Dr. Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) says Saudi Arabia recent decision to announce daily crude oil production cut by one million barrels per day from December this year would help stabilise the market.
Dr Baru said this while speaking at a Global Business Leaders Panel Session on the sidelines of the 21st Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), held in Abu Dhabi. He commended Saudi’s gesture and emphasised that the move would significantly stabilize the energy market.
Baru said that given Nigeria’s production constraints, it is important that oil price does not fall below $70.
“We need price stability and we want to acknowledge the good gesture by Saudi Arabia,” the Nigerian state oil firm chief said.
Dr. Baru disclosed at the panel discussion that NNPC would deploy cutting-edge technology to enhance its operations and maximize value across its business value-chain.
He shared NNPC’s drive to use technology to deliver Nigeria’s future energy needs in line with anticipated global demand and population growth.
“In terms of refining, digital technology will help us get more out of our crude which will mean getting the highest yield from our plants. We also need to utilize digital technology from the contracting end which will lead to improved designs in constructions thereby reducing cost and time,” Baru said.
According to him, while crude oil is projected to grow at a declining rate by 2040 favouring growth in natural gas, renewable energy in the longer term would account for 40percent of increase in total energy demand by the same year.
Dr. Baru said in its efforts to survive in the long run, NNPC would require strong investment and commitment to technological research and development.
He said as the industry grows, International Oil Companies (IOCs) and National Oil Companies (NOCs) must be ready to embrace new technological initiatives as a means of offsetting expense escalation and furthering the cost and efficiency improvements they have already achieved.
The ADIPEC is an annual global oil and gas event where latest innovations and technologies in the global industry are showcased.
This year’s edition, which was held under the theme “shaping the future of the world’s oil and gas industry,” was attended by a record 110,000 oil and gas professionals from across the world.