Crude oil production, price benchmark for 2024 budget is achievable – NNPCL

The Nigerian National Petroleum Company Ltd. (NNPC Ltd.), the largest oil producer and supplier in Africa, has assured that the projected crude oil production and price benchmark for Nigeria’s 2024 budget is realistic and realizable.

In an interactive session with the Senate Committee on Finance in Abuja on Wednesday, the Group Chief Executive Officer (GCEO) of the company, Mr. Mele Kyari, maintained that the projections are achievable.

He explained that with the current dynamic and volatile nature of the market the proposed benchmark by “Mr. President around the $77.96 is still realisable in 2024.”

“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.

“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,” Persecond News quotes Kyari as saying.

The GCEO also assured that NNPC Ltd. will 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 Ltd. was also realizable and would flow directly into the Federation Account as stipulated by law.

Answering a question on the company’s road tax credit scheme, Kyari explained that all the roads being undertaken under the scheme would be duly completed.

“The scheme was anchored by the Ministry of Works while the Federal Inland Revenue Service and NNPC Ltd. were only playing supervisory roles to ensure that value is delivered for every kobo paid,” the NNPCL boss said.