NNPC Boss Laments Theft, Insecurity as Responsible for Low Crude Oil Output
By Our Reporter
The Nigerian National Petroleum Company Limited (NNPCL) has identified oil theft and insecurity in the country as part of the reasons why the government agency has not been able to meet up with its production targets.
The Group Chief Executive Officer (GCEO) NNPCL, Mele Kyari, said these issues were responsible for underinvestment in the sector.
Kyari who spoke during stakeholders engagement session in Lagos said that the NNPCL planned to drill 53 oil wells as part of its efforts to raise production, but added that it may be impossible to have two million barrels per day (bpd) production target.
He further explained that it was difficult to increase oil production as a result of huge security challenges, adding that there were also issues of infrastructure to deliver the crude oil volumes to the market.
Kyari said, “I can see a number of people who have got marginal fields. Yes, they are drilling, but they are concerned about how to take the production to market.
“Everybody is thinking of barging. We know barging is an abnormality. Nobody is going to spend at least $7, in some cases, $21 to transport a barrel of oil to the terminal. So, barging is not normal, barging is not economical, but that’s what we are doing today.
“But the good news is that there is substantial work that is being done by government that I’m aware. Nobody speaks about it. But I know that this will come to pass. It’s already subsiding. We are already seeing the results.
“I know I cannot promise two million barrels per day. It’s not possible today. But is it practical? Yes. As at today’s data, we are inching close to 1.7 million barrels per day. Should we celebrate this? No. And I can tell you why. On April 17, 2020, without drilling new wells, our production shot up to 2.5 million barrels a day.”
The Nigerian National Petroleum Company Limited (NNPCL) has identified oil theft and insecurity in the country as part of the reasons why the government agency has not been able to meet up with its production targets.
The Group Chief Executive Officer (GCEO) NNPCL, Mele Kyari, said these issues were responsible for underinvestment in the sector.
Kyari who spoke during stakeholders engagement session in Lagos said that the NNPCL planned to drill 53 oil wells as part of its efforts to raise production, but added that it may be impossible to have two million barrels per day (bpd) production target.
He further explained that it was difficult to increase oil production as a result of huge security challenges, adding that there were also issues of infrastructure to deliver the crude oil volumes to the market.
Kyari said, “I can see a number of people who have got marginal fields. Yes, they are drilling, but they are concerned about how to take the production to market.
“Everybody is thinking of barging. We know barging is an abnormality. Nobody is going to spend at least $7, in some cases, $21 to transport a barrel of oil to the terminal. So, barging is not normal, barging is not economical, but that’s what we are doing today.
“But the good news is that there is substantial work that is being done by government that I’m aware. Nobody speaks about it. But I know that this will come to pass. It’s already subsiding. We are already seeing the results.
“I know I cannot promise two million barrels per day. It’s not possible today. But is it practical? Yes. As at today’s data, we are inching close to 1.7 million barrels per day. Should we celebrate this? No. And I can tell you why. On April 17, 2020, without drilling new wells, our production shot up to 2.5 million barrels a day.”
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