Malam Mele Kyari, Group Managing Director of NNPC

NNPC committed to reducing oil production cost, delivering value to Nigerians: GMD

*The Corporation is already working hard to deepen domestic gas utilisation by emplacing the right fiscal environment, infrastructure to generate more employment and broaden the economy: Nigerian National Petroleum Corporation

Isola Moses | ConsumerConnect

For the state oil firm to remain competitive in the industry and deliver more value to all consumers, the Nigerian National Petroleum Corporation (NNPC) has again, pledged its commitment to bringing down the unit cost of oil production to $10 per barrel in the country.

Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division, in a statement Wednesday, December 9 quoted Malam Mele Kyari, Group Managing Director of NNPC, as making the pledge during the 20th Nigeria Oil and Gas Conference (NOG).

The theme of the conference, which held virtually is: “Fortifying the Nigerian Oil & Gas Industry for Economic Stability & Growth”.

Kyari projected that the global demand in the oil and gas industry would remain suppressed substantially till the end of 2020.

The NNPC Group Managing Director, however, noted that despite all the forecasts, oil will continue to play a significant role in the energy mix till 2050.

He stated: “So, it doesn’t mean oil will vanish.

“What it means is that in terms of its significance, in terms of the volumes of contribution, it will reduce as the years go by.” Kyari said “it is also true that many countries have made significant business decisions in the use of fossil fuel, including the United Kingdom, which has said that no car will run on fossil fuel in the next 10 years.

“This portends a huge change in the way we consume fuel and as we progress, many countries may follow suit.”

The NNPC helmsman further observed that the ensuing global oil challenge will have an impact on NNPC’s production. This means that the Corporation must become more cost-efficient and be quick to the market, stated he.

He noted: “As a National Oil Company (NOC), looking forward to 2021 means we have to be more resilient and efficient in our operations.

“As a country, we have decided to bring down the cost of our oil production so as to remain competitive, be able to get to market earlier and remain in this game and ultimately, return value to our shareholders.”

According yo the NNPC Chief, the Corporation is already working hard to deepen domestic gas utilisation by emplacing the right fiscal environment and the right infrastructure in order to generate more employment and broaden Nigeria’s economy.

He added that the Petroleum Industry Bill (PIB) is the key enabler that will ensure NNPC’s fiscal environment becomes more competitive and transparent, where investors can project into the next 30 years.

Other prominent oil Industry personalities in attendance at the event include the Minister of State for Petroleum Resources, Chief Timipre Sylva; the Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Mr. Mohammed Sanusi Barkindo; Director of the Department of Petroleum Resources (DPR), Mr. Sarki Auwalu; Managing Director, Nigeria LNG, Mr. Tony Attah; and Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote.

Sylva, in his remarks, assessed the state of the sector, and agreed that urgent steps must be taken to ensure its survival.

The Minister said: “For us in the Ministry of Petroleum, we are looking at the National Gas Expansion Programme (NGEP), which will boost the use of natural gas in the short and medium terms.

“It is also part of the plan by the federal government to shift from crude oil to gas.

“We have initiated actions to improve gas accessibility and availability, and promote gas-based industrialisation as well as economic diversification.”

Barkindo, on the occasion, said in the last couple of months, the oil and gas industry in Nigeria has rebounded by over 116 percent due to the robust decisions taken by key stakeholders.

The OPEC Secretary-General as well disclosed that President Muhammadu Buhari, played a pivotal role in the OPEC Declaration of Cooperation (DoC) document.

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