ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Monday, March 1, 2021
Premium Times Nigeria
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
NNPC TOWERS

NNPC TOWERS

Nigeria saves 72% cost in deep offshore rig-rate — NNPC

byPremium Times
February 24, 2017
2 min read
ADVERTISEMENT

The Nigerian National Petroleum Corporation, NNPC, has successfully renegotiated the cost of its deep offshore rig-rate downwards by about 71.7 per cent.

The Group Managing Director of the corporation, Maikanti Baru, said Nigeria was saved the huge burden of the cost of operation in the difficult terrain from the previous charge of about $580,000 to about $164,000 per day.
Mr. Baru, who was speaking in Lagos at the 14th Annual Aret Adams Memorial Lecture, said similarly, the NNPC achieved a 35 per cent downward review of rig rates per day for both swamp and land operations in its portfolios.
A rig rate is a major cost component incurred by an exploration and production company in carrying out drilling operations for oil and gas in deep offshore, shallow offshore, swamp, land areas or basins.

Mr. Baru, who was represented on the occasion by the Chief Operating Officer, Gas & Power, Saidu Mohammed, said these reductions were also effected in NNPC’s unit technical cost, UTC, over the period.

The various reductions, he said, served as incentive for investors to grow reserves, increase profitability and improve return on investment, apart from boosting government revenue and improving government’s commitment to developmental projects across the country.

“I am proud to announce that our UTC has significantly dropped from above $70 per barrel in 2014, to about $27 per barrel, as at year end 2016,” Mr. Baru said. “Indeed, NNPC is committed to further drive down the UTC.”

With a savings of about $43 per barrel per day, this translates to a cost reduction of about N31.4 billion on crude oil production every year.

The NNPC GMD, whose lecture was titled: “Find More, Produce More” at the one-day event, solicited the support of all industry players to achieve the goals and aspirations of the country in the oil and gas industry.

He said there was an urgent need to link the industry with other sectors of the Nigerian economy, pointing out that although the increased oil production involved the cost factor and the commodity price, the NNPC had produced oil within the year with much efficiency.

“Price may not be readily under our control at the moment, but we need to manage cost of production within the Industry. Within the period, we took over the reign of leadership in the Corporation, we have been able to drive down cost to a very commendable level,” Mr. Baru said.

RelatedNews

Blood On Uniforms (1): Inside extra-judicial killings by police officers enforcing COVID-19 lockdown

VIDEO: Nigeria to receive COVID-19 vaccines Tuesday – Official

VIDEO: How bandits terrorised Kagara for years before students abduction

VIDEO: What Bawa told Senate about himself

To achieve government’s aspiration of 40 billion barrels of crude oil reserves and a production of four million barrels per day by 2020, the GMD explained that the country needed an incremental production of at least one billion barrels in reserves year-on-year till 2020.

He said at a minimum, the country requires about half a million barrels in incremental production capacity per day within the same timeframe to realize the target.

“Considering our quest for revenue generation as a nation, it is a given that we need to increase our exploration efforts in order to sustain our reserve base and grow production,” he noted.

Dangote adbanner 728x90_2 (1)

He charged industry players to invest in exploration activities, especially now that crude oil price was low “so that when the tide turns, all we would need to do is to turn on the taps.”

Mr. Baru said NNPC would continue to make investments geared towards increasing the national hydrocarbon reserves and daily crude oil and gas production, adding that the Corporation was committed to propelling power, industrial and agricultural sectors through an adequate provision of gas-to-power and sustainable feedstock to fertilizer and petrochemical industries.

Chairman of the occasion and former Minister of State for Petroleum, Odein Ajumogobia, said there was no better time to discuss increased oil production capacity than now.

Chairman of the Aret Adams Foundation, Egbert Imomoh, said Nigeria should position itself for the future by finding more oil and producing more of the commodity to earn more revenue for the country.

This year’s Aret Adams Annual Lecture Series, which was the 14th, seeking to immortalize the ideals of Godwin Aret Adams who was the former GMD of NNPC, and one-time Adviser on Petroleum Resources to the Head of State, Abdulsalami Abubakar between 2008 and 2009. Adams died 15 years ago.

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...


JOIN THE CONVERSATION

  • Disqus (1)
premiumtimes



PT Mag Campaign AD

Previous Post

5G ‘lightning fast’ internet to be unveiled by 2020

Next Post

Two to die by hanging for killing government surveyor

Premium Times

Premium Times

More News

Dangote refinery

Dangote Refinery to sell refined crude in naira – Emefiele

February 28, 2021
Members of the board of NASCON.

Salt maker NASCON posts biggest profit jump in three years as cost falls

February 27, 2021
Naira notes used to illustrate market trading

Naira crosses three-month mark in parallel market fall

February 26, 2021
Vice President Yemi Osinbajo speaking at the ministerial retreat[PHOTO CREDIT: @ProfOsinbajo]

Osinbajo opposes cryptocurrency ban

February 26, 2021
Minister of Finance, Zainab Ahmed 1

Unifying Naira’s exchange rate will take time, Nigerian Govt tells World Bank

February 25, 2021
Oando-PLC [Photo Credit: www.oandoplc.com]

SEC speaks on court order nullifying Oando’s AGM ban

February 25, 2021
Next Post
Hanging rope [Photo credit: crimefeed.com]

Two to die by hanging for killing government surveyor

We need to urgently correct things that went wrong, Osinbajo says after unscheduled airport visit

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


NITDA Ad





Glo Ad

Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,626,466 other subscribers.

Advertisement






netherland biz school Advert

Zenith Advert
ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.