Chairman, Green Energy International Ltd., Prof. Anthony Adegbulugbe, has said marginal oil field producers in Africa must leverage unique opportunities in the oil and gas business to survive.
Adegbulugbe, who spoke at the African Marginal & Independent Oil and Gas Producers Conference, in London, argued that marginal oil producers holds significant promise for the robust participation of skilled African human resource in the sector.
He adding that more incentives are needed from government to encourage sustainability of marginal fields, and was quoted: “sustainability of Africa’s one asset marginal field producers may depend on leveraging on their unique opportunities and eventual transformation into integrated energy companies.”
He said uncertainties in the crude oil business environment have imposed serious sustainability challenges on small oil producers, adding that this could only be addressed through integrated energy development approach.
Speaking on “Financial sustainability and Efficiency of Marginal field operations,” he identified sustainable development strategies to include: increasing base production, reduction in operational cost per barrel, diversification of revenue base, and linkage of upstream and downstream opportunities and the broader economy.
Using his firm as a case study, Adegbulugbe said its strategy of linking Otakikpo’s upstream activities to the larger economy tremendously de-risked the marginal field