The Nigerian National Petroleum Corporation NNPC, has asked for stakeholders’ collaboration in the oil and gas industry in order to optimize oil price to $10 per barrel.
Kyari said that due to demand erosion caused by the COVID-19 pandemic and the current reality dictated by the global energy transition, cost optimization was essential.
“It is in our informed interest to optimise our cost of production. The realities of energy transition and investor choices are very much clear to us. There is nowhere in this world where a less cost-efficient operator can survive today.
“Industry players need to adopt such measures as transparency, collaboration, efficiency and shared services to help in driving down cost in order to meet the target.
“Under the NNPC operational theme for the year known as ‘Execution Excellence’, the Corporation will 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,” he said.
Chief Timipre Sylva, Minister of State for Petroleum Resources, stressed that there was a need for cost optimization to keep the oil and gas industry from sinking because the current average cost of Joint Venture Production was below $30 per barrel and that of Production Sharing Contract (PSC) production was below $20 per barrel.
The Minister stated;
During his Goodwill message, Senator Bassey Akpan, Chairman, Senate Committee Upstream, stated that the 9th National Assembly would pass the Petroleum Industry Bill (PIB) to ensure a favourable environment for operators corresponding with global best practices.
Trade group and agency leaders as well as abour unions in the oil and gas sector, that spoke at the event, described the inceptive as a welcome development and pledged their support for NUCOP.
The stakeholders include the Nigerian Content Development and Monitoring Board (NCDMB), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Oil Production Trade Section (OPTS), Independent Petroleum Producers Group (IPPG) and the Petroleum Technology Association of Nigeria (PETAN).