NNPC sets $10 oil production cost target by 2021

With its current unit cost across all operating terrains averaging between $9 and $22 per barrel, the Nigerian National Petroleum Corporation says it has set an oil production cost target ceiling of $10 per barrel by 2021.

The Group Managing Director of the corporation, Mele Kyari, during a web meeting with journalists said high oil production cost is a major concern in the face of the sharp decline in crude oil prices as a result of the impact of the Coronavirus pandemic on the global oil market.

According to Him, in 2019, the full-year performance of the oil industry showed the unit operating cost for all the joint venture operating companies was excess of $10 per barrel, with data for the first quarter of 2020 showing a performance above the target.

Mr Kyari said there need to put a halt to the rising cost and begin to do things differently.

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