The cost of offshore operations in the global energy industry may reduce as oil majors are pushing for more investments and carbon emission reduction.
Speaking at the Offshore Technology Conference (OTC) in the US, Rafik Beydoun said offshore operations will remain relevant as long as they are competitive in terms of technical cost for exploring and producing hydrocarbon resources in a climate-friendly way.
The OTC chairman on Monday said focus will be placed on marine renewables in various technical sessions of the conference.
Roger Jenkins, president and chief executive officer of US-based Murphy Oil Corporation, said despite the recent emphasis on renewables and shale revolution, offshore investments are viable because the current cost structure is low.
He said the sector will grow further due to efficiency from improved technology.
“There’s a lack of competition among companies our size in this business but I think the efficiency is coming for us in this business,” he said.
“Efficiency is not an onshore thing, it’s an offshore thing as well and it’s just getting started.”
Arnauld Breuillac, president, exploration and production at Total, said climate change is a major thrust of the company’s current and future operations.
He said while Total is pursuing projects with lower cost margins, the company is also working to reduce its carbon footprint from production down to supply.
In a keynote address, Bank Anthony Okoroafor, chairman of the Petroleum Technology Association of Nigeria (PETAN), said Nigeria’s participation at the OTC has always been beneficial to the nation’s oil and gas industry.
“Nigeria’s participation at the OTC over the years has… provided huge opportunities for Nigerian producing companies, service companies and government agencies to grow capacity and enhance industry activities,” he said.
“Nigerian companies have formed partnerships that have resulted in foreign direct investment (FDI) in the oil and gas sector and the larger economy.”