News Update

Jul 05
NNPC Announces Top-Management Level Appointments, Redeployments
The Nigerian National Petroleum Corporation (NNPC) has announced new appointments and redeployments in the National Oil Company, as part of ongoing efforts to strengthen and reposition NNPC for greater efficiency, transparency and profitability in line with the Next Level Agenda of President Muhammadu Buhari’s administration. 

Mr. Adokiye Tombomieye, the Group General Manager, Crude Oil Marketing Division (COMD), has been appointed the new Chief Operating Officer (COO), Upstream while Mr. Mohammed Abdulkabir Ahmed, the Managing Director of the Nigerian Gas Marketing Company (NGMC), has been appointed the new Chief Operating Officer, Corporate Services, following the retirement of  Engr. Farouk Garba Sa’id,  last week.

A release by the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated that the change witnessed the redeployment of Engr. Adeyemi Adetunji, the Chief Operating Officer, Upstream, to the Ventures & Business Development Directorate as COO, a position left by Mr. Roland Onoriode Ewubare, who voluntary retired last week.

The top-level staff movement also affected Sir. Billy Okoye who has been redeployed from the NNPC Downstream Company, NNPC Retail Limited, as Managing Director, to replace Mr. Tombomieye as the Group General Manager, Crude Oil Marketing Division; while Mrs. Elizabeth Aliyuda, the General Manager, Sales and Marketing NNPC Retail Limited, takes over from Sir Okoye as Managing Director. 

Similarly, Mr. Usman Farouk, Executive Director Asset Management and Technical Services at the NGMC takes over from Mr. Ahmed as Managing Director.

The release also explained that President Buhari has accepted the resignation of Mr. Roland Ewubare, who was the immediate past Chief Operating Officer, Ventures and New Business Directorate of the National Oil Company while the retirement of the immediate past Chief Operating Officer, Corporate Services, Engr. Farouk Garba Said had also received the approval of Mr. President who thanked the two former COOs for their meritorious service to the corporation.

Speaking on the development, Group Managing Director of the Corporation, Mallam Mele Kyari, said the new appointments would enable the corporation live up to the expectation of her shareholders, Nigerians, and give impetus to the ongoing restructuring within the Corporation, which, he said, was in line with the corporate vision of Transparency, Accountability & Performance Excellence (TAPE).


Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation (NNPC)
Abuja.
5th July, 2020



Jul 03
NNPC Allays Fears of Possible Fire on Dripping Lagos Pipeline
… Says Leaking Line Contains Water, Not Petrol

The Nigerian National Petroleum Corporation (NNPC) has called on members of the public to discountenance reports of a possible fire outbreak from a vandalized point on its pipeline at Aboru Canal in Alimosho Local Government Area of Lagos State, saying that the there is no such hazard as the line in question has since been shut down for repairs and presently contains only water. 

The Corporation, in a release by its Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, explained that the Atlas Cove – Mosimi stretch of the System 2B Pipeline was shut down on June 25, 2020, to enable comprehensive maintenance of some segments of the pipeline.  

The NNPC said the repair work was on the last stage of completion which involves hydro-testing – a process of pumping of water through the entire pipeline for integrity test and leak detection - to ascertain availability of the pipeline for pumping products.  

The corporation noted that following a report from the dedicated patrol team about a leakage at a point in the Aboru Canal this morning, water pumping was suspended immediately at 09:27hrs to enable the maintenance team effect necessary repairs. 

The NNPC urged residents of the affected community to remain calm as there is no possibility of a fire erupting from the leakage point. 

Dr. Kennie Obateru 
Group General Manager 
Group Public Affairs Division 
Nigerian National Petroleum Corporation 
NNPC Towers, Abuja. 

2nd July, 2020.



Jun 30
Buhari Says Delivery of AKK Project is Part of Next Level Agenda
… Commends Corporation, Stakeholders for Embarking on Project Despite COVID-19 Pandemic

President Muhammadu Buhari has said that delivery of the 614km Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project is part of his Administration’s Next Level Agenda for sustainable development and economic prosperity of Nigeria. 

The President, who stated this Tuesday while flagging off construction works on the AKK project via virtual link from the State House in Abuja to two locations in Ajaokuta in Kogi State and Rigachukun, Kaduna State, said when completed the project would provide gas for generation of power and feedstock for gas-based industries, and also facilitate the revival of moribund industries and the development of new ones along transit towns in Kogi State, Abuja (FCT), Niger State, Kaduna State and Kano State. 

