Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, has said that 1.785 million barrels of oil per day (bpd) in 2024 is achievable for Nigeria.
This was disclosed in a statement signed by Olufemi Soneye, the Chief Corporate Communications Officer of the NNPC, on December 13.
According to the statement, Kyari told the Senate Committee on Finance that the projections on crude oil production and price benchmark for the 2024 Budget were realistic and realisable.
On the crude oil production projection, he said: “The number we have is 1.785mbpd. This is cumulative of all oil produced in the country. This figure is inclusive of all production including crude oil and condensate.
“I need to make this clarification because of the reports in the media that our OPEC quota is 1.5 million barrels per day. The OPEC quota is related only to crude oil. We also do between 250,000 to 300,000 barrels per day of condensate in our production. When you combine the two, the 1.78 mbpd is realistic and realisable.”
The latest data by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), revealed that the crude oil, “blended and unblended and condensate” output fell to 1.47 million barrels per day in November, indicating a back-to-back drop in production level since October.
Production level dropped to 1.56 million bpd in October after rising to 1.57 in September, the highest output level so far in the year. But the country could not maintain the momentum.
Speaking on the dynamics of the market concerning the projected budget benchmark price of $77.96 per barrel, Kyari said: “With what we see in the market today and potentially in the year 2024 and even beyond the next two years, it is very unlikely to see $70 per barrel oil in the market.
“The oscillation we are seeing, sometimes you do see prices coming down to $75 to the barrel and sometimes it goes above it, overall, benchmarks are averages. We think that the proposal by Mr. President around the $77.96 is still realisable in 2024.”
He expressed optimism that though there were challenges such as security and force majeure, the measures being deployed by the Federal Government would be able to take care of them to guarantee the projected level of production.
The GCEO also assured that NNPC will maintain the level of dividends remittance to the Federation Account as stated in the Medium-Term Expenditure Framework, adding that the projected dividends from the Nigeria Liquefied Natural Gas Ltd. were also realizable and would flow directly into the Federation Account as stipulated by the law.
While answering a question on the Company’s Road Tax Credit Scheme, Kyari said that all the roads being undertaken under the scheme would be duly completed, adding that the scheme was anchored by the Ministry of Works while the Federal Inland Revenue Service and NNPC were only playing supervisory roles to ensure that value is delivered for every kobo paid.
Speaking earlier, the Chairman of the Senate Committee on Finance, Mohammed Sani Musa, said the purpose of the interactive session was to deepen conversations on the projections in the 2024 Appropriation Bill to help the lawmakers determine what and where to adjust.
According to the statement, he expressed satisfaction with the explanations offered by the NNPC Limited’s helmsman.