Experts at the ongoing Nigerian Oil and Gas conference and exhibition in Abuja have advised oil companies to ensure judicious use of alternate money applied in financing projects in the sector.
They gave the advice on Wednesday at the panel discussion on the topic: “Maintaining Nigeria’s position as the oil and gas investment destination of choice.
Mr Patrick Olinma, Executive Director Total Nigeria Plc, said that companies which opted for alternative financing for implementing projects must respect all aspect of the contract.
According to him, whatever project funded through alternative finance must be clearly dictated.
“Alternative financing is not a bad idea but the truth is that there must be respect for contracts you are doing with such money.
“Most important thing is that the projects must not be complicated,” he said.
Mr Bello Rabiu, Chief Operating Officer Upstream, Nigerian National Petroleum Corporation (NNPC), said that alternative financing emerged due to poor funding in the industry.
“It is a temporary measure to get work done but the most important thing is a holistic approach before accessing the fund.
“Also, Mr Paul Garth, Chairman and Managing Director, Mobil producing Nigeria, said government and companies should be careful while going for alternative sources to finance projects.
“You must recognise when to use such funds, be careful while using it, if not you may be mortgaging the future of the company.
“You must go in with clear mind of what you want to do with such funds,” he added.
The topic for the 2019 Nigerian oil and gas conference and exhibition is “Promoting investment and collaboration in the oil and gas sector.”