All posts tagged "$10 Oil Production Cost"

By Adedapo Adesanya The Nigerian National Petroleum Corporation (NNPC) has called on stakeholders in the oil and gas industry to join in working towards reducing production cost to $10 or less per barrel. The Group Managing Director of NNPC, Mr Mele Kyari, made this call on Tuesday at the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP) which held at the NNPC Towers, Abuja. In a statement issued by the Group General Manager, Group Public Affairs Division, Mr Kennie Obateru, the NNPC boss was quoted as saying that the current reality dictated by the global energy transition and demand challenges brought about by the COVID-19 pandemic has made cost optimization an important consideration moving forward. “It is in our informed interest to optimize our cost of production. The realities of energy transition and investor choices are very much clear to us. "There is nowhere in this world where a less cost-efficient operator can survive today,” the GMD posited. He called on industry players to adopt such measures as transparency, collaboration, efficiency and shared services to help in driving down cost in order to meet the target. Mr Kyari disclosed that under the NNPC operational theme for the year known as Execution Excellence, the corporation would achieve a contracting cycle of six months or less which would help create efficiency and drive down unit operating cost to sub $10 per barrel level. In his address, the Minister of State for Petroleum Resources, Mr Timipre Sylva, stated that currently, the average cost for Joint Venture production was below $30 per barrel while that of Production Sharing Contract (PSC) production was below $20 per barrel, stressing that there was the need for cost optimization in order to keep the oil and gas industry afloat in Nigeria. “Today’s engagement with industry stakeholders, under the NUCOP, is part of the resolve of this administration to confront this challenge of high production cost. "I expect robust discussions and a realistic roadmap to achieve the cost optimisation objectives,” the Minister stated. In his goodwill message, the Chairman, Senate Committee Upstream, Mr Bassey Akpan, said the 9th National Assembly would pass the Petroleum Industry Bill (PIB) to provide a conducive environment for all operators in line with global best practices. Leaders of agencies, trade groups and labour unions in the Oil and Gas Sector such as the Nigerian Content Development and Monitoring Board (NCDMB), Oil Production Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), Petroleum Technology Association of Nigeria (PETAN). Others are Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) who spoke at the event described the initiative as a welcome development and pledged their support for NUCOP. NUCOP is an industry-wide initiative designed to optimize Nigeria’s upstream operating expenses through process enhancement and industry collaboration to ensure improved and sustainable profitability for all stakeholders.

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All posts tagged "$10 Oil Production Cost"

$10 Oil Production Cost: NNPC Calls Stakeholders for Talks