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- There are concerns that Nigerian revenue will decrease in 2024 as oil prices drop below the budget benchmark
- NNPC Limited has come out to reassure Nigerians about the projections for crude oil production
- Mele Kyari also stated that NNPC Limited will maintain the level of dividends remitted to the federation account
he Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has assured that the projections for crude oil production and the price benchmark in the 2024 Budget are realistic and achievable.
Mele Kyari, the Group Chief Executive Officer (GCEO) of the company, provided this assurance during an interactive session with the Senate Committee on Finance.
Photo credit: NNPC
Source: Getty Images
Speaking on the dynamics of the market in relation to the projected budget benchmark price of $77.96 per barrel.
Kyari said:
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“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.”
Kyari speaks on future plans
Furthermore, in a statement signed by Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd, Kyari mentioned that the projected crude oil production at 1.785mbpd encompasses the cumulative output of all oil produced in the country.
He expressed optimism that despite challenges like security issues and force majeure, the measures being deployed by the Federal Government would effectively address these concerns, ensuring the attainment of the projected production levels.
He added
“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.”
The GCEO also assured that NNPC Ltd. would 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.
“No More N610/L:” Nigerians brace for fuel price reduction as petrol vessels arrive at ports
Legit.ng reported that oil marketers stated on Saturday, November 18, 20023, that the price of petrol may drop across filling stations owned by independent marketers this week following the imports of PMS by the Nigerian Independent Petroleum Company Limited (NNPCL).
Feelers show that the recent hike in petrol prices at outlets owned by independent marketers was due to the short supply of the product, leading to profiteering by depot owners and filling stations.
Source: Legit.ng
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