NNPC CUTS PRODUCTION COST TO $23/BARREL
source : http://www.eyesoflagos.com/2017/08/nnpc-cuts-production-cost-to-23barrel.html

The Nigerian National Petroleum Corporation (NNPC) said yesterday that the country has saved a minimum of $3billion per annum by cutting the cost of crude oil production from $78 dollars per barrel to $23 per barrel as at August 2015, representing 70.5 per cent reduction.
Eyes Of Lagos source revealed that, The Group General Manager of National Petroleum Investment Management Services (NAPIMS), a unit of NNPC, Engr. Dafe Sejebor, disclosed this during the inauguration of the anti-corruption committee of the unit.
A statement issued by the Corporation’s spokesperson, Ndu Ughamadu, noted that NAPIMS arrived at the figure after looking at the difference between the $78 and $23 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 per barrel to $23, take the difference and multiply by the average daily production, you will discover that we are saving a minimum of $3billion in the upstream for both Production Sharing Contracts (PSCs) and Joint Ventures (JVs)”, Engr. Sejebor was quoted as saying.
The GGM added that the target was to bring the cost of production to between $17 and $19 for onshore and offshore production respectively.
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.
On the NAPIMS anti-corruption committee, Sajebor 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 admonished staff to key into the NNPC management’s zero tolerance for corruption.
It would be recalled that the GMD of NNPC, Dr Maikanti Baru, while inaugurating the Anti-Corruption Unit at the corporate headquarters recently, had directed all the Strategic Business Units (SBUs) and Corporate Service Units (CSUs) to establish their own anti-corruption committees, a directive which NAPIMS was the first to comply with.

The bottom line is, we are drowning in our own oil with very few buyers. Once the Keystone pipeline is completed in the U.S, the oil glut will only get worse. America will be a net exporter of crude and refined oil, then what? Countries with vision have already started diversifying their economies away from oil while we rely on it for 94% of our budget. Tesla is building gigafactories and coming up with powerful batteries to power cars and homes, we are here talking about oil. I saw with my two eyes a fan powered by algea, common algae we used to study under microscopes in secondary school Integrated Science, that's what someone used to generate energy. We are only deceiving ourselves, the world is moving on and not carrying us along.

That's a good move if actually what they're saying is true. Cos, i hardly believe any positive news about 9ja these days. All we hear everyday is bad news

Hope this will be sustained after 2019 election. However, credit should be given to the management of NNPC for this great achievement! !

Don't un'stand

If we can't get the effect on the price of fuel, all you are saying is RUBBISH.

Ponzi government... Abeg talk wetin non academic people like myself can understand...

I don't even know what to type... ..

APC and lies. How can you say you cut production cost from $78 per barrel to $23 per barrel. When the crude oil is just sold between $30 to $45 per barrel.??


So the cost of production is higher than the selling price. APC should keep on with their lies on gulliable Nigerians.

Stupid lies

Nigeria govt and their hope in oil. Thought they have diversified the economy already.


Check my signature for your customised ATM card Flash Drive ID CARD.

Gud for dem

Excellent job from Kalichukwu

One more reason why Nigeria is not going to be Venezuela.

That's good news for progressive Nigerians

Join cawid forum (cawid.com)

This is normal in management, the cost of production must be reduced if not they will be selling at loss. Gone are the days when crude oil was been sold at high price ($100 per barrel), but not now at low price ($50 per barrel or there about).

another nice development

Saving with mounting financial responsibilities is not intelligence.
Power supply (way below mediocre) even colombia has light,
security professionalism (f),
education (d-),
road infrastructure(d--),
rail(f),
airports(c),
agriculture(d-),
healthcare(f),

Any country with these problems don't need any stupid savings.

The problem with this is it doesn't give details.

What drove the fall from $78 to $23 in per barrel production cost?

Is it technology? Is it fall in hire rate for rig?

I expect the GGM to state that.

Production cost bbl is not some form of regulated cost that can change by fiat. It contains elements that make it. Which of the elements reduced or got off?

Na so

So when does fuel price drop?

This should reduce the price of fuel ⛽ to N65 per litre

NNPC and figures.

The truth is that the cost of production has reduced globally.

Nigeria still ranks 3rd as the most expensive country as per cost of oil production per barrel as can be seen in the attached image.

The most expensive in terms of OPEC members in cost of oil production.

This government should stop these halve truths.

http://graphics.wsj.com/oil-barrel-breakdown/

Clone2020:
The bottom line is, we are drowning in our own oil with very few buyers. Once the Keystone pipeline is completed in the U.S, the oil glut will only get worse. America will be a net exporter of crude and refined oil, then what? Countries with vision have already started diversifying their economies away from oil while we rely on it for 94% of our budget. Tesla is building gigafactories and coming up with powerful batteries to power cars and homes, we are here talking about oil. I saw with my two eyes a fan powered by algea, common algae we used to study under microscopes in secondary school Integrated Science, that's what someone used to generate energy. We are only deceiving ourselves, the world is moving on and not carrying us along.

sigh.....most Nigerian leaders are illiterates, the youths are only intrested in white colar jobs. I assure you Nigeria does not need oil to survive. we are blessed with every single rare resource available in this world, minerals,land for Agricultural activities, man power, we even have uranium, but we all ignore them & concentrate on oil.
well, our eyes go soon clear, make i continue expanding my farming enterprise so it becomes an empire b4 that time

It seems one need to look at the alternative energy sector,it is growing stronger

Another good news this morning

Clone2020:
The bottom line is, we are drowning in our own oil with very few buyers. Once the Keystone pipeline is completed in the U.S, the oil glut will only get worse. America will be a net exporter of crude and refined oil, then what? Countries with vision have already started diversifying their economies away from oil while we rely on it for 94% of our budget. Tesla is building gigafactories and coming up with powerful batteries to power cars and homes, we are here talking about oil. I saw with my two eyes a fan powered by algea, common algae we used to study under microscopes in secondary school Integrated Science, that's what someone used to generate energy. We are only deceiving ourselves, the world is moving on and not carrying us along.

God bless u boss. Spot on!