The cost incurred to produce a barrel of crude oil in Nigeria has declined to $27 per barrel as at year end 2016, from more than $70 per barrel in 2014, the Nigerian National Petroleum Corporation (NNPC) said in a tweet on Thursday.


NNPC in the tweet said its Group Managing Director (GMD) Dr. Maikantic Baru made the disclosure at the 14th Annual Aret Adams Memorial Lecture in Lagos.

Baru, who was represented by the corporation's Chief Operating Officer (COO) Gas and Power, Engr. Saidu Mohammed, spoke on the theme: "Find More, Produce More"

The GMD said since coming on board in 2016, the NNPC under him has recorded a significant reduction in the cost of oil and gas production.

"I am proud to announce that our Unit Technical Cost (UTC) has significantly dropped from above $70 p/b in 2014 to about $27 p/b as at year end 2016," Baru said.

He said that with reduced cost of production, government's share of economic revenue will improve which means reduced budget deficit.

Daily Trust reports that despite recording significant drop in the cost of producing a barrel of crude, Nigeria remains the third most expensive country to produce oil in the world.

According to a recent Wall Street Journal's (WJS) survey of 12 notable oil producers, Nigeria stands behind the United Kingdom (UK) and Brazil in the production cost analysis. Both countries produce a barrel of oil at $44.33 and $34.99 respectively.


The survey said production in Nigeria was more expensive than it is in the United States despite US use of expensive technology which combines horizontal drilling and a technique known as hydraulic fracturing to mine its Shale oil.

However, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu had last year said his tenure will work hard to reduce the cost of crude production below $18 per barrel

Read more at http://www.dailytrust.com.ng/news/general/nigeria-s-oil-production-cost-drops-by-43-barrel-in-3-years-nnpc/186643.html#bdCHOGzjlQ0HgOB6.99

Insane Nigeria the 3rd most expensive place to drill oil. How after all this time can Nigeria suck at this. Cost go down over time due to economies of scale right?

Anyway if US Shale plays are less expensive than conventional drilling going here we got issues.

Blue3k:
Insane Nigeria the 3rd most expensive place to drill oil. How after all this time can Nigeria suck at this. Cost go down over time due to economies of scale right?

Anyway if US Shale plays are less expensive than conventional drilling going here we got issues.

You actually believe that story?
That price was fake. The JV partners were using it to scam NNPC/NAPIMS. With devalued Naira, the cost of production is even less than the $27 a barrel. The oil companies are not even going into about 30% of their locations presently due to the nombings ..making things even better in terms of expenditure

Our sharing mentality is to blame. Why won't cost of production go up when we employ so many ideal and under-productive hands as reward for all manner of things?

its gejs fault

zombies where una dey

#nofreeoyel

Adminisher:


You actually believe that story?
That price was fake. The JV partners were using it to scam NNPC/NAPIMS. With devalued Naira, the cost of production is even less than the $27 a barrel. The oil companies are not even going into about 30% of their locations presently due to the nombings ..making things even better in terms of expenditure

You said everything I needed to say. You can't even point to one reason why it was so high in the first place, only to reduce with the dwindling oil price. Iran and Saudi production cost is less than $18 per barrel... The fraud in the oil and gas industry has been institutionalized.

Ok