The Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mele Kyari, has disclosed that Nigeria remains one of the most expensive countries in the world for petroleum upstream projects.
Upstream is refers to points in production that originate early on in the processes of crude oil production. Its activities include exploration, drilling, and extraction.
Kyari made this known at the Nigerian Content Tower in Yenagoa, Bayelsa State during a review meeting with the Permanent Secretary, directors and chief executives of agencies in the Petroleum ministry.
According to him, “Nigeria is one of the most expensive territories in the world for upstream projection and part of the corporation’s mandate is to reduce cost by at least five percent.
“We have reduced costs substantially and there are a number of interventions. We have set a target for the industry and our partners to bring down the cost of production to at least $10 to a barrel.”
Also, the Minister of State for Petroleum Resources, Timipre Sylva, listed some key achievements of the sector in the past 12 month, including the signing of the Final Investment Decision for NLNG Train 7 project, the commencement of the AKK pipeline project championed by the Nigerian National Petroleum Corporation (NNPC) and implementation of the deregulation of the downstream sector of the petroleum industry among others.
He said other notable accomplishments include, the completion and commissioning of the 17-storey headquarters building of the Nigerian Content Development and Monitoring Board (NCDMB) and commissioning of the Waltersmith modular refinery, developed with 30 percent equity from the NCDMB.
On his part, the Executive Secretary NCDMB, Engr. Simbi Wabote commended the Minister for instituting a review meeting for all agencies under the ministry, where they would also plan for the future of the sector.
While speaking on the ministry’s goal to build Partnerships on Flare Commercialization Programme and Liquefied Petroleum Gas penetration, Wabote noted that the Board was catalysing local manufacturing of 1.2 million composite LPG cylinders per annum in Bayelsa and Lagos State.
He said: “The Board is also supporting flare-out projects through Duport Midstream Company’s 300 million standard cubic feet per day (MMscfd) gas gathering hub in Edo and NEDO 110MMscfd gas processing project in Delta State. The Board is also supporting the establishment of LPG storage/filling plants in five states and as well as LPG distribution depots in six states.”
He added: “Towards increasing domestic refining capacity, NCDMB has so far enabled a combined capacity of 80,000 barrels per day (bpd) modular refining capacity through its investments in Waltermith in Imo, Azikel Refinery in Bayelsa and Duport in Edo States, with other proposals under review.”