.. as NPDC looking to produce 500,000 barrels of crude oil per day – Kyari
The Nigerian National Petroleum Corporation (NNPC) said it would generate a total revenue of N19.545 trillion between 2021 and 2023.
This as Group Managing Director of the Nigeria National Petroleum Corporation, Mele Kyari has also, assured that the Nigeria Petroleum Development Company will scale up its production to 500, 000 barrels of crude oil per day in the next two years to meet domestic consumption
The Corporation stated this in an interactive session organised by the Senate Joint Committee on Finance and National Planning on 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (FSP).
It also said the report on missing 48 million barrels of crude oil was unfounded and a total falsehood.
“Our revenue projections for the three-year period of 2021 to 2023 are: in 2021, we projected to generate N5.6 trillion; in 2022, we projected to generate a revenue of N6.575 trillion and in 2023, we expect to generate a total of N7.37 trillion,” the Group Managing Director (GMD) of NNPC, Mele Kyari, represented by the Chief Finance Officer, Umar Ajiya, said.
It also urged the National Assembly to carry out a forensic audit on the claim, if it so desired as it approved the corporation’s yearly budget.
The issues of alleged missing barrels of crude oil and unapproved yearly budget of the corporation was raised at an interactive session organised by the Senate Joint Committee on Finance and National Planning on 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (FSP).
Mr Ajiya said the fact was that there were no records of ships that sailed out of the Nigerian waters with such contraband and clearance from the Nigerian Navy and Department of Petroleum Resources (DPR).
“No ship leaves the country without clearance from the appropriate unit of the Nigerian Navy and there is no way any ship with such alleged stolen crude can escape from the Nigeria shore. As far as the NNPC is concerned, no barrel of crude oil is missing as falsely alleged and very ready to be investigated over it inform of commissioning of a forensic audit by the national assembly at its own cost,” he said.
He told the lawmakers that the yearly budget of the corporation was vetted and approved by them through consideration and passage of MTEF and FSP that entailed revenue projections of the corporation.
“Proposals such as our revenue projection, cost of operations are well stated in all MTEF/FSP documents made available to the national assembly for consideration and approval, the basis upon which the nation’s budget is passed and signed into law, meaning that it is you (national assembly) that approves our yearly budget,” he explained.
He said the current GMD of NNPC is a change agent and the corporation under him has nothing to hide.
He explained further that the 21 dollar per barrel production cost the corporation was incurring on each barrel of crude oil would soon be reduced to 13 dollars per barrel to reduce production cost
However, Kyari, has assured that the Nigeria Petroleum Development Company will scale up its production to 500, 000 barrels of crude oil per day in the next two years to meet domestic consumption.
Speaking at the facility tour of Gas Handling Facility in Ologbo, Benin, Kyari said NPDC was currently producing 260,000 barrels per day as against the 136,000 barrels per day it produced a year ago.
According to Kyari, this is a very magnificent level of growth in any upstream company. He added that the NNPC was working with NPDC to hit the set target.
He said, “With the current level of work, it is possible for the NPDC to hit 500,000 barrel per day in two years.
“Today, NPDC has the highest number of rigs running in this country. Five rigs are running at the same time adding value and delivering major projects which will ultimately contribute towards the production of the 500,000 per day target.”
“Also, we are producing about five billion Standard Cubic feet (scf) of gas into the entire domestic market with NLNG and NPDC contributing to that total,” he added.
Kyari assured that the Ologbo plant when completed in October would halt the importation of LPG as Nigeria was blessed with gas and other petroleum resources.
He said, “At that time, you will see at least 30 trucks turning out of this place every day into the domestic market. This will be unprecedented.
“At that point, gas will be delivered without interruption into the domestic market, while crude oil will also be supplied to the international market by our own company under our control.”
He added that the NPDC was a company owned 100 per cent by Nigeria and vowed to deliver it to be the number one upstream company in the country.
