The Group Managing Director of Nigeria National Petroleum Corporation (NNPC) Dr Ibe Kachikwu on Monday said the industry was facing a sharp lower revenues from the country’s oil assets.

Kachikwu said this at the 33rd Annual International Conference and Exhibition organised by Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.

The NNPC boss was represented by the Group General Manager, Nigerian Petroleum Investment Management Services (NAPIMS), Mr Dafe Sejebor.

Kachikwu said the nation should put up strategies to stay afloat in order to mitigate the impact of the fall in oil price in the industry and 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 optimise 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.

Credit: Vanguard