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Nigeria Blames Expatriates, Others for High Production Cost of Oil

Nigeria Blames Expatriates, Others for High Production Cost of Oil

Nigeria has confessed that its highest crude oil production cost come from indigenous oil firms. It also stated that the deployment of expatriates was contributory to high production cost, as some companies produced crude oil for as high as $45/barrel.

Speaking during the Seplat Energy Seminar 2020 webinar, the Group Managing Director, Nigerian National Petroleum Corporation (NNP{C), Mele Kyari, last week, said the cost of the commodity had hovered around $43/barrel in about two weeks.

The Minister of State for Petroleum Resources, Timipre Sylva, who gave the opening remarks at the summit, stated that government had rolled out strategies to reduce oil production unit cost.

The NNPC boss had recently said that some oil firms in the country were producing at over $90 per barrel. The NNPC boss, however, pointed out that few companies such as Seplat would achieve the target of cutting down the production cost to $10/barrel by 2021. “When you come to the indigenous oil companies, and I have made an exception of Seplat and, of course, a few others, I can share with you that the highest cost of production that we have in this industry comes from companies operated by local oil firms. Unfortunately as it is, that is the reality,” he said.

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Source: OrientEnergyReview

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