- The Nigerian National Petroleum Corporation (NNPC) through its group managing director, Maikanti Baru, said that it has reduced the cost of the production of a barrel of crude oil to N7,200
- Baru said that the reduction in the cost of crude oil production will increase the federal government's revenue
- He said the corporation is presently training Nigerians who will take over the country's refineries when they are fully rehabilitated
The Nigerian National Petroleum Corporation (NNPC) on Monday, March 5, said that it has reduced the cost of producing a barrel of crude oil to N7,200.
In a statement made by the corporation it said: “Additional measures have been put in place to further reduce the cost to $15 per barrel.”
The corporation, through its group managing director, Maikanti Baru, also disclosed in a science fair in Abuja, that it had signed four Memoranda of Understanding (MOU) with state governments for the production of biofuel to further increase the volume of petrol being supplied throughout the nation, Premium Times reports.
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Represented by the NNPC’s chief operating officer, gas and power, Mohammed Seidu, Baru pointed out that the reduction in crude production cost would bring about an increase in the federal government’s revenue.
Baru said: “What the NNPC will like Nigerians to know is the drive we are making to bring down the cost of producing oil.
“The more we bring down the production cost of oil and gas, the more money that comes eventually to the federal government and the pockets of the state and local governments.
“We have been innovative in our work to bring down the cost. Many Nigerians don’t even know that we started the local content drive. We have brought down the cost of producing a barrel of oil today to the neighbourhood of $20 and our target is to make sure we are at $15, and we continue to march forward.”
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Concerning the production of biofuel, Baru stated that apart from crude oil and gas production, the oil firm is also talking much about “other fuels”.
He said: “There is little that people know, that we are not only propagating oil and gas, but we also make sure that we promote biofuels and other more efficient fuels in the country.
“What we have done today is to sit down in the driver’s seat, not necessarily as the investor, but to make sure that the people that are coming in are on board. Today, we have signed four MoUs with state governments to roll out initiatives around the biofuels.”
He also disclosed that the corporation is presently making efforts to train Nigerians who would take over the operations of the country’s refineries when they are completely repaired.
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Source: Naija.ng