‘Oil production in Nigeria costs 40% more’




The Chief Executive of Seplat Petroleum Development Company Limited, Austin Avuru, an indigenous independent oil production and exploration company, has lamented the high cost of oil production and exploration in Nigeria. He said it costs 40 per cent more to produce than in other countries.

Avuru, who spoke during the Petroleum Technology Association of Nigeria’s investment forum at the on-going Offshore Technology Conference in Houston, Texas, said high production cost is a serious disincentive to indigenous marginal operators.

During the panel session, which focused on the Petroleum Industry Bill (PIB) and its challenges, he noted that the majority of the stakeholders had focused on fiscal terms of the bill, while neglecting the high cost of exploring and producing oil in the country.

He said: “Today, the cost of oil exploration and production in the country is 40 per cent higher that what it should be. We want a PIB that will address this issue.”

 







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