Chikezie Nwosu, the director technical at Addax Petroleum, talks to TOGY about project costs in the lower oil price environment, the outlook for Nigeria’s oil and gas industry and encouraging gas production in the country. Addax operates OMLs 123, 124, 126 and 137 with 100% stakes as well as holding a 12% share in the Okwok licence.
On oil prices he said: “Since oil prices have gone to USD 60-70 per barrel, things are slowly starting to change again. It looks as if lessons have not been learned. The cost-effective mentality has to be sustained even if oil prices are high.”
On dry gas he said: “In order to stimulate gas production, however, we need to make sure that we incentivise the production of Nigeria’s resources of dry gas, acknowledging that not all gas across the country is the same type of gas.”
On policy he said: “The government is rightly trying to remove the current tax allowances and replace them with production allowances so when you make a production promise and meet it, then you can get the boost. That will drive cost-efficiency.”