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The Nigerian National
Petroleum Corporation (NNPC) said the country had saved a minimum of 3 billion dollars
per annum on Crude oil production.
In a statement signed by
Mr. Ndu Ughamadu, Group General Manager, Group Affairs Division, on Wednesday
in Abuja, said the cost of crude oil production went down from 78 dollars per
barrel as at August 2015 to 23 dollars per barrel.
This, it said represented
70.5 per cent reduction in production cost.
It said the Group General
Manager of National Petroleum Investment Management Services (NAPIMS), a unit
of NNPC, Mr Dafe Sejebor, disclosed this during the inauguration of the
Anti-Corruption Committee of the unit.
He said NAPIMS arrived at
the figure after looking at the difference between the 78 and 23 dollars which
represent the old and new cost of production in relation to the present daily
average production in the country.
“If you knock down your
cost of production from 78 dollars per barrel to 23 dollars, take the
difference and multiply by the average daily production, you will discover that
we are saving a minimum of 3billion dollars in the upstream for both Production
Sharing Contracts (PSCs) and Joint Ventures (JVs)”, he said.
He added that the target
was to bring the cost of production to between 17 and 19 dollars for onshore
and offshore production respectively.
He commended the Federal
Government for its support to the NNPC management in tackling the challenges in
the petroleum industry, especially the cash call exit agreement signed in 2016
and the reduction of contracting circle from three years to six months.
On the new Petroleum
Policy, Sejebor said it was necessitated by the increasing difficulty in
operating the petroleum industry within the framework of the old Petroleum Act
in the face of the delayed passage of the Petroleum Industry Bill (PIB).
He said the policy would
restore investors’ confidence in the industry pending the full passage of the
entire PIB by the National Assembly.
Commenting on the NAPIMS
Anti-Corruption Committee, he urged the
management and staff to let the principles of accountability, integrity,
honesty and transparency be their watchword.
He charged them to
generate positive ideas to help tackle the challenges facing the industry and
help reverse its fortunes.
He urged staff to key into
the NNPC management’s zero tolerance for corruption.
The Group Managing
Director of NNPC, Dr Maikanti Baru, while inaugurating the Anti-Corruption Unit
at Corporate Headquarters recently, had directed all the Strategic Business
Units (SBUs) and Corporate Service Units (CSUs) to establish their own
anti-corruption committees.
NAPIMS is the first to
comply with the directive.
Credit: NAN
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