NNPC Renegotiates Deep Offshore Rig Rate, Gets 72% Discount

The Nigerian National Petroleum Corporation (NNPC) yesterday said it has renegotiated its deep offshore rig rate from a staggering $580,000 to $164,000 per day, translating to a cost savings of 71.7 per cent.

It also stated that it achieved a 35 per cent downward review of rig rates per day for both swamp and land operations within its oil production portfolios.
The corporation’s Group General Manager, Public Affairs, Ndu Ughamadu, stated this in a statement he sent to THISDAY in Abuja.

Ughamadu said the Group Managing Director of NNPC, Dr. Maikanti Baru, who was represented by the Chief Operating Officer, Gas and Power of NNPC, Saidu Mohammed, at the 14th annual Aret Adams memorial lecture in Lagos, said these.

Baru said these cost reductions were also effected in NNPC’s Unit Technical Cost (UTC) for oil production, which he noted dropped from $70 per barrel to $27/b between 2014 and 2016.
By definition, a rig rate is a major cost element incurred by an oil and gas Exploration and Production (E&P) company in the course of drilling for oil or gas in deep offshore, shallow offshore, swamp, land areas or basins.

Thisday, February 24, 2017

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