Connect with us

Business

NNPC eyes new target as cost of production per barrel of crude drops to $20

Published

on

NNPC eyes new target as cost of production per barrel of crude drops to $20

The Nigerian National Petroleum Corporation (NNPC) says that it has been able to bring down the cost of producing a barrel of crude oil to $20.

The corporation stated this on Monday, adding that it is still making efforts to further have cost of producing a barrel at $15.

The cost of producing a barrel of crude oil before the coming of the current government was said to be $78. But in August last year, the NNPC claimed that it had reduced that amount as at August 2015 to $23 per barrel, which represents 70.5 per cent reduction.

The NNPC Managing Director, Maikanti Baru, who spoke during the ongoing Science Fair in Abuja, also announced that NNPC had signed four memoranda of understanding with state governments for the production of biofuel to complement the volume of petrol being supplied across the country.

Baru was represented at the event on Monday by the NNPC’s Chief Operating Officer, Gas and Power, Mohammed Seidu.

“What the NNPC will like Nigerians to know is the drive we are making to bring down the cost of producing oil. The more we bring down the production cost of oil and gas, the more money that comes eventually to the Federal Government and the pockets of the state and local governments.

“We have been innovative in our work to bring down the cost. Many Nigerians don’t even know that we started the local content drive. We have brought down the cost of producing a barrel of oil today to the neighbourhood of $20 and our target is to make sure we are at $15, and we continue to march forward,” he said.

Speaking on biofuel production, he said that apart from crude oil and gas production that the oil firm was also into the propagation of other efficient fuels.

READ ALSO: NNPC’s claim on subsidy payment mere cover for ‘huge fraud’ in Buhari’s gov’t- PDP

“Of course, that is another area. There is little that people know, that we are not only propagating oil and gas, but we also make sure that we promote biofuels and other more efficient fuels in the country.

“What we have done today is to sit down in the driver’s seat, not necessarily as the investor, but to make sure that the people that are coming in are on board. Today, we have signed four MoUs with state governments to roll out initiatives around the biofuels,” NNPC boss stated.

According to him, NNPC is already training Nigerians that would take over the country’s refineries the moment they are fully restored.

 

 

RipplesNigeria… without borders, without fears

Click here to join the Ripples Nigeria WhatsApp group for latest updates.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now