Nigeria’s crude oil daily production is up by 9 per cent to about 2.09 million barrels.
Nigerian
National Petroleum Corporation (NNPC) Group Managing Director Dr.
Maikanti Baru said this maintained a line of consistent year-on-year
improvement.
Dr. Baru, in a comprehensive end-of-year-message to
the NNPC staff, listed Nigerian Petroleum Development Company (NPDC),
Nigerian Gas Company (NGC), Petroleum Products Marketing Company (PPMC),
Duke Oil, NIDAS and Integrated Data Services Limited (IDSL) among the
re-engineered companies.
In the statement signed by NNPC Group
General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, Baru
singled out NPDC, the corporation’s Upstream flagship company, as the
major contributor to the industry’s success in 2018.
Baru said
the average production from NPDC’s operated assets alone grew from an
average of 108,000 of oil per day (bod) in 2017 to 165,000bod in 2018,
describing the feat as the strongest production growth within the oil
industry in recent times, even as he noted that it was worth being
celebrated.
The GMD said NPDC’s equity production share, which
stands at 172,000bod, representing about 8 per cent of national daily
production, was no less impressive, adding that the desired results are
outcomes of initiatives his Management team emplaced, among which, he
noted, are the Asset Management Tea (AMT) structure, Strategic
Financing, Units Autonomy and security architecture framework.
Of
the Industry milestones in the outgone year, Baru described the
200,000bop addition which the Egina Floating Production Storage and
Offloading (FPSO), completed and sailed away to location in August, last
year, added to nation’s daily production, even as he disclosed that the
project achieved First Oil at 11.20pm on 29th December, 2018.
The
NNPC GMD said $1.7billion was saved with corporation’s Joint Venture
(JV) partners over a five-year tenor repayment plan, saying already the
corporation has defrayed $1.5billion of the arrears.
Baru
promised that NNPC would stick to the Repayment Agreement with the JV
Partners while transiting to self-funding IJV modes with the
corporation’s partners. He said tiding up Cash Call issues had led to
increased commitment and enthusiasm to invest in the industry even as it
has also boosted NNPC’s credit profile internationally.
Baru
concluded the achievements of NNPC in the Upstream sector by listing
other milestones achieved by his team to include: reduction in
contracting cycle for Upstream Operations to nine months from an average
of 24, even as the corporation targets a six months cycle; lowering of
production cost from $27/barrel to $22/barrel; and improving on the
security situation in the Niger Delta through constructive engagement
and dialogue with stakeholders.
In the frontier basins, NNPC has
intensified exploration in the Benue Trough, with the expected spudding
of Kolmani River Well 2 on 19thJanuary.
Activities will resume in the Chad Basin as soon as there is a greenlight on the security situation in the enclave.
In
the Midstream, the NNPC GMD stated, Nigeria achieved an average
national daily gas production of 7.90bscf, translating to 3 per cent
above the 2017 average daily gas production of 7.67bscf.
He
said of the 7.90bscf produced in 2018, an average of 3.32bscfd (42%) was
supplied to the export market, 2.5bscfd (32%) for Reinjection/Fuel Gas,
1.3bscfd (16%) was supplied to the domestic market and about 783mmscfd
(10%) was flared.
The GMD stated that out of the 1.3bscfd
supplied to the domestic market, an average of 71mmscfd went to the
Power Sector; 470mmscfd was supplied to the Industries and the balance
of 69mmscf delivered to the West African Market through the West African
Gas Pipeline (WAGP).
Baru said NNPC would bridge the medium-term
domestic gas supply deficit by 2020 through the corporation’s Seven
Critical Gas Development Projects (&CGDPS), adding that a reputable
Project Management consulting firm is collaborating with an NNPC team to
achieve accelerated implementation of the projects.
He lauded
the contribution of the corporation’s Downstream outfit, NNPC retail,
saying it played a significant role in ensuring continuous supply of
petroleum products to Nigerians through its Mega, Affiliates and Leased
stations.
Baru flaunted the company’s sale of 1.2 billion litres
of petroleum products in 2018 as against 1.1 billion litres in 2017,
representing a seven per cent increase.
He said the feat was
achieved through an addition of 40 new Affiliate and Leased stations,
which he said, brought the company’s network to 618 stations nationwide.
“We
are currently planning for a better performance and achievement in
2019, especially with the continuous innovations and creativity in the
downstream sector and the performance bond signed by all the relevant
heads of our operating units.
“Continuous improvement as one of
the principles of world class organisations is going to remain our key
word in 2019. Last year was empirically better than 2017, we believe,
plan and strive to achieve a better performance this year, by God’s
grace,” Baru concluded in his end-of-year statement.
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