10 December 2020 By Shakira Alabi
The Nigerian National Petroleum Corporation (NNPC) has, again pledged its commitment to bring down the unit cost of oil production in the country to $10 per barrel to remain competitive in the Industry and give value to all Nigerians.
The Group Managing Director of NNPC, Mallam Mele Kyari, made 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.
Mele Kyari who said global demand in the oil and gas industry would remain suppressed substantially till the end of 2020, however notes that despite all the forecasts, oil would continue to play a significant role in the energy mix till 2050.
“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,” Kyari stated.
He observed that the ensuing global oil challenge would have an impact on NNPC’s production, which means that the Corporation must become more cost-efficient and be quick to the market.
“As a National Oil Company 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.
The GMD also explained that the NNPC was already working hard to deepen domestic gas utilisation by emplacing the right fiscal environment and the right infrastructure to generate more employment and broaden Nigeria’s economy.
He said that 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.
In attendance at the event were some prominent Oil Industry personalities which include the Minister of State for Petroleum Resources, Chief Timipre Sylva; the Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Mr. Mohammed Sanusi Barkindo; the Director of the Department of Petroleum Resources (DPR), Mr. Sarki Auwalu; Managing Director, Nigeria LNG, Mr Tony Attah and the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote.