…Insists on reduction of oil production cost
By Michael Eboh & Prince Okafor
Minister of State for Petroleum Resources, Chief Timipre Sylva, Tuesday, disclosed that the Federal Government and the entire country is relying heavily on revenue from the Nigerian petroleum industry to finance the country’s annual budget and for the development of critical infrastructure.
Based on this, Sylva, who was speaking in Bayelsa, at the ongoing 9th Practical Nigerian Content, stated that the Federal Government would not tolerate practices that would erode revenue from crude oil.
Specifically, he noted that the government would not allow local content to become an excuse for cost over runs, slippages in project delivery schedule or shoddy jobs.
Sylva further stated that stakeholders should be genuinely concerned that the country’s cost per barrel of crude oil is one of the highest among OPEC countries, noting that this high cost of production often erodes the country’s net revenue from crude oil sales and depletes the resources meant for development.