Minister says FG will stop oil production if cost remains high
The minister noted that only oil companies that are able to drive down costs will thrive in the country with the high production costs.
Ibe Kachikwu
Recommended articles
He disclosed this on Monday, July 31, 2017, while speaking at the opening ceremony of the Nigeria Annual International Conference and Exhibition organised by the Society of Petroleum Engineers in Lagos.
In his remarks, the minister said, "When you look at the cost of production in Nigeria, it remains blatantly high. Our cost per barrel today is about $27 per barrel for JV (joint venture) fields. In Saudi Arabia, it is about $9. So we are way apart in terms of cost that anything that happens will hit us very hard.
"Even though we have been singing over the last two years that we need to drive cost down, the current figure that I still have showing me the numbers of last year have not shown me a major dramatic reduction in the cost of production.
ADVERTISEMENT
"There is no way this country will produce oil at this sort of swelling prices that we see; there will be no margins left for this country.
"For me, you rather leave the oil in the ground than produce at a cost that doesn’t make sense. So, cost is going to be a very high driver. So that is certainly one area we are focusing on; we are working collaboratively with oil companies.
"But let’s make no mistake about it: If we cannot negotiate it down, we will compel it or we will stop the production; it does not make any sense."
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
Recommended articles
Like Bobrisky, EFCC drags Cubana Chief Priest to court for spraying naira notes
Israeli military leaders to hold third meeting on how to deal with Iran
Nigeria's telecoms sector witnesses revival as NCC's leadership draws acclaim
Like Ganduje in Kano, Kaduna Assembly opens investigation against El-Rufai
DNA on Chidinma's dress matches victim, Ataga in alleged murder trial
NDLEA destroys 300 tons of illicit drugs in Lagos, Sanwo-Olu praises effort
Ogun Assembly moves to amend law to address logjam, improve services
Embattled Ganduje hit with fresh corruption charges by Kano's anti-graft
NCAA suspends licences of 3 private jet owners for violating its regulations
Pulse Sports
Lionel Messi's son breaks the internet after scoring five goals for Inter Miami
Naija Stars Abroad: Onyedika, Boniface, and Osimhen shine across Europe
Victor Osimhen and Tobi Amusan make list of Forbes’ 30 under 30 Class of 2024
Alex Iwobi makes Premier League history which Mikel, Yakubu, Kanu could not achieve
Like Michael Jordan - Details of Victor Osimhen’s ‘superhuman’ jump against Monza emerges
ADVERTISEMENT
![3-day Sallah holiday will negatively affect Nigeria's struggling economy [Premium Times Nigeria]](data:image/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'300'%20height%3D'172'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E "3-day Sallah holiday will negatively affect Nigeria's struggling economy [Premium Times Nigeria]")