that declining oil prices may derail the local
policy of
– The companies advocated for low
maintenance and operational costs of
existing assets.
– According to them, there should be cost
reduction of operations and projects through
local capacity development,
The indigenous companies operating in
Nigeria, on Thursday, May, 5, said that
declining oil prices may derail the local
policy of the federal government as
international oil companies (IOCs) continue
to cancel their capital projects, news men
reports
The companies speaking at the Offshore
Technology Conference (OTC), taking place
in Houston, Texas, advocated for low
maintenance and operational costs of
existing assets, elongating lives of assets
through proactive local supports, cost
effective implementation of projects and
utilizing local resources to reduce the overall
cost.
According to them, there should be cost
reduction of operations and projects through
local capacity development, indigenous
working assets acquisitions, developing local
expertise, low maintenance and operational
costs of existing assets and elongating lives
of assets through proactive local expertise.
Bank-Anthony Okoroafor, the chairman of
Petroleum Technology Association of Nigeria
(PETAN) said there is need to leverage on
existing in-country capacity, adding that
Nigeria should vigorously focus on reserves
and production growth, which has been on
the decline.
According to Okoroafor, if the country can
leverage on proven Nigerian companies and
in-country capacity building, proper
implementation of the Nigerian oil and gas
industry content development will
significantly drive down the cost of doing
business in the oil industry and cushion the
effects of the low prices.
The acting executive secretary, Nigerian
Content Development and Monitoring Board,
Mr. Daziba Obah, speaking at the event said
that with the right support and environment,
indigenous companies are in a better
position to provide services and processes
at much lower cost without compromising
standards
Meanwhile, the price of crude oil has on
Monday, May 2, dipped after enjoying a
strong rally last week . It was gathered that
US benchmark West Texas Intermediate
(WTI) slipped 42 cents, or 0.91% to $45.50,
while Brent crude sank 55 cents, or 1.16% to
$46.82. This comes just days after WTI rose
5.0% and Brent 6.7% to push the month of
April’s gains to around 20% for both
contracts.
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