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Energy

Nigeria has completely complied with OPEC obligations – NNPC GMD

The NNPC GMD has stated that Nigeria has fully complied with OPEC obligations.

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The Group Managing Director, NNPC, Mele Kyari clarified Nigeria’s oil production numbers during the oil cuts period, saying Nigeria’s oil production is between 1.6 million BPD and 1.7 million BPD and has fully complied with OPEC obligations. He cited that compliance needed to happen over a period of time.

Mele Kyari disclosed this in an interview with Channels TV on Monday evening. He stated that before the COVID-19 pandemic, Nigeria had reached its highest output in ten years, which was cut short by the effect of the pandemic on the market.

“…precisely last year, our production reached 2.4 million BPD, that did not happen in ten years, that means you also have to face what covid has put on the table, so you have to cut down production.”

“…today we are producing anywhere between 1.6 -1.7 million BPD,” he added.

On OPEC quota breaches

According to Mr Kyari, Nigeria needed time to meet its obligations and face some bottlenecks; however, the obligations have been fully met.

There is a distinction between what you can do immediately and what you can do over a period of time.  Sometimes we do have technical constraints that make it impossible to meet that quota. You may have seen through OPEC conversations that in some months we actually under-produced. Put in on balance, Nigeria has completely complied with our obligations to OPEC.”

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What you should know

Mr. Kyari also disclosed that NNPC will not operate and manage the Port Harcourt refinery upon completion of the $1.5 billion rehabilitation work, but rather a private-sector partner.

SSKOHN

This means that the NNPC will not operate this plant as a basic requirement of the financing institution. The financing partner will ensure that the contractor will work efficiently. Importantly, is that the contractor O&M gave a guarantee that the facility will operate for the duration of the loan and the fact is that the project will be done under a financing structure supported by Afreximbank,” he said.

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    Business News

    NNPC, SEEPCO sign gas development agreement for domestic market

    The execution of the deal is to help reduce gas flaring in the country and a show of NNPC’s commitment to facilitating the country’s transformation into a gas-powered economy.

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    The Nigerian National Petroleum Corporation (NNPC) and an indigenous oil exploration and production firm, Sterling Exploration and Energy Production Company (SEEPCO), both partners in the Oil Mining Lease (OML) 143, have signed a Gas Development Agreement (GDA).

    The execution of the deal is to help reduce gas flaring in the country and a show of NNPC’s commitment to facilitating the country’s transformation into a gas-powered economy.

    According to a tweet post from NNPC on their official Twitter handle, the agreement between both parties was signed at NNPC’s head office, NNPC towers, on Thursday, April 22, 2021.

    The statement says that this latest milestone provides the terms for the development of OML 143 Gas, providing gas for the domestic market which aligns perfectly with the Federal Government’s National Gas Expansion Programme (NGEP).

    What this means

    The execution of this project will not only help to support the Federal Government’s effort in reducing gas flaring by monetizing it but will also play its part in the government’s effort in the expansion of gas utilization in the country as a cleaner, cheaper and more reliable alternative form of energy.

    This is coming at a time when the Federal Government is shifting focus to gas utilization as an alternative source of energy especially with the increase in the retail pump price of petrol. This is one of the various initiatives by the government as represented by the NNPC towards providing alternative sources of energy.

     

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    Business

    NNPC says NO to petrol pump price hike in May

    There would be no increase in the ex-depot price of Premium Motor Spirit in the month of May 2021.

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    Crude oil market remains unpredictable- NNPC Boss
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    The Nigerian National Petroleum Corporation (NNPC) has assured Nigerians that there would be no increase in the ex-depot price of Premium Motor Spirit, popularly known as Petrol in May.

    This was disclosed by the Group Managing Director of NNPC, Mele Kyari, on Monday via the Corporation’s Twitter handle.

    It tweeted, “There would be no increase in the ex-depot price of Premium Motor Spirit in the month of May 2021.”

    Ex-depot price is the cost of petrol at depots, from where filling stations purchase the commodity before dispensing to final consumers.

    READ: Nigerian automaker raises $9 million despite protest against electric car in Nigeria

    Kyari also added that Petroleum Tanker Drivers had suspended their proposed strike after the intervention of NNPC in the impasse between the PTD and the National Association of Road Transport Owners.

    “We have given our commitment to both NARTO and PTD that we will resolve the underlining issue between them and come back to the table within a week so that we’ll have a total closure of the dispute,” he added.

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    READ: Oil marketers give conditions to resume fuel importation

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    What you should know

    • NNPC has maintained an ex-depot price of N148/litre since February despite the hike in the actual cost of the commodity, hence incurring subsidy of over N120bn monthly.
    • Also in March, the NNPC said it would maintain its ex-depot price for petrol until the conclusion of ongoing engagement with the organised labour and other stakeholders.

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