Nigeria fell short of oil revenue target due to COVID-19 – NNPC

The Nigeria National Petroleum Corporation (NNPC) has revealed that Nigeria’s oil revenue target declined by N1.06 trillion due to the coronavirus pandemic.

NNPC’s Group Managing Director, Malam Mele Kyari, made the disclosure during a Nigerian Stock Exchange (NSE) oil and gas webinar with the theme: “Perspectives of Operations and Industry Experts Post- COVID-19”.

Kyari said the country’s N2.64 trillion oil revenue target declined by 40 per cent as a result of twin shocks of COVID-19 and low crude oil price.

He added that the pandemic created an unprecedented and global crisis that would cause regions, countries, sectors, companies and individuals to experience reaction, resilience, recovery and adjustment for a new reality.

“The energy industry is likely to continue to struggle in the wake of a precipitous drop in oil and gas prices due to dampened demand from the effects of COVID-19,’’ he said.

According to him, revenue and production declines will continue to present major challenges for oil and gas companies, especially those at risk of being unable to refinance debt.

Speaking on emerging opportunities in the industry, Kyari said that the passage of the Petroleum Industry Bill would remove uncertainties and create investments opportunities in the oil and gas sector.

He disclosed that 40 billion barrels and three million barrels per day production target were potential investment opportunities for in-country storage capacity for crude oil.

Kyari urged industry players to exploit the country’s abundant gas reserves for in-country consumption.

He added that private firms should support major partners in the establishment of Integrated Power Plants along the Abuja Kaduna Kano (AKK) Gas Pipeline project.