NNPC To Cut Crude Production Cost

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Mele Kyari, has said the corporation is working round the clock to ensure the cost of crude oil production in Nigeria is reduced.

Kyari, who spoke while speaking at the Central Bank of Nigeria round table discussion in Abuja on Wednesday said the reduction became necessary as there were currently no off-takers to purchase  50 cargoes of the country’s crude.

According to him, the cost of crude oil production in the country was within the price range of $15 to $17 per barrel, while that of Saudi Arabia was between $4 and $5 per barrel in order to remain in the competitive market.

He said in the face of the Coronavirus global pandemic, countries like “Saudi Arabia gave a discount of $8 and Iraq $5 to their off-takers in some locations, meaning that when crude oil sells at $30 per barrel, countries like Saudi Arabia is selling at $22 per barrel and Iraq selling their crude at $25 per barrel.”

However, to create a sustainable market for Nigeria’s crude and make the country a choice destination for Foreign Direct Investment, the country will need to provide some sort of discount to its buyers.

The GMD reiterated its plans to increase the countries daily production to 3 million barrels per day and shore up the crude oil reserves to 40 million barrels.