He noted that harnessing and commercializing the nation’s vast gas reserves was an enabler for rapid economic development and diversification of the economy, saying that this remained as a cardinal objective of his administration’s drive towards ensuring a stable, sustainable and more prosperous future for the citizenry.

“Today marks an important chapter in the history of our great nation. It marks the day when our domestic natural gas pipeline networks from Obiafu in Rivers State, Escravos in Delta State and Lekki in Lagos State, are being connected through Kaduna to Kano states thereby further enhancing national energy security”, he said. 

He stated that the project will create numerous direct and indirect employment opportunities while fostering the development and utilization of local skills and manpower, technology transfer and promotion of local manufacturing.
 
“We promised the nation that we will expand the key critical gas infrastructure in the Country to promote the use of gas in the domestic market. These include the Escravos to Lagos Pipeline System - 2 (ELPS-2), Obiafu – Obrikom - Oben (OB3) pipeline and the AKK. I therefore directed NNPC to ensure that these critical projects are completed on time, within budget and specification”, he said.  

He commended the NNPC and other stakeholders for bracing the odds of the prevailing COVID-19 pandemic to kick-start the construction phase of the project. 

President Buhari remarked that the lessons learnt from the Novel Corona Virus (COVID-19) pandemic further underscored the drive of his Administration for export substitution initiatives and projects that will promote local manufacturing.

He thanked the Government of the Peoples Republic China, the Bank of China and SINOSURE, the two Engineering Procurement Construction (EPC) Contractors - Brentex/China Petroleum Pipeline Bureau-CPP Consortium and Oilserve/China First Highway Engineering ``Company-CFHEC Consortium - for their support and commitment to deliver the project. 

The President called on the Governors of Kogi, Niger, Kaduna and Kano States, as well as the Minister of the Federal Capital Territory, to provide the enabling environment and support for the project.

Earlier in his welcome address, the Group Managing Director of the NNPC, Mallam Mele Kyari, remarked that the event would not have been possible without the full and unflinching support of His Excellency, Mr. President Muhammadu Buhari, who has made it a priority to ensure that revenues from oil and gas resources are utilized to support the emergence and growth of other non-oil sectors of the economy.

He said NNPC was transitioning towards becoming an Integrated Energy Company to support His Excellency, Mr. President’s economic diversification efforts. One of such efforts is the expansion of the corporation’s domestic gas footprint with the delivery of the Trans-Nigeria Pipeline Project which includes the Escravos to Lagos Pipeline System (ELPS) 2, the Obiafu-Obrikom-Oben (OB3) gas pipeline and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline. 

He explained that the EPC contract for the 614km AKK gas pipeline project was awarded at a total contract sum of US$2.592 billion to Messrs. Oilserv Plc/China First Highway Engineering Company (Oilserv/CFHEC Consortium) for the first segment covering 303km and Messrs. Brentex Petroleum Services/China Petroleum Pipeline Bureau (Brentex/CPP Consortium) for the second segment covering 311km under a debt-equity financing model with loan from Bank of China and SINOSURE, to be repaid through the pipeline transmission tariff and supported by a sovereign guarantee.

The NNPC GMD informed that all the required conditions precedent for closing the debt financing have been provided and the process of obtaining internal approvals by the Lenders is in progress to enable financing close by August 2020.

He disclosed that as part of the agreement, NNPC is utilizing the equity contribution to commence execution of the project to recover lost time and put the project back on track.  

Kyari expressed confidence in the ability of the EPC contractors to deliver the project on time, within budget and to specifications, noting that upon completion, the project would enable the injection of 2.2bscf/d of gas into the domestic market and facilitate additional power generation capacity of 3,600MW.

In his remarks, Governor of Kogi State, Alhaji Yahaya Bello, who expressed gratitude to God for witnessing the flag-off of the construction phase of the AKK project, said his administration has sponsored many youths in the state to acquire skills in welding and urged the contractors to gainfully engage them. 

On his part, Governor of Kaduna State, Mallam Nasir el-Rufai, thanked the NNPC, Ministry of Petroleum Resources, and other stakeholders for ensuring the flag-off of the project, stressing that there was high hope because of the enormous benefits the project would bring to the state.
 
Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation (NNPC)
Abuja.

30th June, 2020.

