Concerns have been raised about the issue of crude theft and insecurity across the country. These fears and agitations have been talked about by the Federal Government and operators in the oil and gas sector.

The FG noted that operating expenses in the oil and gas sector are rising, thereby affecting profit margins. The rising expenses are also said to be affecting the ability of the country to meet its $10 per barrel production cost target.

Addressing stakeholders at the yearly conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos, The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari lamented the country’s high cost of production in the wake of the COVID-19 pandemic.

He stated the cost of crude oil production in Nigeria was within the range of $15 to $17 per barrel. He also said in a country like Saudi Arabia, the cost of production is between $4 and $5 per barrel.

Kyari explained that the fiscal environment, especially in the upstream sector remains sabotaged and threatened by insecurity and crude theft.

The NNPCL boss noted that the country’s production rate is a low one, due to the challenge of insecurity. He added that countries that produce at the cheapest price remains in the market. He said this is as a result of the irregularities on the global crude oil market.

He further stated if the country resolves insecurity, production will return back to 2.1 million barrels per day.

https://newsroundtheclock.com/nigeria-loses-10-per-barrel-production-target-due-to-crude-theft-insecurity/