The Nigerian National Petroleum Company Limited (NNPC) is collaborating with international oil companies and domestic producers to reduce their production expenses. This initiative has the potential to achieve savings of $3 billion this year and could total $4.5 billion by December 2025.
During the 50th anniversary celebration of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, an initiative was spearheaded, represented by Udobong Ntia, the Executive Vice President for Upstream. He explained that the strategy aims to reduce unit operating and technical expenses to increase sector value.
He said, “We’re re-engineering our operations to reduce expenses. In six months, we identified $3 billion in savings. Our next target is $4.5 billion before year-end.”
Nigeria’s production costs, which span from $20 to $40 per barrel, are among the highest in the world. This is largely due to numerous taxes, levies, security challenges, and fees paid to intermediaries. In contrast, the global average costs are significantly lower.
He stated that President Bola Tinubu has established a goal to secure $30 billion in oil and gas investments within the next two years. The government aims to increase this amount to $60 billion by 2030. To reach this target, there is a strategy to enhance operations in deepwater, shallow offshore, land, and swamp fields.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
