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12 May 2008 15:50 GMT | more prices >>

Nigeria players ‘should boost social efforts’



By Upstream staff 

Photo by Reuters


Oilfield security in Nigera would improve if oil companies boosted their community development efforts, Emmanuel Egbogah, special petroleum adviser to Nigerian President Umaru Yar’Adua, said.

"They need to do more," Emmanuel Egbogah told reporters after a panel discussion at the Offshore Technology Conference of industry challenges around the world.

The interview followed an exchange between Egbogah and fellow panel member Patrick Pouyanne of French oil giant Total, who expressed concern about the level of security in Nigeria.

Egbogah said the Nigerian government was doing its part, Reuters reported.

Nigerian oil production has been plagued by attacks on pipelines and other infrastructure by militants who complain that local communities are not benefiting enough from oil.

When Pouyanne, Total's senior vice president of exploration and production, questioned Nigerian security, Egbogah jumped in to suggest companies spend more to improve nearby communities.

"Maybe your investment needs to be higher to solve the security problem. To say that this issue of security is completely the responsibility of the host government is not correct. I think everybody has a part to play," Egbogah said.

"Some of the problems that created some of the security issues have been as a result of the non-performance of the international oil companies," Egbogah told reporters.

Members of the panel agreed that one of the challenges faced by oil companies is fulfilling social responsibilities in underdeveloped oil-producing countries.

Egbogah said the government of Nigeria was working hard to keep the peace and has had some success.

"We believe we are making progress, despite the fact that from time to time you hear about something that is breaking news," Egbogah said.

Production has recovered substantially since the worst interruptions, he said.

With the lifting this week of a force majeure on production by ExxonMobil, Nigerian output has risen from less than 1.5 million barrels per day to 2 million or 2.2 million, he said.

"We'll not only hold that level, we'll improve upon that," he told reporters.


08 May 2008 04:57 GMT  | last updated: 08 May 2008 06:03 GMT

Community involvement: a Nigerian oil official has suggested an increase in social projects by oil producers in the country might reduce attacks on the industry
 

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