The Nigeria Association of Petroleum Explorationists (NAPE) has decried the decline in crude oil price at the international market.
Crude oil price was selling at $81.03 per barrel in October 2018 but fell to $58.09 per barrels as at 16th October 2019. This represents over 28 per cent decline in one year.
Speaking to journalists in Lagos ahead of the association’s 37th Annual International Conference and Exhibition, the National President, NAPE, Ajibola Oyebamiji, stated that the association observed that the low oil price regime has led to dwindling reserves, more burdens on foreign reserves, pressure on infrastructure and social services, inability to meet commitments to institutional lenders.
He also argued that other challenges bedeviling the oil and gas sector which stakeholders will address at the conference include the procurement and contracting cycles which is about 36 months making it the longest and most inefficient in the world.
“The long contracting cycle results in high levels of uncertainties in costing and planning thereby creating a sluggish business climate,” he said.
He however concluded that there is an improvement, but the reality is that we still find that the contracting cycle still exceeds what ought to be for investors, especially for the International Oil Companies (IOCs) who needs quick decisions.
“They need a shorter contracting cycle, shorter time to achieve this. In some other countries, even nine month is too much not to talk of between nine months to 36 months. Though there is little improvement in some areas but it is not all encompassing, it doesn’t cover the entire life cycle of oil and gas projects,” he said.
He said it is against the backdrop of the foregoing that NAPE will at its 37th edition of its annual conference be deliberating on the Petroleum business and regulatory environment with a view to addressing the challenges of exploration and production in the onshore, offshore and frontier basins.
