The Managing Director and Chief Executive Officer of Seplat Petroleum Development Company Plc, Mr. Austin Avuru, has stated that the crisis in the Niger Delta has interrupted a major transformation of the Nigeria’s oil and gas industry, which was initiated a few years ago to increase oil and gas production for the attainment of 15,000 megawatts of electricity and also boost economic development of Nigeria.
While the Seplat boss said the real solution to the crisis was not yet in sight, the Chairman and Managing Director of Chevron Nigeria Limited, Mr. Clay Neff said transparency by all the stakeholders could resolve the security challenges in the oil-producing region.
Speaking yesterday in Lagos at the opening session of the 2016 Nigeria Annual International Conference and Ehibition (NAICE) of the Society of Petroleum Engineers (SPE), Avuru stated that the crisis in the oil-producing region has locked in 70 per cent of oil and gas production from the traditional onshore and shallow water terrain.
Avuru, who said he was hopeful that oil and gas production would fire up by 2020, however added that he was not aware of any real solution to the Niger Delta crisis in the nearest future.
“A year ago, we were battling with the drop in crude oil prices. Today, we are battling with zero production; zero revenue and zero everything. For upwards of five to six months, some companies operating in Nigeria have not been producing. Some of us no longer check the oil price; it has become irrelevant. Oil price is only relevant when you produce,” he explained.