- Mele Kyari, NNPC boss, has warned against looming global recession as oil price tumbled at international market
- Kyari said Nigeria must prepare for tough days ahead as 50 LNG cargoes are still stranded due to the outbreak of coronavirus
- The NNPC GMD also expressed disappointment over the inability of Nigeria to fund both oil and gas sectors at the same time
Amid fear of global recession following the fall in the price of petroleum, Mele Kyari, Nigerian National Petroleum Corporation (NNPC)'s general managing director, has warned against beckoning tough times.
Kyari gave the warning on Tuesday, March 10, during the ongoing consultative roundtable themed ‘Going for Growth’ organised by the Central Bank of Nigeria (CBN) in Abuja.
The NNPC boss in his key address described the collapse of oil price at the global market as a bad omen for the oil-producing states in which Nigeria also belongs, Business Day reports.
Kyari said there are 50 LNG cargoes globally stranded as a result of deadly coronavirus which has plunged the international communities into economic unrest and deficit.
“As at yesterday, Iraq dropped their prices by $5 and Saudi Arabia by $8 to some locations. So when your crude oil sells at $30 and you are dropping it by $8, this means that you are seeking at $22 in the market.
“That’s a huge problem and can be tolerated by some production environment like Saudi Arabia whose average production cost is about $4-$5 per barrel.
“This cannot happen in Nigeria,” Kyari noted.
Kyari further expressed disappointment over the inability of Nigeria to fund both the oil and gas sectors at the same time.
"We do not have the capacity to finance the oil and gas sector in Nigeria and if we don’t do this, coupled with the competing needs, resources, we would not be able to produce oil competitively.”
Earlier, Legit.ng reported that the Nigerian National Petroleum Corporation (NNPC) on Friday, December 13, promised that it would create 50,000 jobs for unemployed youth across the country.
The pledge was made by the group managing director of the corporation, Mallam Mele Kolo Kyari, during the signing ceremony of NLNG Trains 1-3 & 7 Gas Supply Agreements (GSAs).
He said the corporation is planning to create 10,000 directs jobs and 40,000 of indirect jobs for the teeming unemployed Nigerians.
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