NNPC reduces cost of producing crude oil per barrel to $20

Business & Economy

The Nigerian National Petroleum Corporation (NNPC) has brought down the cost of producing a barrel of crude oil to $20, even as it now targets producing the black gold at $15 per barrel.

NNPC Group Managing Director, Dr. Maikanti Baru, who disclosed this Monday in Abuja during the NNPC Day at the ongoing Technology and Innovation Expo 2018, attributed the feat to the impact of science, technology and efficient work processes, saying the mileage would enable more revenue generation to the Federal Government.

The Expo 2018 has the theme: Fast Tracking Sustainable Development of Nigeria Through Science and Technology in Abuja.

Represented by the Chief Operating Officer (COO), Gas and Power, Engr. Saidu Mohammed, the GMD noted that the NNPC had been innovative and efficient in its various operations to drive down the cost of production of crude oil and gas.

Dr. Baru said the NNPC was not only participating in the Science Fair but was also in full support of the ideals behind the event, stressing that science and technology is the bedrock of the Oil and Gas Industry.

The GMD stated that the corporation had succeeded in domesticating engineering, procurement, construction and most of the major activities of the Oil and Gas Industry, adding that heading to London to prepare mere tender documents for engineering, procurement and construction belonged to the distant past.

“Today we have fully domesticated the engineering, procurement and construction aspect of the Oil and Gas Industry and we are working hand-in-hand with the Nigerian Content Development and Monitoring Board (NCDMB) to get Nigerians who are willing to invest and innovative to propel this country going forward to go into the ventures of fabrication where we spend the big chunk of the money in the industry. In other words, we have gone far to domesticate procurement,” Dr. Baru stated.

He explained that today, there were fabrications going on in the areas of valves, line pipes, stressing that Nigeria has also gone into fabrication of vessels.

Dr. Baru disclosed that NNPC would continue to support all sorts of innovations in the upstream, midstream and downstream sector.

Commenting on the Ajaokuta-Kaduna and Kano pipeline project, popularly referred to as AKK pipeline project, the GMD stated that the pipelines of the project were fully domesticated in line with the local content policy of the Federal Government, saying for the other areas of services required, Nigerians would do all the pre-commissioning and commissioning services of the project.

On the refinery revamp, the GMD disclosed that already the NNPC was training some Nigerians that would be fully engaged in the refineries revamp, stressing that tremendous amount of jobs and services that would be required would all be provided by Nigerians.

The GMD stated that the NNPC was committed to promotion of efficient consumption of energy in the mold of biofuels, adding that already the corporation has signed four Memoranda of Understanding (MoU) with different State Governments and investors to actualize the introduction of more environmentally friendly fuel.