Jun 29
PMB Flags-off Construction of 614km Ajaokuta-Kaduna-Kano Gas Pipeline Tuesday
The Federal Government’s aspiration to boost domestic utilisation of gas in Nigeria will receive a boost tomorrow as President Muhammadu Buhari performs the Flag-off of the construction of the 40-inch x 614km Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project.

The project, expected to be completed within a 24-month timeline, is a section of the Trans-Nigeria Gas Pipeline (TNGP) with capacity to transport about 2.2billion cubic feet of gas per day.

A release by Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of the Nigerian National Petroleum Corporation (NNPC), explained that the Presidential Flag-off would be performed virtually from the Aso Rock Villa in Abuja with simultaneous link to two locations: Rigachukun, Kaduna State and Ajaokuta Steel Complex, in Kogi State.

The release stated that the economic benefits of the AKK pipeline which would originate from Ajaokuta, in Kogi State and traverse Abuja (FCT), Niger, Kaduna and terminate at Kano, would boost domestic utilization of natural gas for Nigeria’s social economic development, when completed.  

It would also unlock 2.2billion cubic feet of gas to the domestic market, support the addition of 3,600mega watts of power to the national grid and revitalize textile industries which alone boasts of over 3million jobs in parts of the country. 

The release added that the AKK project would support the development of Petrochemicals, fertilizer, methanol and other gas-based industries thereby generating employment opportunities and facilitating Balanced Economic Growth.

The NNPC explained that the Right of Way for the proposed AKK gas pipeline would run parallel to the existing Nigerian Pipelines and Storage Company’s 16 inch-crude oil and 12 inch- product pipelines wherever possible.

The corporation said the pipeline would be fed from the existing domestic Infrastructure with a capacity of over 1.5billion cubic feet per day and is being expanded by Escravos-Lagos Pipeline System II (ELPS II) and Obiafu-Obrikom-Oben (OB3) gas pipeline (under construction) that will double the capacity to over 3billion cubic gas per day.  

Conceptualized as an integral part of the Nigerian Gas Master Plan (NGMC), a gas infrastructure blueprint, which was approved by the Federal Executive Council in 2008, the AKK has received serious attention of the Buhari Administration leading to the award of the Engineering Procurement and Construction Contract (EPC) of the project by the Federal Executive Council in 2017. 

Within the last 12 months the project received extra fillip from the current NNPC leadership led by Mallam Mele Kyari, which deftly removed the impediments that have stalled the project over the years leading to the flag-off ceremony tomorrow. 

The AKK is ultimately designed to complement other major domestic gas transmission systems namely: the Western System, that is, the existing 36-inch Escravos-Lagos Pipeline I and II with 2.2billion cubic feet per day capacity and the On-going East-West connection via the OB3 pipeline featuring 2.4billion cubic feet per day capacity. 


Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation (NNPC)
Abuja.

29th June, 2020.

Jun 25
NNPC Produces 218.37billion Cubic Feet (BCF) of Natural Gas in March

… Records 47 Per cent Decrease in Pipeline Vandalism


The Nigerian National Petroleum Corporation (NNPC) has said that 218.37billion Cubic Feet (BCF) of natural gas was produced in March 2020, translating to an average daily production of 7493.65Million Standard Cubic Feet per Day (mmscfd). 

This was contained in NNPC Monthly Financial and Operations Report for March, 2020, a release by the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated.

The release said 3,119.89BCF of gas was produced for the period March 2019 to March 2020, representing an average daily production of 7,912.05mmscfd during the period. 

It explained that period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.37 per cent, 21.67 per cent and 8.95 per cent, respectively, to the total national gas production. 
 
Out of the 218.37BCF of gas supplied in March 2020, according to the report, 120.73BCF of gas was commercialized, consisting of 33.45BCF and 87.28BCF for the domestic and export market respectively, translating to 1,235.56mmscfd of gas to the domestic market and 3,817.40mmscfd of gas supplied to the export market for the month. 

The report said 55.63% of the average daily gas produced was commercialized, while the balance of 44.37% was re-injected, used as Upstream fuel gas or flared. 

Gas flare rate was 9.08 per cent for the month under review i.e. 679.54mmscfd, compared with average gas flare rate of 8.43 per cent i.e. 666.90mmscfd for March 2019 to March 2020.

During the month under review, the report also announced a trading deficit of ₦9.53billion for March 2020 compared to the ₦3.95billion surplus posted in February 2020.

