NNPC CEO, Mele Kyari, Affirms Realistic Target of 1.785 Million BPD for Nigeria’s Oil Production in 2024

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Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, has stated that Nigeria’s target of producing 1.785 million barrels of oil per day (bpd) in 2024 is achievable. Kyari made this assertion during an interaction with the Senate Committee on Finance. He emphasized that the projections for crude oil production and the price benchmark in the 2024 budget are realistic and realizable. Kyari clarified that the 1.785 million bpd figure includes both crude oil and condensate, dispelling misconceptions related to the OPEC quota.

Key Points:

  • Mele Kyari, NNPC CEO, affirms the achievability of Nigeria’s target to produce 1.785 million barrels of oil per day in 2024.
  • The statement clarifies that the 1.785 million bpd figure encompasses both crude oil and condensate, emphasizing the cumulative nature of the production.
  • Kyari refutes media reports suggesting that Nigeria’s OPEC quota is limited to 1.5 million barrels per day, stating that this quota pertains only to crude oil.
  • The NNPC CEO expresses optimism about achieving the budget benchmark price of $77.96 per barrel in 2024, citing market dynamics and price oscillations.
  • Challenges such as security and force majeure are acknowledged, but Kyari expresses confidence in the government’s measures to address them.
  • NNPC commits to maintaining dividends remittance to the Federation Account and assures the realization of projected dividends from the Nigeria Liquefied Natural Gas Ltd.
  • Mele Kyari provides assurance on the completion of roads under the Company’s Road Tax Credit Scheme, emphasizing the collaborative role of relevant authorities in overseeing the scheme.

Analysis: Mele Kyari’s affirmation of Nigeria’s oil production target for 2024 signals the NNPC’s confidence in its operational capabilities and the broader strategic measures taken by the government. The clarification on the composition of the 1.785 million bpd figure provides transparency about the diverse nature of Nigeria’s oil production, encompassing both crude oil and condensate.

Kyari’s optimism about achieving the budget benchmark price despite market dynamics underscores the importance of adapting to fluctuating oil prices. The acknowledgment of challenges, including security concerns and force majeure, reflects a realistic assessment of the operating environment.

The commitment to maintaining dividends remittance and assuring the realization of projected dividends from the Nigeria Liquefied Natural Gas Ltd. aligns with financial responsibilities outlined in the Medium-Term Expenditure Framework.

Kyari’s comments on the Company’s Road Tax Credit Scheme emphasize the collaborative roles of different entities involved in the scheme, reinforcing the commitment to delivering value for funds allocated.

Overall, Kyari’s statements provide insights into the NNPC’s strategic outlook and its alignment with national budget projections. The interaction with the Senate Committee on Finance serves as a platform for transparency, addressing concerns, and fostering a shared understanding of the dynamics shaping Nigeria’s oil sector.

BD

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