‘Oil production costs in Nigeria are among the top ten in the world’

'Oil production costs in Nigeria are among the top ten in the world'

As it received at the weekend, Nigeria belongs to 10 producing nations which have the greatest price of crude oil per barrel.

Chairman / Managing Director Paul McGrath, Nigerian company chairman and managing director, said the federal government required to tackle a number of oil industry problems in order for the sector to reach significant milestones. He said the federal government required to tackle these problems.
McGrath, the chairman of the Oil Producer Trade Section (OPTS), Lagos Chamber of Commerce and Industry (LCCI), also expressed his views on objectives such as increasing investment inflows, enhanced petroleum reserves and daily manufacturing and adequate national refining and gas utilization in the country.

He defined the nation as the world’s biggest producer of oil and one of the brightest in the world with hydrocarbon opportunities. “To preserve and broaden the investment profile in the hydrocarbon industry, however, there are remedies to be implemented,” he added.

“Nigeria is among the top ten nations with the largest oil per barrel production costs and gas equivalent. High costs are a significant disincentive for investment, particularly at a moment when worldwide competitiveness is very important. Because of the significant rise in maintenance and work overheads, the operating costs are growing. The cost of security is increasing because the characteristics of the company setting require extra resources to safeguard our staff and assets, “he said.

The Nigerian National Petroleum Corporation (NNPC) also said the Nigerian oil reserves will increase from 37 billion barrels to 40,000,000 barrels in 2025.

NNPC’s Group Managing Director, Mallam Mele Kyari, spoke at a conference with theme: Harnessing the oil and gas potential for national Development.

Kyari also stated that, from the present 2.2 million bpd, oil production will rise to three million barrels per day (BPD).

Represented by Chief Financial Officer of the Corporation Umar Isa Ajiya, GMD stated that achieving these goals by 2025 was part of attempts to optimize the petroleum industry’s potential for speedy economic growth.

He says: “We work with our partners, from the NNPC’s viewpoint, to increase the domestic reserves to 40 billion barrels by 2025 and further enhance the output of crude oil by 3 million barrels a day over the period. We do not overlook the fact that massive investments are needed throughout the value chain to attain these objectives.

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“The company plans to open a midstream system, finish all critical projects aimed at supplying around three billion standard cubic feet of gas to the market daily, and further closing the Nigerian Liquid and Natural Gas (NLNG) Train 7 investment choice and improving home use for boosting electricity generation and industrial development.”