Nigeria’s Oil Production Hits 1.6mBpd Worth N61bn, Highest in Months, Excited NNPC Sets New Target

• There is a massive improvement in Nigeria's oil production and NNPC could not hide its excitement
• Mele Kyari has revealed that Nigeria now produced 1.6 million barrels of oil each day worth and has set a new target
• This is a major boost to the efforts by the federal government to ensure that the country produces crude oil in huge commercial quantities to sell

The Nigerian National Petroleum Company Limited (NNPCL) has revealed that Nigeria's oil production has risen to 1.6 million barrels per day, its highest level in months.

Mele Kyari, group chief executive officer, NNPCL disclosed this at the Final Cut over ceremony of the company in Abuja on Friday, February 17 2023, Punch reports.

Speaking during the ceremony, an excited Kyari said Nigeria is now on course to achieve an oil production level of 1.8 million barrels per day in the next two to three months.

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The development suggests that the Nigerian government's crackdown on oil thieves is now yielding some positive results.

This also means if NNPC should sell all 1.6 million barrels daily, at the current price of 83.07per barrel, the country will be making $132.9m or N61.13bn daily.

BusinessDay reports that Kyari in his address said:

“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 confidence of our investors and ultimately bring back growth."

Future plans for NNPC

Kyari also expressed optimism that the company will still do well even with the numerous challenges, making reference to its peers in other countries who are able to declare $9 billion in profits.

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“We will catch up with them by reducing our costs, growing our production, prudent in our commercial decisions, be fair to our partners, and in line with the provisions of the PIA, over 90 percent of its differences with partners have been resolved."

Subsidy payment

Speaking on subsidy payment the NNPC boss said there is a subsidy on the supply of petroleum products particularly PMS into the country.

He explained that as of Tuesday, the landing cost was around N350 to a liter and it was transferred to customers at N130 per liter leaving a deficit of N202.

He stated:

“By base computation, N202 multiply by 66.5 million litres multiply 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."

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NNPC, NMDPRA speak on staff recruitment exercise reports, warn Nigerians

Meanwhile, in another report, the Nigerian National Petroleum Corporation has said reports that it is recruiting are fake and should be ignored by Nigerians

The national oil company revealed that announcement of any recruitment would be made through the right channels

Similarly, the NMDPRA has also issued a warning to Nigerians that there is no ongoing recruitment reported

Source: Legit.ng