Nigerian Oil Producers Making $5 Loss Per Barrel – Stakeholders

The Chairman, Petroleum Technology Association of Nigeria (PETAN), Mr. Emeka Ene has disclosed that Nigerian oil firms may be producing at up to $5/barrel loss, as average production costs for independent and marginal field producers is between $30 and $35/barrel and also with pipeline vandalism activities on the rise, costs may shoot up by another $10/barrel.

Oil prices, yesterday, resumed their free fall, with Brent crude, similar to Nigeria’s sweet crude grade, falling 2.6 per cent to $31.34 a barrel following a 10 per cent rise on Friday, while U.S. oil shed 95 cents to $31.24.

However, industry executives have insisted that the Federal Government needs to talk with Nigerian producers and come up with possible solutions, if it must save indigenous companies from running aground and plunging the economy into deeper crisis than it is in already.