Oil Production Cost To Be Pegged At $10 Per Barrel By 2021 -NNPC GMD

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said that efforts are being intensified to achieve a Unit Operating Cost (UOC) of  $10 per barrel across upstream production by 2021.

Unit operating cost is the cost of production per barrel.

Kyari said that by 2021, the $10 per barrel target would take effect.

The GMD who was speaking at a virtual conference with editors on Thursday said that the, “UOC for the 2019 full year performance exceeded the target $10 per barrel in all cases.”

He added, “It is observed that reported performance for the first quarter of 2020 highlights the need for further cost optimization as UOC figures are above the target of $10 per barrel in all cases.”

Kyari stated that in the 2020 revised budget some of the Production Sharing Contract (PSC) companies used figures indicative of UOC above $10 per barrel.

He said Nigeria would adhere to the IOrganisation of Petroleum Exporting Countries (OPEC) production cuts, saying the country would produce 1.142 million barrels per day in May and June, 1.495 million barrels between July and December and 1.579 million barrels per day between January 2021 and April 2022.

SOURCE: thewhistler.ng