Home BUSINESS OIL & GAS $77.96 Oil Price Benchmark For 2024 Budget Realisable, NNPCL Boss Assures

$77.96 Oil Price Benchmark For 2024 Budget Realisable, NNPCL Boss Assures

The Group Chief Executive Officer of the
Nigerian National Petroleum Company Ltd. (NNPC Ltd.), Mele Kyari Kolo, has assured that the projections on crude oil production and price benchmark for the 2024 Budget are realistic and realizable.
Speaking at an interactive session with the Senate Committee on Finance at the National Assembly, Abuja today, December 13, 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.”
On the crude oil production projection, he said: “The number we have is 1.785mbpd. 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.”
He expressed optimism that though there are 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 Group Chief Executive Offer 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. is also realizable and would be flowed directly into the Federation Account as stipulated by the law.
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, the Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, said that 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 expressed satisfaction with the explanations offered by the NNPC Ltd.’s helmsman.

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