Sunday, 21 February 2016

Oil Depression: How marginal field operators can survive- Stakeholders


By Oluwagbenga Bankole

In the midst of the current global oil depression, marginal field operators in the country have been charged to embrace more collaboration, prudence and operational efficiency.  

Speaking exclusively with TOTALNEWS247, the Managing Director of Energia Limited, a joint venture operator of the Ebendo and Obodeti marginal field, Mr. Felix Amieye-Ofori said that the way forward for marginal field operators in this present situation is for them to renegotiate all existing contracts with service providers and also discuss with banks for better payment terms on existing loans.” 

 Amieye-Ofori also said that marginal field operators need to pay closer attention to HSE and Community Relations as both or either of them can trigger unplanned expenditures.

He added that as marginal fields, government must also begin to look at some incentives for the operators if they are to stay afloat. 

Speaking on the effect oil depression on marginal filed operators, Amieye-Ofori said; “dealing with sub $30/bbl crude price is quiet challenging because their revenue has collapsed from $110/bbl to $28/bbl.”  
He also said that service cost hasn't changed that much, neither has ones bank loan changed, adding that the only way for them is to cut back on operation and they only carry out maintenance activities just to keep afloat.  

He however said that this is the time to have more volume to compensate for falling crude oil prices, saying that though they have stopped new drilling, but they are embarking on work over operations to bring in more crude.

Also speaking with our correspondent, the Managing Director of Platform Petroleum, Mr. Owieadolor Osariemen said that Government must begin to look at the fiscal terms with which most of the marginal field operators are operating, adding that the fiscal terms are no longer realistic.

 “The present situation requires collaboration from everybody. The government, the Banks, service providers etc. It requires all industry stakeholders’ collaboration,” he said.
              

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