The Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Dr Ibe Kachikwu on Monday said revenues from the country’s oil assets has fallen sharply.
Kachikwu said this at the 33rd Annual International Conference and Exhibition organised by Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.
Kachikwu, who was represented by the Group General Manager, Nigerian Petroleum Investment Management Services (NAPIMS), Mr Dafe Sejebor, said the nation should put up strategies to stay afloat in order to mitigate the impact of the fall in oil prices on the nation.
“We must renegotiate our contracts to reflect current market realities.
“If the cost/unit barrel remains exorbitant at current low prices, oil production becomes economically not viable; it will simply be left in the ground.
“Portfolios must be re-evaluated because now is the good time to optimize the company’s overall portfolio by restructuring capital allocation away from high-cost, lower-return projects,” he said.
The GMD listed survival strategies to include external financing, operational optimisation, review of fiscal terms, strategic merger and acquisition.
Others are re-engineering business models, reduction in operating expenditure cost, and financial resilience.