The Nigerian National Petroleum Corporation (NNPC) has secured $2bn discount from renegotiated upstream contracts being executed by its various service providers in the last one year.
The Group Managing Director of the Corporation, Dr. Maikanti Baru made the disclosure in Abuja on Wednesday in a message to mark his one year in office.
He explained that the discount was raised as part of the quest to continually drive down the high cost of production in Nigeria’s oil industry.
Dr. Baru said that the Corporation had successfully reduced the cost of producing a barrel of crude oil from $27 per barrel to $22 per barrel.
In the upstream segment of the sector, he noted that cost reduction and efficiency were key features that the NNPC would focus its attention on.
The NNPC boss revealed that there had been a significant increase in crude oil reserves and production, putting the average national daily production at 1.83 million barrels of oil and condensate.