Expert tasks marginal field operators on transparency

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marginal fieldsMarginal Field operators have been advised to adopt transparency in their dealings so as to attract needed investments in their operations.

Partner, Transaction Advisory Services Ernst & Young, Mr. Jon Clark, gave the advice while speaking at the First Marginal Field forum organised by Energy Institute, United Kingdom Trade and Investment (UKTI) and Marginal Fields Operator Group.

Clark noted that challenges of financing bedeviling marginal field development in Nigeria can be tackled if operators adopt transparency and consistency in their dealings.

He said transparency and consistency would make the marginal field sector attractive to investors, adding that potential investors in any venture normally look out for a number of factors, such as quality of the assets, quality of management, legal protection and governance rights, access to cash flows and liquidity among others.

He said: “In telling their stories to investors, marginal field operators should know that transparency is a differentiator, consistency is valued, while surprises are unwelcome.

“Marginal field operators should know the investor they are talking to at any point in time, anticipate their key concerns and understand how these change over time”.

Also speaking, Partner, Akintola Williams Deloitte, Mr. Femi Abegunde, urged the operators to form a common front in addressing challenges confronting their businesses.

He reasoned that operators needed to act as one to have a collective industry position on issues bordering them, such as issues of the Petroleum Profit Tax, Petroleum Investment Act, royalty calculation and pioneer status for operators among others.

Abegunde also enjoined the operators to seek concurrence of the Minister of Finance and the Attorney General of the Federation in order to harmonise dissenting issues.

 

Information from This Day was used in this report.