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Oil, gas trainers lost $2b to COVID-19 in 2020

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OIL and Gas Trainers Association of Nigeria (OGTAN), yesterday, raised the alarm that it lost about $2 billion in the last 12 months due to the pandemic.

 President of OGTAN, Mayowa Afe, stated this at a media briefing to announce activities lined up for its 2021 Annual General Meeting/Lecture series.

  Lamenting that as soon as the pandemic broke out, most oil and gas companies cancelled trainings for their workforce while those that didn’t, reduced their training budget, Afe said that for every oil and gas contract in the country, three per cent of the contract sum was to be set aside for training, saying the COVID-19 pandemic eroded all those gains.

  According to him, COVID-19 compelled most oil and gas firms to cancel contracts because the resources to execute contracts was just not available, a development he said impacted negatively on the fortunes of OGTAN members.

  “At a production capacity of 1.22 million barrels of oil per day at an average price of $75 per barrel, divided by 3 per cent of those that are supposed to be on training, which later dropped to almost negative, trainers posted an average of $2 billion per annum loss. Despite the fact that OGTAN members were out of job, they could not afford to shut down their operations and, as such, they have to keep running recurrent expenditure which included payment of salaries and wages, maintenance of office facilities, among others,” he said.

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