Shell has warned that fiscal stability is crucial to survive the current low oil price climate, else investments could dry up fast with production levels declining shortly afterwards.
Vice President, Nigeria and Gabon Shell Up-stream, Markus Droll, made this assertion in his presentation on at the on-going Nigeria Oil and Gas (NOG) conference in Abuja, adding that what is required to grow the sector is fiscal stability and predictability.
Droll, however gave assurance that the company was hopeful about the economy of the country, as long term trends showed that it would continue to grow and diversify.
In his words: “The current $50 per barrel oil price is obvious evidence that the economic environment around us is volatile. With plummeting oil prices and rising industry costs, we need to review the fiscal environment in order to maintain an attractive investment climate for all the stakeholders in the industry.”