The Group Chief Executive Officer of Oilserv Limited, Mr. Emeka Okwuosa, has said that the cost of producing a barrel of oil in Nigeria at over $20 is very high and uncompetitive compared with other oil-producing countries, The Nation reports.
Okwuosa, who spoke on the sidelines of the Offshore Technology Conference in Houston, Texas, United States (U.S.), said the fall in oil price is not Nigeria’s problem but the problem is that of undue cost of production which makes operation uneconomic. He said the rise and fall in oil price was normal in the industry and should be expected.
He also noted that there is need to drastically reduce the frame in tendering processes of oil and gas contracts as such lengthy periods add to cost escalation. So efforts should be made by relevant agencies to reduce tendering processes in Nigeria to be at par with other countries of the world, he said.