Senate President Wants Reduction In Cost Of Crude Oil Production

Senate

Reduction in the cost of crude oil production
President of the Senate, Ahmad Lawan has advocated for a reduction in the cost of crude oil production by International Oil Companies (IOC’s) operating in Nigeria.

Lawan made the call on Thursday in Abuja, while receiving a delegation of Oil Producers Trade Section (OPTS) in Abuja.

He said that the Petroleum Industry Bill (PIB) at the National Assembly would make provisions for reduction in the cost of crude oil production.

“The cost of production in Nigeria is a major concern in the oil industry, my colleagues in the committees that are oil and gas related know better.

“But from the little I understand, while Saudi Arabia may spend 5 dollars to produce a barrel, we are spending about 30 dollars to produce same in some cases.

“The time has come for us to ensure that the cost of production is beaten down to a more meaningful and profitable production cost.

“We must do everything possible together to ensure that the host communities benefit from wherever they are supposed to benefit from.

” Not only the host community development fund, but in the Niger Delta Development Commission (NDDC) and other areas of government intervention,the Amnesty Programme and Ministry of Niger Delta Affairs.

“How do the host communities benefit, because we need to stabilise those areas so that we have cheaper production costs,” he said.

Lawan, while emphasising the importance of the PIB towards advancing Nigeria’s economy, assured that the Senate would accommodate the interest of international investors in the bill.

He, however, decried low inflow of business investors in Nigeria, attributing it to absence of a legal framework which the PIB sought to address.

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Grace Ihesiulo

Grace is a prolific writer, a Broadcast journalist and a voice over specialist.