NNPC targets cutting oil production cost to $10 pb

The Nigerian National Petroleum Corporation (NNPC) has reiterated its desire to reduce its oil production cost to $10 per barrel.

The statement was attributed to the corporation’s Group Managing Director, Malam Mele Kyari, who was quoted by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, as saying during 20th Nigeria Oil and Gas Conference (NOG) themed: “Fortifying the Nigerian Oil & Gas Industry for Economic Stability & Growth,” which held virtually.

Kyari forecasts that the global demand in the oil and gas sector will stay low till the end of 2020. He stated further that, regardless of all the projections, oil will remain relevant for another three decades.

He said: “So, it doesn’t mean oil will vanish. What it means is that in terms of its significance, in terms of the volumes of contribution, it will reduce as the years go by.

“It is also true that many countries have made significant business decisions in the use of fossil fuel, including the United Kingdom, which has said that no car will run on fossil fuel in the next 10 years. This portends a huge change in the way we consume fuel and as we progress, many countries may follow suit.”

According to Kyari, the ensuing global oil challenge will have an impact on NNPC’s production, which means that the corporation must become more cost-efficient and be quick to reach the market.

“As a national oil company (NOC), looking forward to 2021 means we have to be more resilient and efficient in our operations. As a country, we have decided to bring down the cost of our oil production so as to remain competitive, be able to get to market earlier and remain in this game and ultimately, return value to our shareholders,” the GMD added.