July 21, 2024

NNPC Ltd. confirms 1.785mbpd crude oil production, $77.96pd price benchmarks for 2024 budget achievable

Mele Kyari, GCEO, NNPCL


…Kyari pledges to maintain level of dividends projected in MTEF


Oredola Adeola


The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has assured that the projections of 1.785mbpd crude oil production and price of $77.96 per barrel benchmark for the 2024 Budget presented by President Bola Tinubu were realistic and realizable.


Mele Kyari, Group Chief Executive Officer (GCEO) of the Company, Mr. gave the assurance during an interactive session with the Senate Committee on Finance at the National Assembly, Abuja, on Wednesday.


Speaking on the dynamics of the market about the projected budget benchmark price of $77.96 per barrel, Kyari said: “With what we see in the market today and potentially in the year 2024 and even beyond the next two years, it is very unlikely to see $70 per barrel oil in the market.


“The oscillation we are seeing, sometimes you do see prices coming down to $75 to the barrel and sometimes it goes above it, overall, benchmarks are averages.


“We think that the proposal by Mr. President around the $77.96 is still realisable in 2024,” Kyari stated.


Commenting on the crude oil production projection in the appropriation bill, the NNPCL GCEO said, “The number we have is 1.785mbpd.”


He said, “This is cumulative of all oil produced in the country.


“This figure is inclusive of all production including crude oil and condensate. I need to make this clarification because of the reports in the media that our OPEC quota is 1.5million barrels per day.



“The OPEC quota is related only to crude oil. We also do between 250,000 to 300,000 barrels per day of condensate in our production. When you combine the two, the 1.78mbpd is realistic and realisable,” the GCEO said.


Kyari further expressed optimism that though there were challenges such as security and force majeure, the measures being deployed by the Federal Government would be able to take care of them to guarantee the projected level of production.


The GCEO also assured that NNPC Ltd. will maintain the level of dividends remittance to the Federation Account as stated in the Medium-Term Expenditure Framework, adding that the projected dividends from the Nigeria Liquefied Natural Gas Ltd. were also realizable and would flow directly into the Federation Account as stipulated by the law.



EnergyDay gathered that President Tinubu’s administration is expecting dividends from NLNG, Bank of Industry, Development Bank of Nigeria, Galaxy Backbone, and Bank of Agriculture, with projections at N357.92bn.


While answering a question on the Company’s Road Tax Credit Scheme, Kyari explained that all the roads being undertaken under the scheme would be duly completed, adding that the scheme was anchored by the Ministry of Works while the Federal Inland Revenue Service and NNPC Ltd. were only playing supervisory roles to ensure that value is delivered for every kobo paid.


Earlier, Senator Mohammed Musa, Chairman of the Senate Committee on Finance, said the purpose of the interactive session was to deepen conversations on the projections in the 2024 Appropriation Bill to help the lawmakers determine what and where to adjust.


He therefore expressed satisfaction with the explanations offered by the NNPC Ltd.’s helmsman.