NNPC REDUCED OIL BARREL PRODUCTION COST TO US$20

NNPC have reduced cost of producing barrel of oil to US$20

The Nigerian National Petroleum Corporation ( NNPC ) have successfully reduced cost of producing a barrel of oil to US$20. The corporation also said it it taking necessary measures to further reduce the cost to US$15 per barrel.

NNPC said, it has sign four Memoranda of Understanding (MOU) with state governments for the production of bio fuel. The bio-fuel is to complement the volume of petrol supply across the country.

It is interesting to note that this reduction in cost will help increase federal government revenue.

According to the Group managing director, Mr. Maikanti Baru, “We have been innovative in our work to bring down the cost. Many Nigerians don’t even know that we started the local content drive. We have brought down the cost of producing a barrel of oil today to the neighbourhood of US$20 and our target is to make sure we are at US$15, and we continue to march forward.”

Also commenting on bio-fuel production, Mr. Baru said NNPC aside from oil and gas is also focused on the propagation of other more efficient fuels in the country.

He also disclosed that efforts are underway to train Nigerians who would take over the operations of the country’s refineries when fully rehabilitated.