The report declared that the over 300 per cent decline in March 2020 earnings was due primarily to the huge decrease of 181 per cent in the National Oil Company’s Upstream Subsidiary, Nigerian Petroleum Development Company’s (NPDC) due to the decline in crude oil prices precipitated by  the Coronavirus-induced global slowdown which it stated led to reduced exports and dwindling world oil consumption; combined with deficits posted by the refineries, among others. 

The NNPC MFOR indicated a total crude oil & gas export sale of $256.19million in March 2020 which decreased by 30.89 per cent, compared to last month’s. Of the total sales, crude oil export sales contributed $184.59million (72.05 per cent) of the dollar transactions compared with $281.14million contribution in the previous month; while the export gas sales amounted to $71.60million in the month. 

The March 2019 to March 2020 crude oil and gas transactions indicated that crude oil & gas worth $4.95billion was exported.
In the Downstream, to ensure continuous availability of Premium Motor Spirit (PMS) otherwise called petrol, and effective distribution of the product across the country, 1.73billion litres of PMS, translating to 59.72mn liters/day were supplied for the month. 

The corporation stated that it had continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the Nation. 

Within the period under review, 19 pipeline points were vandalized representing about 47 per cent decrease from the 32 points recorded in February 2020. Atlas Cove-Mosimi accounted for 53 per cent, while Mosimi-Ibadan recorded 21 per cent and Suleja-Minna accounted for the remaining 26 per cent.  

The report assured that NNPC, in collaboration with the local communities and other stakeholders, continuously strived to reduce the menace to the barest level. 

The March 2020 MFO report of the NNPC is the 56th edition in the series that began in 2016. 

The corporation carried its adherence to transparency and accountability a notch higher last week, 19th March, 2020 when it published its 2018 Audited Financial Report, a move that has received accolades from transparency watchdogs locally and internationally, in addition to endorsement by many Nigerians who encouraged other government agencies to follow suit. 


Dr. Kennie Obateru 
Group General Manager 
Group Public Affairs Division 
Nigerian National Petroleum Corporation 
NNPC Towers
Abuja 

24th June, 2020 


Jun 17
NEITI LAUDS NNPC FOR PUBLISHING AUDITED ACCOUNTS
Abuja, 16 June 2020- The Nigeria Extractive Industries Transparency Initiative (NEITI) has described as laudable, the decision of the Nigeria National Petroleum Corporation (NNPC) to make public its audited accounts for the first time in its history with the publication of its 2018 Audited Financial Statement (AFS) on its website.

NEITI acknowledges that this historic development fulfils a pledge made by the GMD of NNPC, Mr. Mele Kyari, to the management of NEITI at a meeting on 6th August 2019, a pledge which Mr. Kyari reiterated on 25th November 2019 during the official visit to Nigeria of Mr. Mark Robinson, the Executive Director of the global EITI. 

During the August 2019 advocacy meeting, the NEITI management had urged the then new GMD of NNPC to consider demonstrating his espoused commitment to transparency by making public the corporation's audited accounts. Mr. Kyari acceded to the request on the spot. 

"We welcome the eventual fulfilment of this important pledge and obligation," said Waziri Adio, the Executive Secretary of NEITI. "Given NNPC's antecedents and its prominent role in the sector and in the country, the publication of its audited accounts is positive, signaling more openness for the oil and gas sector and for Nigeria." 

"When combined with the monthly reports that NNPC started publishing in 2016, this development marks a sea-change for a national oil company that used to be renowned for opacity," Mr. Adio added. "We urge NNPC to make this a routine practice and to mainstream transparency into all facets of its operations."

NEITI calls on NNPC to go further by publishing its previous audited accounts and in open data formats so that the reports can be more accessible to citizens who are the shareholders of the corporation. NEITI also urges NNPC to strengthen and sustain its commitment to data mainstreaming and systemic disclosure.

NEITI is working closely with the NNPC in this direction through a joint committee on remediation and mainstreaming. The committee, set up by the two organisations, was tasked with the responsibilities of examining the status of legacy and other lingering issues about NNPC in NEITI's reports over the years and to recommend workable strategies for resolving the issues.

The committee was also charged to devise action plans on systematic disclosure of information on NNPC’s operations in an open and accessible format, as well as data mainstreaming, among others. The work of the NEITI-NNPC joint committee on addressing the remedial issues is already at an advanced stage and the report will be made public very soon. 

