We’ve reduced oil production cost to $23 per barrel – FG

The Federal Government on Thursday announced that the cost price of producing crude oil in the country has been reduced from $32 per barrel to $23 in the last four years.

According Sweetcrudereporters, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, stated this while speaking at the ongoing Nigeria Oil and Gas Opportunity Fair, NOGOF, organised by the Nigerian Content Development and Monitoring Board, NCDMB in Yenagoa, the Bayelsa State.

Kachikwu speaking on the achievements of his ministry in the last four years, mentioned Total’s Egina project, NNPC’s Ajaokuta-Kano-Kano gas pipeline project, the new 17 floors building headquarters of the NCDMB as well as his recent re-election as the President of the Africa Petroleum Producers Organization, APPO for the third time.

He also disclosed that plans are underway to achieve a 500 percent increase in gas production in the country from 1billion standard cubic feet of gas per day to 5billion standard cubic feet per day.

According to him, “On our achievements in the last four years, we have been able to cut down the cost of oil production from $32 per barrel to $23 per barrel.

“We have been able to increase production from 1.8 million barrels per day to 2 million barrels. We have also achieved the Egina project; the AKK gas pipeline project, amongst others.

“Plans are underway to achieve 500 percent increase in gas production in the country from 1billion standard cubic feet of gas per day to 5 billion standard cubic feet per day, as well as utilization of gas to drive the economy; we have settled the issue of cash calls arrears; and there is a real-time tracking of oil production in the country.”

Kachikwu also listed what is he described at the seven why’s and questions every stakeholder in the industry must think about.

According to him, “Why have we not been able to take over from the multinationals who have been around in the last 50years.

“Why are the oil producing communities still feeling disenfranchised and not taken along?

“Why have we not been able to achieve 4 million barrels per day, but only hovering around 1.8 million and 2 million barrels per day.

“Why are we infrastructure development shy. Why are we too comfortable in our present and too afraid to move to the future.”

“I challenge you that as you are here to deliberate on the opportunities in Nigeria’s oil and gas sector, you think about Nigeria, the future, the challenges and the seven why’s.”