Urges collaboration to reduce crude oil production cost
Admin l Thursday, July 25, 2019
ABUJA, Nigeria – As part of efforts to grow local refining capacity, the Nigerian National Petroleum Corporation (NNPC) has called for collaboration with Chevron Nigeria Limited to establish a condensate splinter refinery.
The appeal was made Thursday by the Group Managing Director of NNPC, Mallam Mele Kyari, when the management of Chevron Nigeria Limited (CNL) was led by its Managing Director, Jeff Ewing, on a business visit to the NNPC Towers, Abuja.
A press release by the NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, quoted the GMD as saying that setting up refineries to end the shame of fuel importation was not just a responsibility for NNPC alone, but also for its Joint Venture partners.
The GMD also urged CNL to work closely with the corporation to evolve modalities for a downward review of the cost structure of crude oil production in Nigeria in order to boost profit and revenue for the country.
“We hold Chevron Nigeria Limited (CNL) in a very high esteem for her efficiency and cost optimization. We look more up to the company to increase production and reserve, reduce cost and increase local refining capacity”, Mallam Kyari stated.
On cash call, he said NNPC had done very well in meeting its financial obligations to the company in the last three years, adding that the move was expected to boost the confidence of JV partners to commit to further investment in the upstream.
He urged the company to further collaborate with NNPC to increase crude oil production and grow reserves in the country, stressing that NNPC was ready to work with Chevron to ensure that the Final Investment Decision (FID) on NLNG Train 7 was taken soonest for the benefits of all the investors.
He said efforts were on top gear by the government and security agencies to secure all the oil and gas pipelines across the country, assuring that the reinvigorated security architecture would provide safe working environment for all operators.
Speaking earlier, Managing Director of CNL, Mr. Jeff Ewing, said his company was prepared to work with the new management of NNPC to grow production.
He applauded the NNPC for the prompt payment of the cash calls arrears, noting that the gesture has further bolstered the activities of the rigs and the entire operations of the company.
