Expert Lists Oil, Gas Field Operators’ Challenges

The Managing Director, Metib Oil and Gas, Mr Adewumi Ilori, has attributed the lack of fund and technical capacities as constraints confronting marginal field operators.

Ilori told newsmen in Lagos on Saturday that such limitations were some of the reasons several fields had not commenced production decades after they were allocated.

He said the programme, which was meant to boost local participation in oil exploration, had not contributed significant value to the sector because only 11 out of the many allocated field were producing.

“The most threatening problem facing small companies is bad wells. You are gone once you drill a well in a wrong place.

“Hence, it is critical to get correct data. The more quality your data, the more confident you are. And you need to start producing before you can get funding from banks.

“That is the most critical challenge. Before you bid, it is important you have some money to do some basic things. This is because partners will rip you off if you don’t have some degree of financial backing,” he said.

Ilori warned marginal field operators to be more sensitive to their host communities’, aspirations and dynamics.

He said that the relationship between operators and host communities was crucial to production process.

He also said that host communities, especially those in Delta State, were properly and fairly engaged by operators.

According to him, five per cent returns are given to oil producing communities even before government’s pronouncement on the issue.

The question, he said, should border on how the funds would be equitably administered so that it does not end up in few hands.

He said it would be better to educate host communities that business ventures have to make money before they can engage in charity activities.