The Nigerian National Petroleum Corporation (NNPC) on Thursday disclosed that it was targeting oil production cost of $10 by 2021.
NNPC’s Chief Operating Officer, Ventures and Business Development, Mr. Roland Ewubare who stated this in Abuja, explained that a lot of logistics costs would be recalibrated to drive down the cost of crude oil production in the country.
According to him, “when you have a low commodity price regime, as the case now, the only way we are able to squeeze out some reasonable cash and financial gain to the nation is by curtailing and constraining our costs in line with the GMD’s aspiration to push for a $10 per barrel cost of production. Against this backdrop, the conversation around cost becomes an imperative and urgent one”.
Ewubare also stated that the corporation would raise its bouquet of business portfolios in the power, medical, housing and other sectors to strengthen its profitability, according to a statement by NNPC’s spokesman, Dr. Kennie Obateru.
He said that the move was part of measures by the national oil firm to cope with the boom and bust cycle in the global crude oil market and to sustain revenue generation for the country.
Ewubare said the Ajaokuta-Kaduna-Kano (AKK) pipeline network would enable the NNPC to deepen its footprint in the power sector through the establishment of an Independent Power Plant.
He stated that NNPC would use its network of excellent medical centres across the country to provide innovative healthcare for Nigerians.
“NNPC is creating an energy company that would have portfolios in renewable energy; we have initiatives on solar that are ongoing. We have got biofuels agreements with some state governments that would soon be activated. We do have a lot of non-core businesses that are aggregated under the Ventures and Business Development Autonomous Business Unit of the NNPC that would be expanded through effective collaboration and partnership with the private sectors,” he added.
He disclosed that the NNPC had a lot of hectares of land across the country and would soon be partnering with private developers to reduce the housing deficit in the country for the benefit of Nigerians who are the core shareholders of the corporation.
The NNPC Chief Business Developer said the corporation was working closely with its partners to commercialize flared gas by converting it to Compressed Natural Gas (CNG) and Liquefied Natural Gas, adding that the gesture would preserve the flora and fauna of the country.
