Page 16 - Nigeria one mag 4 edition en

Insecurity escalating cost of oil and gas production in

Nigeria

The Minister of State for Petroleum Resources, Chief Timipre Sylva has said that the provision for business
operation in the oil and gas Industry in Nigeria is responsible for escalating production costs.
The minister of state, made this point known while he was attending a 4th annual Value chain lecture organized
by Nigerian Maritime Administration and Safety Agency, NIMASA to address the issue of insecurity in Nigerian
waters ways.
With the issues of oil theft, pipeline vandalism, militancy in the Niger delta region, the provision of security for
human personnel and security for the energy infrastructure is significantly driving up production costs. As such,
revenues and income from the oil and gas sector is dwindling.
He said: “Security is one of the main cost drivers in the industry and that is what we have been discussing. And to
tackle the security issues that are bedeviling the maritime sector, it is important that they work hand in hand with
the oil and gas sector for it to impact the nation''s economy fully.
Furthermore, he stated that the passage of the Petroleum Industry bill, will improve activities in the industry as
some of the provisions in the bill are useful guidelines for addressing some of the security challenges in the oil
and gas industry.

Nigeria 16