Oil companies must produce crude oil at $10 per barrel or close shop—says NNPC

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Oil companies must produce crude oil at $10 per barrel or close shop—says NNPC

…target is $10 per barrel by end 2021

 
Oil companies must produce crude oil at $10 per barrel or close shop—says NNPC

The Nigerian National Petroleum Corporation has warned that companies that cannot bring their production cost to $10 per barrel come end of fiscal 2021 should close.

Mele Kyari, group managing director of the corporation said companies must learn how to be efficient, be cost-effective and do away with expenses that are not necessary, stating that there are costs embedded into projects by contractors which are not realisable.

The NNPC boss who spoke on ‘the Impact of COVID19 on the Nigerian oil and gas – the way forward’ at a Webinar conference organized by National Association of Petroleum Exploration (NAPE) said that $10 per barrels cost of production is now the expectation of the industry by end 2021. This he said is realisable as new cost structures are being put in place at the moment.

He bemoaned the apparent lack of efficiency among the operators and stated that it would not be business as usual.

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