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Nigeria can achieve 1.785 mbpd by 2024, according to NNPCL

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NNPCL has said that 1.785 mbpd in 2024 is achievable for Nigeria. The company said this in a December 13 statement signed by Olufemi Soneye, the Chief Corporate Communications Officer.

According to the statement, Mele Kyari, the Group Chief Executive Officer of the NNPCL assured the Senate Committee on Finance, earlier today, December 13, that the projections on crude oil production and price benchmark for the 2024 Budget were realistic and realisable.

On Wednesday at 8:03 PM, GMT+1, Brent crude price was $73.86 per barrel. However, Kyari told the Senate Committee that the projected budget benchmark price of $77.96 per barrel is realistic.

He said:

“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. 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.”

Nigeria’s oil production is 1.785, not 1.5 mbpd

According to Kyari, the projected 1.785 million barrels per day of crude oil production stated in the 2024 budget as the country’s benchmark is cumulative of all the oil produced in the country, both crude oil and condensates.

He also clarified as follows:

“I need to make this clarification because of the reports in the media that our OPEC quota is 1.5million 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.”
He expressed optimism that though there were challenges such as security and force majeure, the measures being deployed by the Federal Government would be able to take care of them to guarantee the projected level of production.

Kyari also assured that NNPC Ltd. will maintain the level of dividends remittance to the Federation Account as stated in the Medium-Term Expenditure Framework, adding that the projected dividends from the Nigeria Liquefied Natural Gas Ltd. is also realizable and would be flowed directly into the Federation Account as stipulated by the law.

NNPC road tax credit scheme

During the session, Kyari explained that all the roads being undertaken under the scheme would be duly completed, adding that the NNPC road tax credit scheme was anchored by the Ministry of Works while the Federal Inland Revenue Service and NNPC Ltd. were only playing supervisory roles to ensure that value is delivered for every kobo paid.

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