NNPC secures $2bn discounts from renegotiated contracts – GMD
The Nigerian National Petroleum Corporation (NNPC) says it has secured $2 billion discounts in the last one year from renegotiated upstream contracts being executed by its various service providers.
The corporation said the feat was achieved in the quest to continually drive down the high cost of production in the industry.
A statement by spokesman of the corporation, Ndu Ughamadu, said the Group Managing Director (GMD) of the corporation, Dr. Maikanti Baru, announced this in a podcast message to the corporation’s staff to mark the one year anniversary of his appointment as the corporation’s helmsman.
The GMD also said that the ownership of controversial Oil Mining Licence, OML13, had been restored to the Nigerian Petroleum Development Company (NPDC) NNPC’s flagship upstream company, following a presidential intervention. The first oil from the well is expected before the end of the year.
Baru, who took over the mantle of leadership of NNPC from current Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, July 4 2016, said already NNPC had lowered operating costs of crude oil production from $27/barrel to $22/barrel.
“For the upstream, cost reduction and efficiency are key features that we will pay attention to,” he said in the 25-minute podcast.
Speaking further on the achievements of the NNPC under him, Baru said there had been a significant increase in crude oil reserves and production, stressing that during the period, the national average daily production was 1.83 million barrels of oil and condensate while currently, the year-to-date 2017 average production hovers around 1.88 million barrels. AZMAN AIR