Nigerian National Petroleum Corporation (NNPC) Group Managing Director Mele Kyari has said that investors are worried about investing in Nigeria’s oil exploration, a development which has led to a decline in investments in the last ten years.
“Due to lack of clarity in Nigeria’s fiscal terrain, investors are worried about their margins most especially getting back their cost of production which is a huge concern for oil exploration,” Kyari said at the 37th Annual International Conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.
The NNPC boss also raised concerns over the instability in crude oil prices, stating that any oil price above $70 was not favourable to Nigeria’s economy.
“Competition from other energy sources, most especially the optimism in renewable energy, is making it difficult for oil companies to invest deeply in Nigeria’s oil exploration,” Kyari told the audience.
The NNPC boss believes that crude oil would still remain relevant beyond international agencies forecast of 2040.
“Increasing population and growing demand will always remain a factor, which implies there will still be at least an oil consumption of 100 million barrels per day by 2040,” Kyari said at the event.