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Business and Economy

Nigeria Cuts Crude Oil Production Cost To $23/Barrel

oil prices

In Nigeria

The Nigerian National Petroleum Corporation has said that the country has saved a minimum of $3billion per annum by cutting the cost of crude oil production from $78 dollars per barrel to $23 per barrel as at August 2015, representing 70.5 per cent reduction.

A statement issued by the Corporation’s spokesperson, Ndu Ughamadu, noted that NAPIMS arrived at the figure after looking at the difference between the $78 and $23 which represent the old and new cost of production in relation to the present daily average production in the country.

According to a statement credited to him; “If you knock down your cost of production from $78 per barrel to $23, take the difference and multiply by the average daily production, you will discover that we are saving a minimum of $3billion in the upstream for both Production Sharing Contracts (PSCs) and Joint Ventures (JVs).”

The CGM also expressed confidence on the Petroleum Industry Bill before the Nigerian house of senate when he said: “the policy would restore investors’ confidence in the industry pending the full passage of the entire PIB by the National Assembly.”