The Nigerian National Petroleum Company Limited (NNPCL) on Wednesday told lawmakers in the National Assembly that the projections on crude oil production and price benchmark used for the 2024 budget computation were realizable.
The Group Chief Executive Officer (GCEO) of the company, Mr. Mele Kyari, gave the assurance on Wednesday during an interactive session with the Senate Committee on Finance at the National Assembly, Abuja.
A statement issued by the company’s Chief Corporate Communications Officer, Olufemi Soneye, quoted Kyari as telling the lawmakers in the Senate on the dynamics of the market in relation to the projected budget benchmark price of $77.96 per barrel, that “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.”
On the crude oil production projection, the GCEO further clarified: “The number we have is 1.785mbpd. This is cumulative of all oil produced in the country. This figure is inclusive of all production including crude oil and condensate. 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 1.78mbpd is realistic and realisable.”
Kyari expressed optimism that though the insecurity and force majeure challenges in the industry subsisted, the measures being deployed by the Federal Government would help in finding solutions to them in order to achieve the projected level of production.
In addition, the industry expert assured that the state-owned oil company would 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 Limited (NLNG) is also realizable and will be flowed directly into the Federation Account as stipulated by the law.
While answering a question on the company’s Road Tax Credit Scheme, Kyari explained that all the roads being constructed under the scheme would be duly completed, adding that the scheme is anchored by the Ministry of Works while the Federal Inland Revenue Service and NNPCL were only playing supervisory roles to ensure that value is delivered for every kobo paid.
Speaking earlier, the Chairman of the Senate Committee on Finance, Sen. Mohammed Sani Musa, said the purpose of the interactive session was to deepen conversations on the projections in the 2024 Appropriation Bill to help the lawmakers determine what and where to adjust.
