The Nigerian National Petroleum Company Limited (NNPCL) is partnering with international and domestic oil producers to slash production costs, aiming for savings of $3 billion this year and up to $4.5 billion by December 2025.
Speaking at the 50th anniversary of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, NNPCL’s Executive Vice President for Upstream, Udobong Ntia, outlined the cost-cutting strategy.
“We’re re-engineering operations to lower expenses. In six months, we achieved $3 billion in savings, with a goal of $4.5 billion by year-end,” he said.
Nigeria’s oil production costs, ranging from $20 to $40 per barrel, are among the highest globally, driven by taxes, levies, security issues, and intermediary fees, compared to lower global averages.
Ntia emphasized that reducing these costs is critical to boosting the sector’s value.
He also noted President Bola Tinubu’s target to attract $30 billion in oil and gas investments by 2027, with a long-term goal of $60 billion by 2030.
This will involve optimizing operations across deep water, shallow offshore, land, and swamp fields to enhance efficiency and competitiveness.
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