In an interview with Mr. Felix Amieyeofori, Managing Director of Energia Limited, he disclosed that excess oil supply, oil market instability and other issues have crippled operations in Nigeria’s oil industry, Vanguard reports.

Speaking on the major challenges that hinder operations in the oil and gas industry, he said; “Security and militancy are the main issues. Another problem is the unstable oil price, which is fuelled by the problems of shale oil and oil supply glut. There is also cash trap in the country due to past investment in International Oil Companies, IOC divestments, and of course the foreign exchange issues.”

On how they could be tackled he said; “Government is working hard to resolve the Niger Delta problems and we hope this will provide the needed incentive for further investment in the oil and gas sector. Government is also working hard to deal with the pockets of security challenges in the country. They are also working on the PIB or the Governance Bill and we hope that will be passed soonest to give the industry another platform for growth.”

He said that Energia currently has a production capacity of 7,000 barrels per day, bpd but is looking to producing 15,000 bpd in the near future, hopefully as the oil firm resumes full production and injection through the Forcados Terminal. He also added that the company would want to participate in the upcoming marginal fields bid round once it is out as it would want to grow its assets further.