NNPC to cut production cost to $20 per barrel
By Michael Eboh
The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru, yesterday, disclosed that Nigeria’s crude oil and condensates production has risen to 2.32 million barrels per day, mbpd, marginally exceeding the 2019 budget benchmark figure of 2.3 million barrels.
Speaking in Abuja during the visit of national officials of the Nigerian Union of Journalists, NUJ, Baru said the country’s current crude oil output figure was a significant improvement from the average daily production of 2.1 million barrels recorded in 2018.
Baru also stated that the NNPC the country’s gas production has risen to about 1.5 billion standard cubic feet, scf, from about 450 million scf per day.
He further disclosed that officials of the Corporation are currently negotiating foreign direct investments for the Nigerian petroleum industry to the tune of $7 billion, a significant improvement from the $3.6 billion recorded in 2017.
He stated: “Since we came in July 2016, we had been focused on increasing production of oil and gas and condensates. At some point, our national combined production was about a million barrel; I am happy that as at the end of 2018, we have moved on, averaging last year, about 2.1 million barrels.
As I am speaking, this morning, I looked at our production figures, combined oil and condensates we are pushing 2.32 million barrels a day. This stability and ability to push production has come as a consequence of several factors, both internally, externally and also.
“Our drive for transparency has also produced a lot of fruits. We have been able to attract Foreign Direct Investments, FDI, into the oil and gas industry and in 2017 alone, we have attracted about $3.6 billion. In 2018, we have shot up by $3 billion; at the moment, some of our officers are in London, where they are negotiating sums in the region of $7 billion as FDI for the oil and gas sector.”
Baru further stated that the NNPC had been able to reduce the cost of crude oil production, dragging it down from $27 per barrel in its Joint Venture operations to $22 per barrel, adding that the corporation was looking at further reducing it to about $20 per barrel.