The Group Chief Executive Officer of Nigerian National Petroleum Company Limited- NNPCL, Mele Kyari, has revealed that Nigeria is on course to achieve oil production level of 1.8 million barrels per day in the next two to three months.
Mele Kyari, also said NNPCL crossed the 1.6 million bpd oil production threshold on February 16, adding that there is a line of sight to hit a recovery level to the budget level of 1.8 million bpd.
Kyari who made the revelation at the Final Cut over ceremony of the company in Abuja said “I know that it is not far away probably two to three months maximum, but we will be there and that will bring back partners to invest, return confidence of our investors and ultimately bring back growth,” he said.
He also disclosed that NNPCL is working to grow its gas assets and in two to three years, the company along with its partners will be able to deliver 8 million metric standard cubic feet of gas into the domestic market which is a revolution for the company.
He said there is subsidy on the supply of petroleum products particularly PMS into the country, noting that as of last Tuesday, landing cost was around N350 to a litre and it was transferred to customers at N130 per litre leaving a deficit of N202.
“By base computation, N202 multiply by 66.5 million litres multiply by 30 will give you over N400 billion of subsidy every month; there is a budget provision for it but it is also a drain on our cash flow when we do not get refunds from the ministry of finance,” he said.
Kyari however expressed optimism that the company will still do well even with the numerous challenges, making reference to its peers in other countries who are able to declare $9 billion in profits.
“We will catch up with them by reducing our costs, growing our production, prudent in our commercial decisions, be fair to our partners, and in line with the provisions of the PIA, over 90 percent of its differences with partners have been resolved,” he said.
In his remarks, the Minister of State for Petroleum Resources, Timipre Sylva, said the transformation is not to stifle the private sector in the Nigerian oil and gas industry but to encourage growth, attract investment and maximise the dividend to the investors and the teeming population of Nigeria.
He said as required all the assets interests and liabilities have been transferred from the corporation to the company and all loose ends need to be tightened to ensure a successful and competitive company that will stand the test of time for a foreseeable future
“It is now imperative for NNPC limited to sharpen his business tools to remain afloat and compete favourably with the best in the industry worldwide, the current refurbishing of the moribund refineries must succeed if we are to be taken seriously by our stakeholders,” he said.
The minister added that, the ongoing efforts to eradicate oil theft and pipeline vandalism must succeed if the industry must remain attractive in terms of investment in comparison with other companies across the world.
“…while we believe that oil and gas will continue to be a substantial part of the energy mix worldwide. We should strive not to be left behind, in fully transforming into an energy company with interest in both renewables and non-renewable energy sources,” the minister said.
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