By Hosea Parah, Abuja
The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has affirmed that the projections for crude oil production and price benchmark in the 2024 Budget are both realistic and attainable. This assurance was given by Mr. Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, during an interactive session with the Senate Committee on Finance at the National Assembly on Wednesday.
Mr. Kyari addressed concerns about the market dynamics and the projected budget benchmark price of $77.96 per barrel. He stated, “With the current market trends and the foreseeable future, it is highly unlikely to witness $70 per barrel oil. The fluctuations we observe, where prices sometimes drop to $75 per barrel and sometimes exceed it, indicate that benchmarks are averages. We believe that the proposed benchmark of $77.96 by Mr. President is still achievable in 2024.”
Regarding the projection for crude oil production, Mr. Kyari clarified, “The figure we have is 1.785 million barrels per day (mbpd), which includes all oil produced in the country, including crude oil and condensate. It is essential to note this clarification because there have been media reports stating that our OPEC quota is 1.5 million barrels per day. The OPEC quota only pertains to crude oil. In addition to crude oil, we also produce between 250,000 to 300,000 barrels per day of condensate. When combined, the figure of 1.785 mbpd is both realistic and achievable.”
Despite challenges such as security issues and force majeure, Mr. Kyari expressed optimism that the measures implemented by the Federal Government would effectively address these concerns and ensure the projected level of production.
Furthermore, the GCEO assured that NNPC Ltd. will maintain the level of dividends remittance to the Federation Account as stated in the Medium-Term Expenditure Framework. He added that the projected dividends from the Nigeria Liquefied Natural Gas Ltd. are also attainable and will be directly deposited into the Federation Account in accordance with the law.
During the interactive session, Mr. Kyari also provided insights into the Company’s Road Tax Credit Scheme. He clarified that all road projects under the scheme would be thoroughly completed. The scheme is overseen by the Ministry of Works, with the Federal Inland Revenue Service and NNPC Ltd. playing supervisory roles to ensure that every payment made delivers value as expected.
In response to the session, Senator Mohammed Sani Musa, Chairman of the Senate Committee on Finance, expressed satisfaction with the explanations provided by NNPC Ltd.’s GCEO. The purpose of the interactive session was to facilitate in-depth discussions on the projections in the 2024 Appropriation Bill, aiding lawmakers in determining necessary adjustments.
The NNPC’s commitment to realistic projections and its assurance of maintaining dividends remittance reflect its dedication to transparency and accountability in the Nigerian oil and gas sector.