NNPC calls for industry players’ support to drive down cost
The Nigerian National Petroleum Corporation (NNPC) has called on stakeholders in the oil and gas industry to support in reducing operations costs to achieve the $10 or less per barrel production cost target.
Group General Manager, Group Public Affairs Division of NNPC, Dr. Kennie Obaterui disclosed this in a statement shared via the corporation’s Twitter handle.
Obateru stated that the Group Managing Director of NNPC, Mallam Mele Kyari, made the call at the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP), which was held in Abuja. He explained that the current reality dictated by the global energy transition and demand erosion occasioned by the Covid-19 pandemic has made cost optimisation imperative.
Mallam Kyari added 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.
Meanwhile, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said, “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 optimization objectives.”
NUCOP is an industry-wide initiative designed to optimise Nigeria’s upstream operating expenses through process enhancement and industry collaboration to ensure improved and sustainable profitability for all stakeholders.
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