Adewale Sanyaolu
The Nigerian National Petroleum Corporation (NNPC) says it has crashed the cost of crude oil production to $20 per barrel from $32, representing a 40 percent decrease
NNPC Group Managing Director, Dr. Maikanti Baru, disclosed this yesterday in Abuja during the NNPC Day at the ongoing Technology and Innovation Expo 2018 with the theme: Fast Tracking Sustainable Development of Nigeria Through Science and Technology.
Baru attributed the feat to the impact of science and technology and efficient work processes, saying the mileage would enable more revenue to the Federal Government even as it now targets producing a barrel of oil at $15
Represented by the Chief Operating Officer (COO), Gas and Power, Engr. Saidu Mohammed, the GMD noted that the NNPC had been innovative and efficient in its various operations to drive down the cost of production of crude oil and gas.
Recall that, the Minister of Petroleum Resources, Dr Ibe Kachikwu, had in August 2017, at the annual conference of the National Association of Energy Correspondents (NAEC) in Lagos, decried the high cost of oil production at $32 per barrel, saying it makes the cost of Foreign Direct Investment very expensive.
The minister assured that the Federal Government was making frantic efforts to reduce the cost to $15 per barrel in order to significantly cut the cost of FDI. “In Nigeria today, the situation is such that FDI flows into the country are at high cost.“An example is the high cost of production of oil at about $32 per barrel,’’ Kachikwu had lamented.