NLNG’s earnings may dip by over 50% due to drop in oil prices

The Managing Director, Nigeria Liquefied Natural Gas Limited (NLNG), Babs Omotowa, has said that the firm’s earnings this year may drop by as much as $6 billion, over 50 per cent, compared to 2014 earnings due to the harsh realities in the global oil and gas industry, The Nation reports.To underscore the impact of the price crash, he said in 2011, when crude oil sold for as much as $140 per barrel, NLNG earned over $11 billion, but this year, considering low oil price and some local challenges confronting Nigeria’s oil and gas industry, anticipated earnings will be about $5 billion.On the impact of the renewed attacks on oil facilities by the Niger Delta militants, Omotowa said militancy affects the oil and gas industry in Nigeria and not just the NLNG. He said the development of the region would help in significantly reducing insurgency, urging stakeholders to collaborate to achieve that objective with the government leading the way.