Nigeria oil firm saved $2bn by renegotiating contracts
04 Jul 2017 - 23:33
Nigeria: Nigeria’s state oil company has saved $2bn in the past year by renegotiating its upstream servicing contracts, it said yesterday, as it tries to reduce high overheads.
The Nigerian National Petroleum Corporation (NNPC) is attempting to revive the oil industry on which the country’s economy depends, and which the government relies on for roughly two-thirds of its revenue.Militant attacks on oil facilities last year cut production by as much as a third, helping push the economy into its first recession in a quarter of a century.
“For the upstream, cost reduction and efficiency are key features that we will pay attention to,” said Maikanti Baru, who heads the NNPC, in the statement.
The company has also cut operating costs for oil production to $22 a barrel from $27 per barrel, Baru said.Average daily production of oil and condensates has been about 1.88 million barrels since the beginning of the year, with the Forcados and Qua Iboe terminals running again after being taken down by attacks last year, he said.
That puts Nigeria on target to exceed its 2017 goal of producing an average of 2.2 million barrels of oil and condensate a day, Baru said.Militant attacks crippled Nigeria’s oil production in 2016.