NNPC committed to growing hydrocarbon reserves, reducing cost of oil production: Kyari

*The Corporation’s major objective is to grow Nigeria’s hydrocarbon reserves, reduce unit operating cost of crude oil production to $10 per barrel, and improve efficiency across its businesses ─Mele Kyari, Group Managing Director of NNPC

Emmanuel Akosile | ConsumerConnect

In its efforts at developing the oil and gas industry, the Nigerian National Petroleum Corporation (NNPC) has restated its resolve to grow the Nigeria’s hydrocarbon reserves to 40billion barrels through reinvigorated exploratory activities in the inland frontier basins across the country.

Malam Mele Kyari, Group Managing Director (GMD) of NNPC, disclosed this in his goodwill message as a Special Guest at the opening ceremony of the 38th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).

Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of the Corporation, in a statement in Abuja, FCT, Thursday, November 19, quoted Malam Kyari as revealing that crude oil has already been discovered in the Benue Trough in commercial quantity, with Nigerian Geologists spearheading the efforts.

The NNPC Chief stated that the strategy is to aggressively explore for more oil in the frontier basins towards growing the country’s reserve base in line with the Federal Government’s aspiration to hit the 40billion barrels reserve target.

According Kyari, the theme of this year’s conference: “Accelerating Growth in Nigeria’s Hydrocarbon Reserves: Emerging Concepts, Challenges and Opportunities”, fits squarely into NNPC’s key aspiration.

He disclosed that the Corporation’s major objective is to grow Nigeria’s hydrocarbon reserves, reduce unit operating cost of crude oil production to $10 per barrel, and improve efficiency across its businesses.

“It is my pleasure to appreciate the good work and resilience of our in-house professionals in the ongoing inland basins exploration activities that culminated in the recent discovery of hydrocarbons in Benue Trough. NNPC is indeed proud that it is NAPE members that are spearheading this effort,” Mallam Kyari stated.

According to him, the NNPC has made significant progress in improving operational efficiency through the adoption of technology and deliberate effort to curtail soaring cost of operations across strategic assets.

He said: “It is instructive to understand that the current market reality cannot support inefficiency and escalated costs of operations. The era of $30/bbl oil no longer exists.

“In today’s COVID-19 defined market, sustaining operations and making progress means that all stakeholders must recognise the need to improve efficiency, reduce costs, eliminate wastages, entrench accountability, act with transparency and embrace technology and innovation to drive performance and value realisation across strategic investment portfolios.”

In the face of the energy transition, the state oil corporation is focused on developing gas infrastructure and deepening domestic gas utilisation, stressing that gas is the energy of the future, stated he.

Kyari expressed optimism that the Petroleum Industry Bill (PIB) would be passed in 2021.

According to him, the fiscal environment proposed would attract more investment into the Oil and Gas Industry.

The NNPC GMD also assured NAPE and all other industry operators of sustained collaboration from NNPC.

The strategy of synergy, he added, is required in order to drive down operating cost and survive the emerging challenges in the industry.