Oil price above $80 detrimental to investments – Seplat boss

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The Managing Director and Chief Executive Officer of Seplat Petroleum Development Company Plc, Mr. Austin Avuru has stressed the need for crude oil prices to stabilise around $60 per barrel threshold, saying that $80 oil and above could be detrimental to investments, THISDAY reports.

In his remarks while delivering the keynote speech at the just concluded West African International Petroleum Exhibition and Conference (WAIPEC) hosted in Lagos, the Seplat boss said when oil is too low like when it was $26 per barrel, a lot of projects are deferred but also when crude oil approaches $80, $90 and $100, it also encourages operators to embark on massive investments in unconventional sources of oil, which creates a glut in the oil market and crashes the price.

Avuru has also called on African players in the oil and gas sector to focus on domestic energy security as the multinational companies are moving investment funds from oil and gas into the renewable energy sources. He argued that even though the oil majors are shifting to renewable energy, oil and gas will continue to remain relevant to Africa, pointing out that it will take another 20 years for these new frontiers being developed by the majors to be available for Africa’s consumption after they are fully developed.