20 per barrel 0

 

Nigerian oil firms, especially marginal field operators, need to keep the production cost of crude oil at sub-$20 per barrel to remain competitive and maintain profitability in this era of low oil prices and battle for market share, BusinessDay reports.
Speaking at the 40th edition of the Society of Petroleum Engineers NAICE 2016, Ademola Adeyemi-Bero, managing director, First E and P Development Company Limited said there was a need for marginal field operators to focus on production costs so as to deal with the tripartite problems of low oil prices, forex challenges and renewed insurgency. He also maintained that government should urgently address reform lethargy as it had significantly impacted on investor confidence, adding that certainty and growth in the marginal fields would also help shape productivity to drive the country’s economy.
Felix Amieyofori, managing director, Energia Company Limited, said Nigeria had much bigger issues with security in the country at the moment, especially in the oil and gas industry, saying that growing uncertainties in several parts of the country had further heightened drilling risk, development of marginal field risk and price volatility in the foreign exchange market. Gbenga Onadeko, senior vice president, Weltec, also said with improved technology, marginal field operators could further drive their cost down and improve their production output.