NNPCL Group Chief Executive Officer, Mr Mele Kyari, gave the assurance during an interactive session with the Senate Committee on Finance at the National Assembly, Abuja, on Wednesday.
In a statement signed by the Chief Corporate Communications Officer of the NNPCL, Mr Olufemi O. Soneye, Kyari said it was unlikely for market prices to drop to 70 dollars per barrel in the market, adding however, that prices could oscillate.
“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. We think that the proposal by Mr. President around the $77.96 is still realisable in 2024.”
On the crude oil production projection, he stated, “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 1.5 million 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.”
The NNPCL Chief expressed optimism that although there were challenges such as security and force majeure, measures being deployed by the Federal Government would take care of them, to guarantee the projected level of production.
Kyari also gave the assurance that NNPCL will maintain the level of dividends remittance to the Federation Account as stated in the Medium-Term Expenditure Framework and that the projected dividends from the Nigeria Liquefied Natural Gas Ltd. was also realizable and would be made to flow directly into the Federation Account, as stipulated by the law.
Responding to questions on the Company’s Road Tax Credit Scheme, he explained that all the roads being undertaken under the scheme would be duly completed, adding that the scheme was anchored by the Ministry of Works with the Federal Inland Revenue Service and NNPCL only playing supervisory roles to ensure that value is delivered “for every kobo paid”.
Speaking earlier, the Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, while expressing satisfaction with the explanations offered by the NNPCL GCEO, said the purpose of the interactive session was to deepen conversations on projections in the 2024 Appropriation Bill, to help lawmakers determine what and where to adjust.
