By Gift Olivia Samuel, The Sight News
Abuja: The Nigerian National Petroleum Corporation(NNPC), has disclosed that its outlook for 2018 and beyond is to increase crude oil reserves by 1billion barrels Year-on-Year from the current 37billion barrels to 40billion barrels by 2020.
The Sight News gathered that the Corporation is also targeting to increase national oil daily production to 3Million barrels per day.
The Group Managing Director, NNPC, Dr. Maikanti Baru, who made the disclosure in his keynote address at the Nigeria Oil and Gas Conference(NOG) 2018, noted that for NNPC’s upstream subsidiary – The Nigerian Petroleum Development Company (NPDC), the plan is to grow its production to 500,000bopd of oil and 1.5Bscfd of gas by 2020.
The GMD who spoke on the topic, “Outlining NNPC’s Plans and Priorities”, said it is a vital component of this year’s event titled “Driving Nigeria’s Oil & Gas Industry towards Sustained Economic Development and Growth”.
According to him, “As NNPC, re-calibrating our focus has become imperative following the turbulence experienced in the crude oil price cycle, supply driven glut in the oil market, world economic growth, the uncertainties regarding the future of oil, the fiscal imbalance experienced by OPEC member.
“In 2017 alone, we signed about $2.5Billion alternative funding arrangements for NNPC/SPDC JV ($1Billion)- Project Santolina; NNPC/CNL JV ($780Million)- Project Falcon; and NNPC/First E&P JV and Schlumberger ($700Million).
“These three funding arrangements are expected to increase combined production of crude oil and condensate by 150,000bopd and 618MMscfd of gas with a combined Government-take of about $32Billion over the life of the projects”, he said.
The GMD stated also, that the Corporation is committed to executing a model that encapsulates domestic linkages into upstream oil and gas development with the attendant multiplier effect on the Nation’s economy at the lowest possible cost, adding that continuous cost reduction and profit maximization is central to sustenance of the industry.
Furthermore, Baru said that there are plans to be in the Capital market to raise more finance for new oil and gas projects such as the NNPC/NAOC JV Idu-Redevelopment, South Gas Project, North Gas Project and Central Gas Project. NNPC/TEPNG JV’s Ikike Project, NNPC/SPDC JV Southern Swamp and Associated Gas Solution Step 2 Project amongst a host of other new projects.
While noting that the domestic demand for gas is expected to grow exponentially to about 7,500mmscfd in the next five years, he stated that, “Within the next three (3) years, with our Joint Venture partners, we are committed to increasing natural gas availability from the current 1.5bscf/d to about five billion standard cubic feet per day in 2020.
“Consequently, the government will supply enough gas to generate up to 15GW of electricity to the power sector by 2020 and stimulate gas-based industrialization”.
He added that to remain globally competitive,efforts have to be put in place to achieve improved collaboration with local communities, States, Local Governments and relevant Agencies; Improved Security and Safety of personnel and infrastructure; Improved Transparency and Accountability;
Others are; Improved Human Capital Development; Optimization of the non-core oil businesses; Gradual transition from an Integrated oil and gas company to an Energy Company and Overall reduction in unit cost of production and improved efficiency in operations.