The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has provided a reassuring stance on the projections for crude oil production and the price benchmark set for the 2024 Budget, emphasizing their realism and feasibility.
This affirmation came during an engaging session with the Senate Committee on Finance at the National Assembly in Abuja on Wednesday, December 13. Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, conveyed the company’s commitment to ensuring that the projected figures align with practical expectations.
Speaking on the dynamics of the market in relation to 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.”
On the crude oil production projection, he stated: “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.”
Kyari 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 was also realizable and would be flowed directly into the Federation Account as stipulated by the law.