The Nigerian Minister of State for Petroleum Resources, Emmanuel Kachikwu has urged oil producing countries to take advantage of the decline in oil price to verify their cost profile in carrying out businesses.

“The industry will still be in challenge in one to two years and I hope that the lesson you take away will help you either as government policy makers or practitioners in the industry, to confront some of the issues. Amidst all these global chaos, reducing prices, lack of investments, loss of jobs, contracting of most of the servicing companies, postponement of major projects, there are some good safer linings. It is a good opportunity for countries to begin to look inwards, check their cost profile," he said.

Kachikwu noted that all through the period of 120 dollar a barrel, many countries and companies had thought that it might not end and the cost profile for doing business was up the limits. He added that the meeting to freeze output will affect the industry positively.

“Hopefully, it will help to bring up the price higher than what it is today. Again in the last two months, because of the work some of us have done; the prices are beginning to be firm. We cannot know the predictions now, but there are signs of hope," he told the Guardian.

He however, urge African countries to imitate countries in the Far East and the Gulf, particularly in the area of governance and savings.

Anita Fatunji