The Nigerian National Petroleum Company Limited (NNPCL) has unequivocally rejected attempts by the Senate to raise President Bola Ahmed Tinubu’s crude oil production benchmark in the 2024 Appropriation Bill from 1.78 million barrels per day (mbpd) to 1.8 mbpd.
In a compelling interactive session with the Senate Committee on Appropriations in Abuja on Friday, the Group Chief Executive Officer of NNPCL, Mele Kyari, staunchly opposed the proposal put forth by Senator Solomon Adeola (APC – Ogun West), the Chairman of the Committee.
While the Federal Government had initially set the average crude oil production at 1.78 mbpd and a crude oil price benchmark of $77.96 for the 2024 fiscal year, Kyari urged the committee to adhere to the benchmarks proposed by President Tinubu in the 2024 Appropriation Bill.
Breaking: Presisident Tinubu’s Minister Dumps Party
Tinubu Makes Nine New Appointments: See Full List
Kyari underscored that the benchmarks were formulated considering the dynamic nature of the global oil market, emphasizing the realism and achievability of the oil component in the budget projections. He insisted that the country’s current average production of 1.5 million barrels per day doesn’t undermine the proposed benchmarks.
“In terms of production, we mean total production of crude oil and condensates. So we combine condensates and crude oil as total marginal production. Our estimates are realistic. There is no curtailment on condensates from OPEC,” Kyari asserted.
However, he warned that security challenges in the Niger Delta Region, particularly crude oil theft and illegal bunkering, could pose significant hurdles to achieving the Federal Government’s projections.
“The situation we have in the Niger Delta in terms of security is a calamity. We don’t have that anywhere in the world. To engage non-state actors as a last resort as a solution is abnormal. But we have to respond abnormally,” Kyari stated.
He disclosed that there are over 4,800 illegal connections on crude oil pipelines in the Niger Delta, emphasizing the colossal damage to the environment and host communities.
On the issue of refinery maintenance, Kyari provided an update, indicating that the Port Harcourt refinery is expected to be operational by December 2023, the Warri Refinery in the first quarter of 2024, and the Kaduna Refinery by December 2024.
While addressing the concerns raised by Senators regarding the N406 billion dividend to the Federation Account between July and November from NNPCL, the lawmakers expressed dissatisfaction, urging the oil giant to strive to emulate global peers like Saudi Aramco and Petrobras of Brazil.
Stay informed with Ejes Gist News – Your Source for Credible News in Nigeria Now.
