BEVERLY HILLS – July 31,(THEWILL) – The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, on Monday disclosed that Nigeria may force international oil companies, IOCs, to lower their costs of production if negotiations fail.
He was however quick to point out that only oil companies that are able to drive down costs will thrive in the country.
The minister stated this at the opening ceremony of the Nigeria Annual International Conference and exhibition organised by the Society of Petroleum Engineers in Lagos.
He explained that countries like the United Arab Emirates had cut costs significantly, and have now become the lowest-cost producers in the world.
According to Kachikwu, “For me, you rather leave the oil in the ground than produce at a cost that doesn’t make sense.
“So, cost is going to be a very high driver. So that is certainly one area we are focusing on; we are working collaboratively with oil companies.
“But let’s make no mistake about it, if we cannot negotiate it down, we will compel it or we will stop the production; it does not make any sense.”
