NNPC Saves $3b Yearly From Production Cost Cut

NNPC Saves $3b Yearly From Production Cost Cut

The Nigerian National Petroleum Corporation (NNPC) yesterday announced that it has saved the nation a minimum of $3billion yearly from the reduction in the cost of crude oil production.

According to the corporation’s statement, it has driven down the cost of crude oil production from $78 per barrel as at August 2015 to $23 per barrel, representing 70.5 per cent reduction. The Group General Manager of the National Petroleum Investment Management Services (NAPIMS), a unit of NNPC, Dafe Sejebor,  disclosed this during the inauguration of the unit’s Anti-Corruption Committee.

Sejebor said NAPIMS arrived at the figure after looking at the difference between the $78 and $23, which represents the old and new cost of production in relation to the present daily average production in the country.

He said: “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).”

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