The Minister
of State for Petroleum, Dr. Ibe Kachikwu has announced that Nigeria would
explore the possibility of selling crude oil to African markets. He spoke in
Abuja yesterday at the 2017 edition of the Sustainability in the Extractive
Industries (SITEI) conference.
Kachikwu
said the country’s oil firms must develop the capacity to compete in the
continent, while government provides the necessary incentives. He said:
“Nigeria has to begin by looking at the country first. What do we do to
encourage local companies to be able to compete in Africa? It is along these
lines for example, that we have started product or sector specialisation which
are the areas where we have the most competitive advantages.”
The minister
disclosed that the country would host the 19th conference of the African oil
producers next week, to deliberate on these key areas. He expressed concern
that the country has not been able to capture the African terrain of the
market, adding that the market must be captured in terms of contract awards,
whether in crude, investment or other formulations.
Kachikwu
explained that government was weaving a relationship nexus that would enable it
to look at the African market due to the competitive nature of the environment.
He said it
was difficult to capture America and Europe as their demand base is fast
declining, adding that the only countries that are available are Africa and
Asia.
The minister
stressed that the country’s challenge is how to ensure that every drop of oil
or gas that comes into Africa must be from Nigeria.
“These are
the things that our country and Angola need to fashion out to stabilize
supplies. It would be perused over the next few years, as OPEC’s struggles to
capture its market would become very critical,” he said.
He explained
that Nigeria must also ensure that that there is a drastic reduction in the
costs of production to about $15 per barrel, which could be achieved through
cost reduction initiatives, in conjunction with the implementation of the new
National Fiscal Policy.
“We are in a
phase of development where the issue of infrastructure framework has become
critical. Our downstream infrastructure deficit alone requires that we invest
around $10b in the next three decades.
“We can
never be an economic powerhouse without a vibrant local economy and defined
industrial base. A nation without a solid manufacturing base would slide to
dependency and waste of resources,” he said.
The convener
of the conference, Bekeme Masade, said it was critical for the country to have
a framework that encompasses environmental management, human rights, community
engagement and economic largesse.
The Group
Managing Director of the Nigerian National Petroleum Corporation (NNP), Dr.
Maikanti Baru, explained that production has hit 2.2million per day with a plan
to increase it to 2.5million in the next few years.
Baru, who
was represented by the Chief Executive Officer, (Gas and Power), Saidu
Mohammed, said the resumption of exploration in the Benue Chad Basin was aimed
at increasing oil production.
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