Nigeria, Algeria and other members of the Organisation of Petroleum Exporting Countries lost revenue of about $1tn as a result of the crash in crude oil prices.
Secretary-General of OPEC, Mohammed Barkindo made this disclosure at the headquarters of the Federal Ministry of Petroleum Resources during a visit to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, in Abuja on Monday.
Barkindo said that the ongoing crisis in the oil industry was the worst ever in recent history.
He added that the sector world wide lost about $1tn during the period of the oil price fall.
“In terms of the gravity of this cycle, crude oil prices have crashed by over 80 per cent from the fall of 2014 through January 2016. How you survived as a government and institutions under this industry remains a miracle. I’ve been to other countries and I saw how they are struggling, but you have weathered the storm,” he said.
He further explained that the shut-in of about 1.8 million barrels of crude oil per day within a period of six months by the 13 OPEC and 11 non-OPEC members paid off considering the rise in crude oil prices.
He said, “This industry globally has lost nearly $1tn in terms of differed projects and outright cancellation of projects across the supply chain: upstream, midstream and downstream. And this is the greatest threat that is facing future security of supply. We need consistent investments to maintain current production as well as grow the reserves.
“In terms of national revenues, since all our countries are dependent on this commodity, within OPEC alone, we have lost cumulatively about $1tn. Therefore, we, together with our OPEC friends, are determined to solidify this platform to maintain a stable environment and restore confidence for investors.
“All our competitors within OPEC are also focused on the issue of diversification. I’m just coming from Saudi Arabia, the largest producer depending solely on oil and gas, they’ve come out with a programme to diversify their economy within the context of the vision 2030,” he added.
Barkindo hailed the Nigerian government for stepping aside the joint venture cash call agreement it had with international oil companies.
“By ending it, you are clearing an over-hang of debt that is too high, yet maintaining the level of production and also focusing on an incremental growth that will continue to sustain not only the industry, but the domestic economy,” he said.
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