The Managing Director/Chief Executive Officer, Total Exploration and Production Nigeria Limited, Nicholas Terraz has identified current economic challenges and difficulties in funding as major factors responsible for reductive in investment and drilling operations in the oil sector.
Speaking at the 2016 Nigerian Association of Petroleum Explorationists Conference Management session held in Lagos, the Total boss said the ugly development has resulted in loss of activity and jobs for contractors providing services for the industry.
According to him, “Throughout 2016, we have faced a challenging economic environment, with an average oil price around $45 per barrel.
“This environment requires us to adapt and reduce cost without compromising safety, while preparing for a future of growth or expansion”.
He said, while the impact of the low oil price was not peculiar to only Nigeria, the country is particularly affected becomes large part of her revenue derives from the hydrocarbon sector.
“In addition to low oil price, Nigeria has also experienced a reduction in production volumes due to security issues”, he said, adding that the development became a challenge to both the government and the industry as government faced revenue shortfall while the oil companies had to adopt to current realities.
He stated that the theme of the conference, ‘Nigeria Oil and Gas Industry-Tackling our realities”, provides a good opportunity to assess the current progress in the sector and the improvements envisaged.
Terraz disclosed that Total had added over 2.3 billion barrels to Nigeria’s production from 1966 to 2015 and in the last five years alone, had made approximately $10billion of investment in the country.
“Despite the challenging operating environment, Total remains strongly committed to the development of its activities in the country, while working relentlessly to adapt to the current environment”, he stated.