Crude Oil Cost: NNPC Sets Q4 2021 Target For $10/barrel
The Nigerian National Petroleum Corporation (NNPC), yesterday, disclosed that it plans to achieve a $10 per barrel cost of crude oil production by the fourth quarter of 2021.
In a statement in Abuja, Chief Operating Officer, Ventures and Business Development of the NNPC, Mr. Roland Ewubare, explained that a lot of logistics costs would be recalibrated to drive down the cost of crude oil production in the country.
He said, “When you have a low commodity price regime, as the case now, the only way we can squeeze out some reasonable cash and financial gain to the nation is by curtailing and constraining our costs in line with the Group Managing Director’s aspiration to push for a $10 per barrel cost of production. Against this backdrop, the conversation around cost becomes an imperative and urgent one.”
Ewubare, further stated that as part of measures to cope with the boom and bust cycle in the global crude oil market and to sustain revenue generation for the country, the NNPC was firming up a bouquet of business portfolios in the power, medical, housing and other sectors that would strengthen its profitability.
Specifically, he noted that the Ajaokuta-Kaduna-Kano (AKK) pipeline network would enable the NNPC to deepen its footprint in the power sector through the establishment of an Independent Power Plant.
He added that the NNPC would use its network of excellent medical centres across the country to provide innovative healthcare for Nigerians.
Ewubare said: “NNPC is creating an energy company that would have portfolios in renewable energy; we have initiatives on solar that is ongoing. We have got biofuels agreements with some state governments that would soon be activated.
“We do have a lot of non-core businesses that are aggregated under the Ventures and Business Development Autonomous Business Unit of the NNPC that would be expanded through effective collaboration and partnership with the private sectors.”
He added that the NNPC had a lot of hectares of land across the country and would soon be partnering with private developers to reduce the housing deficit in the country for the benefit of Nigerians who are the core shareholders of the corporation.
Ewubare further stated that the NNPC was working closely with its partners to commercialise flared gas by converting it to Compressed Natural Gas (CNG) and Liquefied Natural Gas, adding that the gesture would preserve the flora and fauna of the country.