Oil majors in Nigeria, under the aegis of Oil Producer Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) has warned that Nigeria is at risk of losing $10 billion (about N2 Trillion) of its revenue from oil and gas in 2015, unless a significant improvement is recorded in the prices of crude oil in the international market.
“We estimate that if crude oil prices average $53 per barrel in 2015, compared to $77.5 per barrel in 2014, the Federal Government of Nigeria’s oil and gas revenue will decline by an equivalent of $10 billion this year, or a gut-wrenching equivalent of 30 per cent,” said Elisabeth Proust, Chairperson of the OPTS.
Proust, who was speaking at the Society for Petroleum Engineers’ (SPE) 2015 Oloibiri Lecture Series in Abuja, noted that the country has already started feeling the impact of the low oil price, as evident in the slowing down or outright cancellation of a number of infrastructure projects across the country.
For the oil and gas industry to unlock its potentials and help position Nigeria to be able to attract the required investment, Proust maintained that the Federal Government has to create a conducive business environment, provide the necessary funding of joint ventures with the Nigerian National Petroleum Corporation (NNPC), and ensure globally competitive fiscals and domestic gas process. [myad]
