Oil Industry practice: Nigeria needs increase transparency

By Yemie ADEOYE
LAGOS-Oil and Gas companies in Nigeria have been urged to increased the transparency level of their business operations as part of strategies to survive crude oil price fall. 
 
OWAManaging Director of PennWell International, Mr. Glenn Ensor who made this submission said from a strategic point of view, Nigeria need to continue the process of doing business in a transparent manner. 
 
Speaking at the sideline of the just conclude 2016 Offshore West Africa Conference in Lagos, Ensor suggested that in addition to doing business in a transparent manner, developing fields in Nigeria need to control their cost in the face of falling oil price. 
 
He explained that companies need to control their cost of production in order to make profit to survive the current industry crisis. 
 
Ensor admitted that cost control for International oil companies in Nigeria is going to be a technical and strategic challenge.
 
‎”For developing fields, the watch word is cost control. companies need to bring down the price of oil at which they can obtain profit and survive. That is going to be a technical and strategic challenge for the industry,” Glenn Ensor said.
As Iran prepares to commence production and supply of crude oil into the international market couple with low demand from China, Ensor said oil price will remain low for a while
‎Commenting on America Shale gas, Ensor said it has proved to be remarkable resilient and flexible by bringing down their cost structures to stay in the market. 
 
He said the America Shale gas style to remain resilient and flexible ‎in the market started with Saudi Arabia 
 
“Saudi Arabia stated this process as way of forcing higher cost producers out of the market  and market share in a world where hydrocarbon demand is not rising especially with the Chinese situation ‎. 
 
“But what this will lead to is to force producers around the world  to look at ‎efficiencies and cost control to stay in the game. 
 
“With Iran coming on after the agreement recently signed, it is difficult to see any upward pressure on oil prices as things currently stands.  
 
“At the moment, ‎the fundamentals suggest that lower oil prices will stay for a while,” Ensor said.
In his words on the success of Offshore West Africa, OWA 2016, PennWell Managing Director said
“We are extremely pleased that Offshore West Africa 2016 has been so wonderfully received here in Lagos, and this has been a great way to celebrate 20 years of the event, with a record attendance once again. Continuing the successes of the 2015 event in somewhat turbulent times for the industry within Nigeria is something that we thank all participants, including delegates, visitors, sponsors, exhibitors, and speakers for, in helping us achieve this. 
 
“We are proud to have brought together over 2,700 industry and young professionals and we are delighted to be coming back here to the Eko Hotel & Suites in January 2017. We invite you all to join us for what we believe will be another great event for all concerned‎.”
 

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