Nigeria National Petroleum Corporation (NNPC) has confirmed that the country’s oil revenue target declined by N1.06 trillion due to the impact of the COVID-19 and low crude oil price.

The Group Managing Sirector, Malam Mele Kyari, stated this on Tuesday during a Nigerian Stock Exchange (NSE) oil and gas webinar with theme as: “Perspectives of Operations and Industry Experts Post- COVID-19”.

In his presentation, Kyari said the country’s N2.64 trillion oil revenue target declined by 40 per cent as a result of twin shocks of COVID-19 and low crude oil price.

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According to him, the pandemic created an unprecedented and global crisis that would cause regions, countries, sectors, companies and individuals to experience reaction, resilience, recovery and adjustment for a new reality.

Represented by Group General Manager, Finance, CHQ F&A, Mrs Rose Eshietti, the NNPC boss noted that upstream projects were delayed as a result of the pandemic restrictions.

“The energy industry is likely to continue to struggle in the wake of a precipitous drop in oil and gas prices due to dampened demand from the effects of COVID-19,” he said.

[Also Read] Can African Petroleum Producers Survive The Oil Price Slump?

Revenue and production declines, he opined, will continue to present major challenges for oil and gas companies, especially those at risk of being unable to refinance debt.

Speaking on emerging opportunities in the industry, Kyari said that the passage of the Petroleum Industry Bill would remove uncertainties and create investments opportunities in the oil and gas sector.

Kyari said that 40 billion barrels and three million barrels per day production target were potential investment opportunities for in-country storage capacity for crude oil. He urged industry players to exploit the country’s abundant gas reserves for in-country consumption.

[Also Read] NNPC Optimistic About a Quicker Economic Recovery

He added that private firms should support major partners in the establishment of Integrated Power Plants along the Abuja Kaduna Kano (AKK) Gas Pipeline project.

He said that oil and gas industry players should manage cost, improve efficiency and deliver required cash flow for reinvestment and expansion by taking advantage of opportunities that would keep the industry viable and ready for post COVID-19.

By Chibisi Ohakah, Abuja

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