The Federal Government has stated since operation cost takes 46 per cent of its income from crude oil, it may necessitate job losses or zero profit unless there is understanding with workers.
By John Ofikhenua and Frank Ikpefan, Abuja
President Muhammadu Buhari, whom the Minister of State for Petroleum Resources, Chief Timipre Sylva represented at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) 6th Triennial National Delegates’ Conference 2020 in Abuja consented to this position.
The theme of the conference was “The future of work post and energy transition.”
He said “everything that needed to be said has been said by the GMD.”
The Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Malam Mele Kyari had told the oil workers in the conference that since there is need to cut down production, it means the industry has to reduce its activities, which is tantamount to downsizing the workforce.
The NNPC boss, who took the conference on a journey to of how far the oil market has nosedived, said since oil production costs $35 and now sells for $45 per barrel, it means the industry actually earns $10 per barrel.
In the melee, he said it is still certain that Nigeria cannot raise production to avoid price crash so to reduce its activities has become a necessary evil that would require a fewer hands to handle.
Buhari said the COVID-19 pandemic and progressive decline in crude oil prices in 2020 has made it imperative for Nigeria to aggressively pursue the development of non-oil economy and diversification of revenue sources as it braces up for a possible lower-for-longer crude oil price era.
According to him, the government is factoring the current reality into its reforms agenda.
He revealed: “We are developing strategic survival measures to ensure economic sustainability and job security.”
He insisted that crude oil will remain prominent in global energy mix in the medium to long term, which means that massive opportunities are still available for members of the association.