As part of its Strategic Plan and in line with the EITI Standard, NEITI has of late embraced proactive and constructive engagements with entities covered under the its reports with a view to reducing audit issues, deepening commitment to transparency, and encouraging proactive disclosures. 

"We do not want to be the only entity talking about and practising transparency," Adio stated. "There is little use being an island of transparency. Our goal is for all our stakeholders to believe in and model transparency. And to demonstrate our commitment to this new way of working, we are engaging with all covered entities bilaterally and collectively on outstanding issues and how we can further push the boundaries of openness."

Dr. Orji Ogbonnaya Orji
Director, Communications and Advocacy
NEITI



Jun 11
Petroleum Industry Intervention on COVID-19 Earmarks 53% of Funding to Construction of Medical Infrastructure
… Commences Building of Facilities in Three States

Of the N21billion ($58million) pledged in kind as medical intervention by the Nigeria Oil and Gas Industry to combat COVID-19 and improve on healthcare delivery in the Country, 53 per cent of the sum pledged has been earmarked for the construction of medical infrastructure across the six geopolitical zones in the country.
Ground-breaking ceremonies for the construction of 200-bed Infectious Diseases Hospitals with in-situ laboratory had already been held in Bayelsa, Borno and Katsina States with that of the other locations to follow suit. 
A recent report of the group’s delivery schedule indicated that other medical consumables and logistic support have been delivered to 20 states and the Federal Capital Territory (FCT), while end of June 2020 is set for states yet to receive.  
The Group Managing Director of the Nigerian National Petroleum Corporation, Mallam Mele Kyari, who leads the intervention group, said 14 medical centres in total and two Intensive Care Unit (ICU) expansion and upgrade would be delivered across the federation as part of the intervention initiative.
The group’s Governance Committee comprising Managing Directors of oil companies and other Industry players, headed by the NNPC GMD, has also allocated 26 per cent of the intervention funding to the deployment of logistics and in-patient support systems and 21 per cent of the sum to provision of medical consumables across the Country. 
All the initiatives by the respective stakeholders form part of their usual Corporate Social Responsibility (CSR) programme/commitments.
The report said medical consumables comprising respirators, protective suites and test kids as well as logistics and in-patient support systems among which are ambulances, ventilators and beddings and laboratory equipment have been delivered to 21 states and the Federal Capital Territory. 
States that have received medical consumables as well as logistics and in-patient support systems are: Adamawa, Akwa Ibom, Borno, Delta, Ekiti, Enugu, Imo, Jigawa, Kwara, kaduna, Kano, Katsina, Lagos, Ogun, Ondo, Osun, Oyo, Sokoto, Plateau and Rivers State as well as the FCT. 
Intervention is provided in kind by donors using internal transparent procurement processes driven with a clear governance structure of the various coalescing companies involved in the initiative, a release by NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, said 
The Oil Industry Intervention group is made up of the NNPC, Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers (DPPMA), Petroleum Technology Association of Nigeria (PETAN) and Nigeria Liquefied Natural Gas Limited (NLNG).
The Nigerian Oil and Gas Industry under the leadership of the NNPC has embarked on an Industry-wide collaborative intervention in recognition of the ravaging impact of COVID-19 pandemic on the critical sectors of the national economy. 
The initiative is to support the ongoing Federal Government’s efforts and in collaboration with the Presidential Task Force and the National Centre for Disease Control (NCDC) to curb the pandemic. 

Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation
NNPC Towers
Abuja.

11th June, 2020.





Jun 05
NNPC Expresses Commitment to Biodiversity
… As Corporation Marks World Environment Day
The Nigerian National Petroleum Corporation (NNPC) has expressed its determination to adhere to sustainable environment practices in all its operations to safeguard biodiversity in the country.

Group Managing Director of the NNPC, Mallam Mele Kyari, made this known Friday in Abuja in his keynote address as part of activities to commemorate the 2020 World Environment Day celebration with the theme ‘Biodiversity’. 

Mallam Kyari said that the corporation would continue to be guided by sound environmental policies and standards so that the NNPC does not harm the environment and the communities of creatures within its sphere of operations.

