The Nigerian National Petroleum Corporation (NNPC) on Wednesday unveiled plans to focus more on increasing gas and condensate production as a strategic step towards boosting its revenue earnings in the months ahead.
The move by the state-owned oil corporation to explore the gas and condensate resources option was sequel to the cut of Nigeria’s oil production to 1.74 million barrels per day by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
The Corporation’s Group Managing Director, Mallam Mele Kyari who gave this hint during the ongoing virtual Gulf Intelligence “Global” UAE Energy Forum 2021, maintained that Nigeria’s commitment to abide by the output cut agreement of the OPEC and its allies in order to mitigate the risks associated with the volatility of international oil prices.
A statement by the NNPC’s spokesman, Dr. Kennie Obateru, quoted the corporation’s GMD as saying that despite the negative effects of the production cut on government revenue, tapping into the gas and condensate resources was the best step towards ensuring improved revenue for the country at the global market.
Kyari, who spoke on the topic, “Outlook for Africa/Nigeria’s Oil & Gas Sector in Post-Covid Era”, said corporation was hopeful that by the end of the year, demand for crude oil would rise, thereby brightening prospects for a marginal increase in output.
According to him, gas remains a reliable revenue source at the peak of the Covid-19 pandemic in 2020, thereby making gas production and utilization a key priority for the corporation in its operations this year.
Earlier in his remarks at the forum, the Minister of Energy & Agriculture, United Arab Emirates (UAE), Eng. Suhail Mohamed Al Mazrouei, urged oil producing countries not to flood the market with crude oil.
He hinged his appeal on the fact that the UAE was currently more concerned about balancing the market forces of demand and supply in the global market than growing her market share.