Key multinational investors in the Nigerian petroleum industry have advised government to take effective measures to address massive production leakages and associated cost impact on operations in order contend with expected shortfall of some $10 billion dollars in the country’s oil export earnings in 2015.
The Oil Producers Trade Section (OPTS) of the Organized Private Sector (OPS) stated in a position paper to be presented to government that slide in the prices of crude oil and natural gas at the international market would take inevitable toll on the nation’s earnings in the year, warning that current massive stealing of crude oil in the country could exacerbate the revenue to legitimate stakeholders.
The call comes as half year financial results of quoted oil companies in the country indicate that local setbacks associated with crude oil stealing and facility vandalism escalate operations cost and whittle down profitability of ventures in the upstream sector of the industry.
Chairman of OPTS, Mrs Elisabeth Proust, had declared in Abuja that the steep fall in oil prices has impacted budgets of governments and oil corporations, adding that Nigerian economy remains exposed to the risks of lean returns from the market. She said Nigeria must take certain measures in the industry to minimize