Nigeria earns $ 400 bn in oil revenue

Nov 16, 2006 01:00 AM

Nigeria earned $ 400 bn as economic rent from the 27 bn barrels of oil produced in the last 50 years [1956-2006], Austin Avuru, President of the Nigerian Association of Petroleum Explorationists [NAPR] has said.
Avuru disclosed in Abuja in his opening address at the 24th International conference and exhibition of the Association. He said within the period, out of the 183 tcf of gas discovered in the country, 13 tcf was produced. Some 83 % of this he said has been flared.

He however berated the country for not doing well to manage the oil wealth in the last 50 years even as only 2 % of adult population take charge of the nation's 95 % export earnings.
"We have laboured to share rather than create, and even in sharing we have been found wanting. The parlous state of our economy today only summarizes the fact that we have, so far squandered our riches". He therefore advocated that wealth realised from this national asset should be efficiently managed so as to leave impressive legacy for generation of Nigerians.

He also cited the case of Norwegian Parliament that set up the National Petroleum Fund to manage its earnings on oil and gas. The current value of the fund according to him is over $ 200 bn. Although Avuru said the country still has the potential to discover additional 40 bn barrels of oil and 120 tcf of gas, he said there is need to align production projections with thoughts on conservation and connectivity of the oil and gas asset.
"Our current oil reserve estimates stand at about 35 bn barrels. Average annual reserves addition in the last ten years is about 800 mm barrels while average annual withdrawal rate over the same period is about 840 mm barrels. This would seem to suggest that we are ready at, or very close to the zero flat line in net reserves addition. The situation, of course gets worse as we strive to attain a target daily production rate of 4 mm barrels."

Minister of state for Petroleum Resources represented by Alhaji Jafaru Paki, who also spoke at the event tasked NAPE to use its ongoing conference to delve into the reason why the country has not been able to train its manpower to the highest level of proficiency 50 years after oil discovery.
According to him' It is not enough any more to continually externalise our manpower training. We must be part of the global environment, able to innovate in order to actualise the local content drive of the Federal Government".

Source: Daily Trust
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