The Nigerian National Petroleum Corporation (NNPC) has again pledged its commitment to slash the cost of producing oil to $10 per barrel, to enable it to remain competitive and deliver value to Nigerians.
A statement from the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted NNPC Group Managing Director, Malam Mele Kyari, as making the pledge during the 20th Nigeria Oil and Gas Conference (NOG) themed: “Fortifying the Nigerian Oil & Gas Industry for Economic Stability & Growth,” which held virtually.
Kyari projected that the global demand in the oil and gas industry will remain suppressed till the end of 2020. He, however, noted that despite all the forecasts, oil will continue to play a significant role in the energy mix till 2050.
He said: “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.
“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.”
According to him, the ensuing global oil challenge will have an impact on NNPC’s production, which means that the corporation must become more cost-efficient and be quick to reach the market.
“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 is striving 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.
Kyari said the Petroleum Industry Bill (PIB) is the key enabler to ensure that NNPC’s fiscal environment becomes more competitive and transparent, where investors can project into the next 30 years.