‘Nigeria oil sector needs to position itself for survival post COVID-19’

97418308 2623416534562454 4797839397208719360 oNigeria oil sector regulator, Department of Petroleum Resources (DPR) has identified cost control and management, portfolio rationalisation, strategic repositioning, business optimisation and strategic partnership as the strategic plan and policy for the survival and success of the Nigeria oil and gas industry post COVID-19

CEO Sarki Auwal said that for Nigeria oil and gas to survive and thrive post COVID-19, there is need to consider four points: “The first which is cost control and management, realignment of cost of production per barrel as well as corporate, business and financial stewardship

“The second is portfolio rationalisation and asset optimisation. For this, there would be project screening and maturation; and contract re-negotiation.

“The third step to achieve strategic repositioning and business optimisation – new business and operational resilience, which include vertical integration model covering the refineries, operational excellence and compliance.

“The last in that stage is strategic partnership; contracting models; service provider open Access; and shared risks and returns.”

Auwalu said the depreciation of the price of oil had directly impacted on the Nigeria economy. “The sector is responsible for about 80 per cent of the government revenues as it is also the principal source of foreign exchange earnings and Foreign Direct Investments (FDIs).

“There are, expectedly, direct impacts of falling oil prices on the country, which include; change in Budget benchmark as well as the revised 2020 budget.”

He said the year 2020 has been positioned as the gas year in Nigeria and there will be a lot of gas development activities and the department is also looking at the marginal field bid round.

He added that in 2020, the Department of Petroleum Resources will embark on business, environment and investment drive, tweaking policy and business regulations, extensive use of online resources, work tools and electronic media.

“The global economies gradual easing of lockdown, slow, sustained growth in the economy and changing work environment and work processes are signs that we will need to work and live around it. Businesses must swim to remain afloat or simply drown’ and to know that challenges creates opportunities,” he concluded.

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