“NNPC’s firm position on sustainable environmental practice is today reignited by the theme of the 2020 World Environment Day, which seeks to raise further awareness on conservation of Biodiversity. Biodiversity has remained the single most important factor that enables all living creatures to depend on the mutual services of one another in order to ensure survival, a balanced ecosystem and the sustainability of our planet,” Mallam Kyari stated.

He explained that the emergence of pandemics such as Novel Coronavirus, otherwise known as COVID-19, a virus that was said to be common to Asian bats, has provided greater insights on how biodiversity equilibrium can shift, making it easier for diseases to pass from animals to people.

Mallam Kyari decried that over the years, the world has been impacted by deforestation, expansion of agriculture, mining activities and massive infrastructural development, stressing that these activities have directly or indirectly impacted the balance of biodiversity, making wild species and alien organisms struggle to find new homes.

Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
NNPC, Abuja.

5th June, 2020 



Jun 05
NNPC Raises Alarm Over Off-Spec Diesel in Market
The Nigerian National Petroleum Corporation (NNPC) has raised an alarm over prevalent low grade and contaminated AGO, otherwise called, diesel offered at discounted prices in parts of the Country. 
The warning was contained in a report by NNPC Retail Limited Managing Director, Sir Billy Okoye, admonishing motorists to be wary of the off-spec products, a release by NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, has said. 
Sir Okoye stated that the warning became necessary because the low grade, contaminated diesel is harmful to machines and environment, explaining that NNPC Retail Limited as a market leader considered it incumbent upon it to alert the public on the subject. 
He assured consumers that NNPC Retail Limited deals only in premium, high-quality products in the interest of Nigerian motorists and users, urging consumers to patronize the company’s stations where the quality of their products is assured. 
As a deregulated product, diesel is also imported by other major and independent marketers in the Country. 
 
Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation
NNPC Towers
Abuja.

5th June, 2020.


Jun 05
NNPC Explains Measures to cut Crude Oil Production Cost
The Nigerian National Petroleum Corporation (NNPC) is taking measures to bring down cost of crude oil production to $10 per barrel or below, the Corporation’s Chief Operating Officer (COO), Ventures and Business Development, Mr. Roland Ewubare, has said.
A press release by the Group General Manager, Group Public Affairs Division of the corporation, Dr. Kennie Obateru, stated that Mr. Ewubare made the declaration today on a Channels TV breakfast programme, Business Morning.
The COO explained that terrain peculiarity was an important factor in determining cost, arguing that issues such as pipeline vandalism and crude oil theft, among others, were some of the factors peculiar to the Nigeria terrain that drive up crude oil production cost in the country.
He, however, stated that NNPC was looking very closely at such variable as logistics, security and transportation with a view to reducing cost of production to $10 and below per barrel.
He disclosed that much had been done over the years in the area of reducing contracting cycle which used to be a major factor responsible for high cost of production, stressing that the National Petroleum Investment Management Services (NAPIMS) achieved a six-month contracting cycle under him as Group General Manager.
Amidst speculations of non-compliance by some countries with the production cuts agreed upon by the Organisation of the Petroleum Exporting Countries (OPEC) and its non-member allies, Mr. Ewubare affirmed that Nigeria was in full compliance with the agreed output cuts, saying reports including Nigeria on the list of non-compliant countries were not true.
Mr. Ewubare explained that though Nigeria’s total production capacity was 2.3million barrels per day (mbpd), it was currently producing only about 1.4mbpd in compliance with the OPEC+ production quota, stressing that what makes up the little extra over the 1.4mbpd figure being bandied around for Nigeria was condensate which is usually not computed as part of production in OPEC quota. 
“There’s some confusion in the market around the parameters for the production cuts. Nigeria has a full production capacity of about 2.3mbpd. We are currently producing between 1.6 and 1.7mbpd. Our OPEC quota as a result of the cuts is about 1.4mbpd. You and I know that condensate is not included in the computation of the cut numbers. So what we have is 1.4mbpd of crude oil. The little you see above 1.4mbpd is made up of condensate which does not count as part of the basis for assessing our OPEC quota”, Ewubare clarified. 
NNPC Group Managing Director, Mallam Mele Kyari, in a recent interview advanced a similar position where he stressed that NNPC was working assiduously to bring down the cost of crude oil production to not more than $10 per barrel by 2021. 

Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation
NNPC Towers
Abuja.

5th June, 2020.



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No, this isn't actually my picture. I just haven't gotten around to updating this section. It's good to know that someone is reading every last word though. Thanks!

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