The Nigerian National Petroleum Company Limited [NNPC] Ltd has confirmed that Nigeria’s output has risen to 1.6 million barrels per day. It is assumed the highest in many months now.
Disclosing this in a chat last weekend in chat during the company’s Final Cut over ceremony in Abuja, the group chief executive officer, Mr. Mele Kyari said Nigeria is on course to achieve an oil production level of 1.8 million barrels per day in the next two to three months.
He said indeed that the development is an indication that the latest onslaught against oil thieves and criminals damaging crude oil infrastructure is bringing results.
“I know that it is not far away probably two to three months maximum, but we will be there and that will bring back partners to invest, return the confidence of our investors, and ultimately bring back growth,” he said.
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Kyari expressed optimism that the company would continue to perform well despite the challenges, citing peers in other countries who had declared $9 billion in profits.
The NNPC chief added: “We will catch up with them by reducing our costs, growing our production, being prudent in our commercial decisions, being fair to our partners, and in line with the provisions of the PIA, over 90 percent of its differences with partners have been resolved.”
On fuel subsidy, he said the landing cost for Premium Motor Spirit (PMS) otherwise known as petrol was N350 per litre and it was transferred to customers at N130 per litre leaving a deficit of N202.
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“By base computation, N202 multiplied by 66.5 million liters multiplied by 30 will give you over N400 billion of subsidy every month; there is a budget provision for it but it is also a drain on our cash flow when we do not get refunds from the ministry of finance,” he concluded.
By Bosco Agba