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Business

NNPC calls for stakeholders’ support over slashing operation cost

NNPC called on stakeholders in the oil and gas industry to support in reducing operations costs.

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Crude oil market remains unpredictable- NNPC Boss

The Nigerian National Petroleum Corporation (NNPC) has called on stakeholders in the oil and gas industry to support in reducing operations costs to achieve the $10 or less per barrel production cost target.

This was disclosed by the Group General Manager, Group Public Affairs Division, NNPC, Dr. Kennie Obaterui in a statement seen by Nairametrics when shared via the corporation’s Twitter handle on Wednesday.

Obateru stated that the Group Managing Director of NNPC, Mallam Mele Kyari, made the call, Tuesday at the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP), which was held in Abuja.

READ: NNPC to declare dividend in 2020 despite Covid-19 pandemic

He explained that the current reality dictated by the global energy transition and demand erosion occasioned by the Covid-19 pandemic has made cost optimization imperative.

He said, “It is in our informed interest to optimize our cost of production. The realities of energy transition and investor choices are very much clear to us. There is nowhere in this world where a less cost-efficient operator can survive today.”

The NNPC boss tasked operators to adopt measures like transparency, collaboration, efficiency and shared services to help in driving down costs in order to meet the target.

READ: House of Reps Speaker assures that the PIB will be passed in April 2021

Mallam Kyari added that under the NNPC operational theme for the year known as ‘Execution Excellence’, the Corporation would achieve a contracting cycle of six months or less which would help create efficiency and drive down unit operating cost to sub $10 per barrel level.

Meanwhile, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said, “Engagement with industry stakeholders, under the NUCOP, is part of the resolve of this administration to confront this challenge of high production cost. I expect robust discussions and a realistic roadmap to achieve the cost optimization objectives.”

READ: FG will convert one million cars to gas at no cost – Minister

Why it matters

  • The average cost for Joint Venture production was below $30 per barrel while that of Production Sharing Contract (PSC) production was below $20 per barrel.
  • There was a need for cost optimization in order to keep the Oil and Gas Industry afloat in Nigeria.

What you should know: NUCOP is an industry-wide initiative designed to optimize Nigeria’s upstream operating expenses through process enhancement and industry collaboration to ensure improved and sustainable profitability for all stakeholders.

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Business

Covid-19: NPHCDA to train over 12,000 health workers to administer vaccines

The NPHCDA has revealed plans to train over 12,000 health workers to manage and administer the Covid-19 vaccines.

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109 million Nigerians to be vaccinated in 2 years - NPHCDA

The National Primary Health Care Development Agency (NPHCDA) has discsloed that it has built the capacity to train over 12,000 health workers to manage and administer the Covid-19 vaccines that will arrive in Nigeria soon.

The NPHCDA disclosed this in a social media statement on Thursday, adding that after the 2- day training, participants are expected to have improved knowledge and skill on handling, storage, distribution, administration and waste management of the COVID-19 vaccine.

“Also, improved knowledge and skill on micro-planning process, demand creation and mobilizing communities for COVID-19 vaccination,” it said.

“Finally, participants will be familiar with current practices in surveillance and management of AEFI for the COVID-19 vaccine and plans for monitoring, supervision and COVID-19 vaccine Post Introduction Evaluation,” it added.

What you should know 

  • Nairametrics reported last week that Dr. Faisal Shuaib stated that the first batch of the 4 million AstraZeneca vaccines is set to arrive Nigeria.
  • Faisal has also earlier stated that vaccine procurement by the Federal Government will also help boost Nigeria’s Primary Healthcare system.
  • The NPHCDA also revealed its plan to vaccinate 109 million Nigerians in 2 years.

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Business

Finance Minister says asset sales not primarily for budget financing

The Finance Minister has clarified that the reason for sales of government assets was more to revive them than it is for financing the budget.

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FG inaugurates steering committee on Covid-19 economic recovery, #EndSARS: FG creates new N25 billion Youth Fund, to increase to N75 billion in 3 years, taxes, tax, IMF, business, FAAC disbursed N617billions in April, as South-South scoop N72billions, VAT, Finance Minister, Zainab Ahmed says Nigeria VAT collection rate is low, NBC, Rite Foods, others to pay new tax as FG identifies new revenue streams ,,Finance Minister reveals how World Bank, AfDB pushed FG into requesting Chinese loan 

The Minister of Finance, Zainab Ahmed, has stated that the sale of national assets is not necessarily for budget financing, adding that some dead or non-performing assets will be sold to credible investors who can revive them.

The Minister disclosed this at the maiden edition of the State House briefing on Thursday at the State House, which was focused on the economy and economic recovery.

“The Nigerian Government recorded a 97% budget performance.

“Every year we have provisions for sale of FGN assets. 2021 is not different. There is a Bureau of Public Enterprises (BPE) workplan for this. Assets that are dead or non-performing will be sold to credible investors who can revive them. Asset sales are not primarily for budget financing,” Ahmed stated.

The Minister also said that Nigeria’s debt was still very much within sustainable limits and that the FG needed to “roll out infrastructure now, and grow the economy now, not later. Our focus is on growing our revenues.”

What you should know 

  • Recall Nairametrics reported recently that the Finance Minister had announced that the Federal Government said the Finance Bill 2020 was designed to reduce import duties on some commodities, including vehicles, thereby checking inflation.
  • Premium Times released an exclusive report stating that the FG proposed to sell or concession no fewer than 36 of its properties to raise funds, largely to finance the 2021 budget.
  • The assets include the Abuja Environmental Protection Board (AEPB), the Abuja International Conference Centre (ICC), some unnamed refineries, the Transmission Company of Nigeria (TCN), Abuja Water Board, Nigerian Film Corporation, and many others.

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