Lagos — Amidst the recent crash in crude oil prices, the Nigerian National Petroleum Corporation, NNPC, has expressed readiness to put in place measures that would drop the cost of crude oil production in Nigeria to create market for Nigeria’s crude and make the country a choice destination for Foreign Direct Investment.
Group Managing Director of the NNPC, Mallam Mele Kyari, made this known at the Central Bank of Nigeria Round Table in Abuja on Wednesday.
Mallam Kyari stated that at the moment, the cost of crude oil production in the country was in the range of $15 to $17 per barrel, adding that some leaders in the industry such as Saudi Arabia’s cost of production is between $4 and $5 per barrel.
He noted that due to the uncertainties in the global crude oil market, countries that produce at the cheapest price would remain in the market while those with high cost of production would not be able to cope with the competing prices.
He disclosed that in the face of the crash in crude oil prices following the coronavirus, Saudi Arabia has given discount of $8 and Iraq $5 to their off-takers in some locations, meaning that when crude oil sells at $30 per barrel, Saudi Arabia is selling at $22 per barrel and Iraq at $25 per barrel.
Kyari said the NNPC was working round the clock to increase the country’s daily production to 3 million barrels per day and shore up crude oil reserves to 40 billion barrels.
Mallam Kyari called on government at all levels, captains of industries and the organised private sectors to brace for the new low regime of global crude oil prices, adding that realistic estimates must be made to reflect the current realities in the crude oil market.