Oil production from deep-water acreages, carried out through the production sharing contract (PSC), accounts for 41% of Nigeria’s total oil production, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has said.

Speaking at a forum in Lagos, he commended the success of deepwater fields operation. He said the PSC production growth rate and contribution is 41% of national production with phenomenal growth rate of over 2000% within 10 years.

He added that lack of injection of required investment in Joint Venture (JV) operations and small independents is responsible for the development. If the JVs and others get the required investments, production will shoot up substantially.

He explained that that is the reason the Federal Government is backing alternative funding for oil production and why small indigenous exploration and production firms should adopt the same option.

Source: The Nation