Global oil industry lost N1 trillion to projects’ cancellation, says OPEC scribe

Governor, Organisation of Petroleum Exporting Countries (OPEC), Omar Farouk (left); Secretary General, Mohammed Barkindo; Minister of State for Petroleum, Emmanuel Ibe Kachikwu and representative of the ministry’s Permanent Secretary, Olusegun Adekunle; during the OPEC scribe’s visit to NNPC Towers, Abuja… yesterday. PHOTO: LUCY LADIDI ELUKPO

The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Dr. Mohammed Barkindo, says the global oil and gas sector lost about $1 trillion to the meltdown in the prices of crude oil in the last two years.

Barkindo disclosed this in Abuja yesterday when he paid an official visit to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, adding the amount was lost to projects’ cancellation across the value chain.

His words: “This industry globally lost nearly $1 trillion in terms of deferred projects and outright cancelation of projects across the supply chain and this is the greatest threat facing future security of supplies.

“We need consistent investments to maintain current production levels and take care of reserves and secure future supplies. He restated the determination of OPEC and non-members to build on the steady rise in the price of crude in the last few months to restore confidence of investors.”

Lauding the government’s initiative to stabilise the country despite the drop in crude oil earnings, Barkindo said: “I have been visiting member-countries in the past months and I have seen first-hand how nations have been struggling but in Nigeria, we have not sold our achievements effectively and widely.

“In the seven big win initiatives that you have rolled out, I must single out the lingering funding challenge of exploration and production – the joint venture cash calls.”

The OPEC chief noted that getting out of the cash call crisis was an innovative, effective and practical step that would continue to sustain the industry and the domestic economy.

He hinted that for the first time, the cartel achieved a consensus to adjust about 18 million barrels per day within six months to address the stock overhang, which has been the variable to the supply equation that had sent the market off balance since 2014.

Also yesterday, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, reported that vandalism had dropped by about 30 per cent. He made the revelation while opening the 2017 edition of the Nigeria Oil and Gas (NOG) conference in Abuja.

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