Chevron Boss says $20 billion investment would be required yearly for Nigeria to replace its current production levels.

Mr Ali Moshiri,, the President of Chevron Africa and Latin America Exploration and Production, has said that the total investment in Nigeria’s oil and gas industry, which stood at 20 billion dollars in 2014, has dropped by 20 per cent in 2015.
Moshiri disclosed this in Lagos at the 33rd annual conference of the Nigerian Association of Petroleum Explorationists (NAPE). Moshiri that said Nigeria accounted for 20 billion dollars out of the 600 billion dollars investment in the global oil and gas industry in 2014.
According to Moshiri, in Africa, Nigeria was the top producer of liquid hydrocarbon and number three in gas production.
He also said that the country’s position in gas was because of lack of gas infrastructure and not because of the level of its gas resources. “But when you talk about investment, total industry investment in 2014 was about 600 billion dollars and Nigeria had around $20 billion. After the price crash, there is tremendous reduction in global investment.
Moshiri further said Nigeria had tremendous capacity and resources to produce far above the current two million barrels of crude oil per day, but added that much investment would be required.
Moshiri said $20 billion investment would be required yearly for the country to replace its current production levels.
He aslo said the current slump in crude oil price was as a result of “ much inventory in the oil market’’. Moshiri said between 2014 and 2015, about four million barrels of crude oil per day were unconventionally introduced into the market which led to this development.

Author: nmmin

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