Victor Ezeja
Despite the drop in crude oil production, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, has asserted that 1.785 million barrels of oil per day (bpd) in 2024 is realisable for Nigeria.
Kyari stated this when he met with the Senate Committee on Finance to defend the projections on crude oil production in the 2024.
Join our WhatsApp ChannelAccording to a statement signed by the Chief Corporate Communications Officer of the NNPC, Olufemi Soneye, on Wednesday, December 13, the NNPCL GCEO informed the Committee that the projections on crude oil production and price benchmark for the 2024 Budget were realistic and achievable.
The 2024 appropriation bill 0f N27.5 trillion presented to the National Assembly recently by President Bola Tinubu has a projection of 1.785 million barrels of oil per day and $77 per barrel estimate.
Kyari 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 output of crude oil, “blended and unblended and condensate,” according to the most recent statistics from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), dropped to 1.47 million barrels per day in November, marking a 5.8 percent decrease in production from October.
October production output which was put at 1.56mpd, was also a slight decline from that of September when it rose to 1.57mpd.
“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, Kyari added, while commenting on the dynamics of the market concerning the $77.96 per barrel proposed budget benchmark price.
“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.”
Although there were obstacles like security and force majeure, he was optimistic that the Federal Government’s initiatives would be sufficient to ensure the anticipated level of output.
In addition, the GCEO assured that NNPC would continue to remit dividends to the Federation Account at the level specified in the Medium-Term Expenditure Framework and that the anticipated dividends from Nigeria Liquefied Natural Gas Ltd. were likewise attainable and would enter the Federation Account in accordance with legal requirements.
READ ALSO: Oil Prices Drop Threatens Nigeria’s 2024 Revenue Target
According to the statement, Mohammed Sani Musa, chairman of the Senate Committee on Finance, explained that the goal of the interactive session, was to deepen discussions on the forecasts in the 2024 Appropriations Bill in order to assist the parliamentarians in deciding what and where to adjust.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
