Brent Crude now trades below $30 per barrel
The consistent fall in the global prices of oil has provided motivation for Nigeria’s oil producer, The Shoreline Group to sack 700 employees of the company.
According to Mr. Kola Karim, the firm’s Chief Executive Officer, it has also stopped plans to issue $500m worth of Eurobonds.
With the fall of UK’s Brent Crude, specifically trading below $30 per barrel and the Central Bank of Nigeria’s forex restriction, there is no other way to deal than to reduce the cost of manpower.
Speaking further, Karim said “We went on a roadshow and the world of oil collapsed. We’re going to wait until the end of the first quarter and see how stable the markets are. Mid-last year, our projections were $60 oil for the next five years”.
The company is one of several local businesses that bought fields in the oil-rich Niger Delta region after foreign companies, including Royal Dutch Shell Plc, Total SA and Eni SpA, sold onshore assets.