NPDC To Embark On Aggressive Cost-Effective Oil Production, Targets 500,000 Barrels Per Day

Over the next five years, the Nigerian Petroleum Development Company said it will be embarking on an aggressive but cost-effective strategy that will boost its oil production to about 500,000 barrels per day and 734mmscf/d gas.

This was disclosed by Mr Mansur Sambo, the Managing Director of NPDC, in a meeting with members House of Representatives Committee on Petroleum Resources (Upstream) during an oversight function in Benin, Edo State.

The Company also revealed that it has been recording production successes from its oil and gas assets.

Sambo disclosed that the NPDC has about 38 assets out of which 24 were producing.

He added that the Company is finalizing the Ogoni re-entry strategy plan in OML 11 and had commenced Gas SPV Shareholders Agreement and Gas Sale Agreement Negotiations.

Sambo told the committee that the NPDC, in OML 26 had completed the upgrade of Ogoni flow, noting that plans are underway to Commission Operations soon.

He said, “We have completed the Abura field heavy oil development studies, Abura 6ST to add incremental production of 1,500 barrel per day (bpd) in the fourth quarter of 2021.

“We have also successfully drilled and completed Oredo 18 and 19 and completed post-completion test for Oredo 18.

“Over the next five years, NPDC aspires to embark on an aggressive but cost-effective production strategy to reach 500,000 bpd and 734mmscf/d gas.”

He described the 2020 fiscal period as a very challenging year because of the Coronavirus pandemic, adding that despite these challenges, the NPDC is not only surviving but still standing very strong

“2020 till now has been very challenging due to the outbreak of Covid-19 pandemic, NPDC is not only surviving but still standing very strong

“We are probably the only oil company in Nigeria that recorded positive indices in 2020, other |OCs recorded negative indices.

“We just held our board meeting and our audited financial statements were presented to NPDC board,” he added.

He expressed optimism that with the Company standing strong amidst the challenges, it will continue to pay taxes to goverment while meeting it’s obligations to other stakeholders in the economy.

Sambo added, “What this means is that as the company survives, it will continue to meet its obligation by way of payment of taxes and royalty to the federation

“We were able to keep employments during the Covid-19 period without letting anyone go.”