Financial Energy Review
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.
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.
