In a bid to intensify its value addition for Nigerians, the Nigerian National Petroleum Corporation (NNPC) has disclosed that plans are being concluded to cut down unit cost of oil production in the country to $10 per barrel, saying such would aid its competitiveness in the industry.
This is coming as the national oil company admitted that the ensuing global oil challenge would have an impact on NNPC’s production, but was quick to add that modalities are being adopted to ensure the corporation become more cost-efficient and get to market quickly.
The NNPC’s Group Managing Director, Mele Kyari, said that despite all the forecasts, oil would continue to play a significant role in the energy mix till 2050.
Speaking during the 20th Nigeria Oil and Gas Conference (NOG) themed “Fortifying the Nigerian Oil & Gas Industry for Economic Stability & Growth” which held virtually recently, the NNPC boss projected that the global demand in the oil and gas industry would remain suppressed substantially till the end of 2020.
According to him, 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.
“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.
“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,” the GMD added.
He explained that the NNPC was 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.
According to the GMD, the Petroleum Industry Bill (PIB) was the key enabler that would ensure NNPC’s fiscal environment becomes more competitive and transparent, where investors can project into the next 30 years.