By Clara Nwachukwu and Sebastine Obasi
Nigeria may witness a sharp reduction in revenue, as oil, the mainstay of the economy is likely to decline in production in the next five years, if cash call arrears, joint venture (JV) funding and the issue of long contracting cycle are not urgently addressed.
This is coming as the Mayor of Houston, Mr. Sylvester Turner, said that Nigeria’s annual trade with Texas, United States, in the oil and gas industry has hit $15 billion as at 2015.
Expressing this concern at the ongoing Offshore Technology Conference, OTC, taking place in Houston, Texas, the Managing Director of SEPLAT Petroleum Development Company Plc, Mr. Austin Avuru, noted that production from the JVs has continued to decline from 2.2million barrels per day (bpd) to 1.2million bpd as at the last count, due to poor JV funding.
He said: “Go and check production records, you will discover that JV production has declined from 2.2million bpd to 1.2million bpd. The only reason we are still doing 2million bpd is that deepwater production made up for the gap.
“In the next five years, our deepwater production will also be declining and the real impact of poor funding of the JV will start to manifest when as a nation, we will producing not more than 1.6million bpd. So we must begin to address the challenges by doing the right thing,” he said.