PETAN Chairman, Ogunsanya expresses concern over high cost of production in Nigeria

The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya has expressed concern over the high cost of production in Nigeria.

Speaking during a courtesy visit to the Chief Executive Officer of Aradel Holdings PLC, Mr. Gbite Falade in Lagos recently, Ogunsanya said PETAN has the responsibility to bridge the gap of cost production and cost of sales through collaboration with the government, the regulators and producers like Aradel Holdings PLC.

Ogunsanya said the courtesy call was aimed at sharing thoughts on practices and trends in the industry and the way forward, as well as to formally seek the support of Aradel Holdings towards the 30th anniversary celebration of the Association, and deepening partnership with PETAN-member companies in service delivery.

He said: “Nigeria’s cost of production compared to many countries is too high and at PETAN, we feel that we have the responsibility to bridge the gap of production cost and cost of sales through collaboration with the government, the regulators and producers like you. In the next few years, nearly 70% of onshore assets will be owned by Nigerians, and PETAN has the strategy to maximize the footprints from these assets through a well-articulated partnership model that integrates funding strategies and cost-saving technologies and know-how.”

Engr. Ogunsanya added that PETAN would like to have a Memorandum of Understanding, MoU, with Aradel to pursue and realise the partnership, stressing the need for all stakeholders to work towards eliminating the impact of portfolio companies in the industry. He also informed that PETAN would be 30 within the year and solicited the support of Aradel to host the event.

Warmly receiving the delegation, Mr Falade, in the company of some members of the Board and Management of Aradel, including the independent non-executive Director of Aradel, Ms. Patricia Simon-Hart, expressed delight that PETAN remains a dependable partner in the oil and gas industry, noting that it was gratifying to hear the aspirations of PETAN, which aligns with the Federal Government’s vision, and by extension, other operating companies in the industry, including Aradel.

“With a good number of divestments that are about to be concluded; presenting opportunities in the industry and to be run by Nigerians for Nigerians, there is a greater need for synergy between the new operators, including Aradel and PETAN as technical oilfield services providers,” he said, assuring that Aradel is committed to deepening the existing working relationship with PETAN.