Nigeria’s crude oil daily production recorded an upward swing of about 2.09million barrels in 2018, translating to a 9percent increment, compared with the 2017 average daily production of 1.86million barrels, the Nigerian National Petroleum Corporation (NNPC) has said.
Compared against the low-level daily crude oil production in 2016, NNPC’s Group Managing Director, Dr. Maikanti Baru, said the nation had maintained a line of consistent year-on-year improvement.
For the crude oil increment and other milestones recorded in 2018, Dr. Baru, who made the submission in a comprehensive end of year message to staff of the corporation, touted the new business models put in place by his team in the national oil company’s old and new business entitles as reason for the improvements.
Baru singled out the Nigerian Petroleum Development Company (NPDC), the corporation’s upstream flagship company, as the major contributor to the industry’s success story in 2018, expressing enthusiasm on the 52percent daily crude oil production growth by the company when compared with its 2017 performance.
Dr. Baru in the end-of-year statement explained that the average production from NPDC’s operated assets alone grew from an average of 108,000 barrels of oil per day (bod) in 2017 to 165,000bod in 2018, describing the feat as the strongest production growth within the oil industry in recent times.
The GMD said NPDC’s equity production share which stands at 172,000bod, representing about 8percent of national daily production, was part of outcomes of initiatives he started among which, are the Asset Management Team (AMT) structure, Strategic Financing, Units Autonomy and security architecture framework
Of the industry milestones in 2018, Dr. Baru described as significant the 200,000bop addition which the Egina Floating Production Storage and Offloading (FPSO), added to the nation’s daily production, while disclosing that the project achieved First Oil at 11.20pm on 29th December, 2018.
Baru also disclosed a save of $1.7billion by NNPC, with corporation’s Joint Venture (JV) partners over a five-year tenor repayment plan, said already the corporation has defrayed $1.5billion of the arrears.
He said the NNPC would stick to the repayment agreement with the JV partners while transiting to self-funding IJV modes with the corporations partners. He added that better commitment to Cash Call issues has led to increased enthusiasm to invest in Nigerian oil and gas industry and boosted NNPC’s credit profile internationally.
In the frontier basins, Dr. Baru also revealed that NNPC has intensified explorations activities in the Benue Trough, with the expected spudding of Kolmani River Well 2 on 19th January, 2019.