The Minister of State for Petroleum Resources, His Excellency, Chief Timipre Silva, on Tuesday launched the Nigerian Upstream Cost Optimization Programme in Abuja, the country’s capital.
The event was hosted by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kolo Kyari.
The HMSPR @HETimipreSylva will in a short while launch the Nigerian Upstream Cost Optimisation Programme (#NUCOP), at the #NNPCTowers, #Abuja.#NUCOP#TAPE #ExecutionExcellence
Follow live proceedings via this link 👇https://t.co/UIfatownqw pic.twitter.com/ePnUiheLFN
— NNPC Limited (@nnpclimited) February 9, 2021
According to the Minister, the engagement with industry stakeholders under the #NUCOP, is part of the resolve of the Nigerian Government to confront the challenge of high production cost.
“I must emphasize that achieving cost reduction is also enhanced by delivering on our growth aspirations of 40bbl of oil reserves and 3mbpd of oil production,” Timipre Sylva noted.
HMSPR at #NUCOPLaunch:
"Currently,the average total cost per barrel is below $30/barrel for Joint Venture (JV) agreements & below $20/barrel for the Production Sharing Contract (PSC). We need to optimise our unit cost of production in order to sustain our way of doing business" pic.twitter.com/5QwU45CXYG
— NNPC Limited (@nnpclimited) February 9, 2021
Also speaking at the launch, the NNPC Boss, Mallam Mele Kolo Kyari, observed that there is nowhere in the world where a less cost efficient operator can survive, hence the need to optimize cost of production.
“We are leveraging this laudable initiative of #NUCOPLaunch on the background of the directive of the Federal Government to the HMSPR, which mandated that we must cut down on the cost of production,” said @MKKyari.
GMD @MKKyari at #NUCOPLaunch:
"I am convinced that with the successful implementation & #ExecutionExcellence of #NUCOP, the #Nigerian Oil Industry will achieve a contracting cycle of 6 months or less & a UOC of sub $10/b, thus making us more efficient, sustainable & competitive" pic.twitter.com/2pCmBtbtEE
— NNPC Limited (@nnpclimited) February 9, 2021
Amaka E. Nliam