Kachikwu gives advice to oil producing countries on cost profile



Minister of State for Petroleum, Dr Ibe Kachikwu has advised oil producing countries to use the fall in oil price to check cost profile in doing business.

Kachikwu gave the advice at the closing ceremony of the 6th African Petroleum Congress and Exhibition, on Thursday in Abuja.

“The industry will still be in challenge in one to two years and I hope that the lesson you take away will help you either as government policy makers or practitioners in the industry, to confront some of the issues.

“ Amidst all these global chaos, reducing prices, lack of investments, loss of jobs, contracting of most of the servicing companies, postponement of major projects, there are some good safer linings.

“It is a good opportunity for countries to begin to look inwards, check their cost profile,’’ he said.

According to him, during the era of 120 dollar per barrel many countries and companies assumed that it will not end and the cost profile was up the bounds.

Kachikwu, who is also the Chairman of African Petroleum Producers Association (APPA), said that stakeholders were framing up the planned meeting of OPEC and non OPEC countries.

He said the meeting would hold on 17th April adding that it would help bring positive change in the industry.

“ Hopefully, it will help to bring up the price higher than what it is today.

“Again in the last two months, because of the work some of us have done, the prices are beginning to be firm.

“ We cannot know the predictions now, but there are signs of hope,’’ he said.

Kachikwu said that presently, countries were looking at the best ways to reposition their companies and countries.

He advised African countries to emulate what countries in the Far East and the Gulf were doing right, especially in the area of governance and savings.

The minister added that a lot of intelligence was required especially now that there is paucity of fund to unbundle challenges in the sector.

Kachikwu noted that the coming together of African countries would help open up space for more investors in the sector in the region.

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