The Vice President of Shell Upstream International, Markus Droll, said decline rates in crude oil production within Nigeria’s hydrocarbon industry are as high as 15 to 20 per cent.
Droll was speaking at the Nigeria Oil and Gas conference and exhibition this week in Abuja.
He also said replacing the decline rates “requires more funds than is currently available and that the peculiar high cost operational environment of Nigeria has further compounded the situation,” according to a report Sunday by This Day Live in Nigeria.
The Nigerian National Petroleum Corporation (NNPC) has blamed high costs of oil and gas projects that were packaged by international oil companies operating in the country for the shortfalls in funds in the industry.
Nigeria’s current crude production is about 1.9 million bpd.
The oil and gas sector accounts for about 35 per cent of Nigeria’s gross domestic product, and petroleum export revenues account for about 70 per cent of total exports revenue.
Shell’s Droll said oil and gas companies in Nigeria would have to look for innovative ways to inject additional capital.