LAGOS, Aug. 17 (Xinhua) -- The Nigerian government Thursday decried the high cost of oil production at 32 U.S. dollars per barrel, saying it was making frantic efforts to bring down the cost to 15 dollars per barrel.
Minister of Petroleum Resources, Ibe Kachikwu, who made the assertion in Lagos, the country's economic hub, said it makes cost of Foreign Direct Investment (FDI) very expensive.
The minister said the government was making frantic efforts to bring down the cost to 15 dollars per barrel in order to significantly bring down cost of FDI.
"Initial consultations have been held with stakeholders and cost drivers have been identified and the outcome of this initiative will be a win-win for investors and the nation," Kachikwu said.
He said the Petroleum Industry Governance Bill (PIGB) had been structured to fully turn around the petroleum sector and make it attractive to investors.
Kachikwu also said the security issues and funding gap in the area of refinery had delayed the take off of refinery projects, even after licences have been issued.
He regretted that after the Department of Petroleum Resources had issued about 40 licences, only two projects were currently being developed.
The minister expressed optimism that the PIGB would bring about flexible fiscal regime, promote gas utilization and enhance local content and as well restructure state-run company for enhanced productivity.
