Abuja, Nigeria – In an interactive session with the Senate Committee on Finance at the National Assembly on Wednesday, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Ltd. (NNPC Ltd.), Mr. Mele Kyari, affirmed the realism and achievability of the projections on crude oil production and the price benchmark outlined in the 2024 Budget.
Addressing the Senate Committee, Kyari emphasized the practicality of the proposed budget benchmark price of $77.96 per barrel. He stated, “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.” He clarified that market dynamics and fluctuations are common, and the overall benchmark remains achievable.
Regarding crude oil production projections, Kyari clarified that the cumulative figure of 1.785 million barrels per day (mbpd) includes both crude oil and condensate. He highlighted that the OPEC quota of 1.5 mbpd is applicable only to crude oil, and when condensate production is factored in, the 1.78 mbpd remains realistic and attainable.
Despite challenges such as security concerns and force majeure, Kyari expressed optimism that the measures implemented by the Federal Government would ensure the targeted level of production.
Furthermore, the GCEO assured that NNPC Ltd. would uphold the remittance of dividends to the Federation Account as outlined in the Medium-Term Expenditure Framework. He also affirmed the feasibility of projected dividends from the Nigeria Liquefied Natural Gas Ltd., emphasizing compliance with stipulated laws for direct flow into the Federation Account.
In response to a question about the Company’s Road Tax Credit Scheme, Kyari assured that all roads under the scheme would be duly completed. He explained that the scheme is overseen by the Ministry of Works, with the Federal Inland Revenue Service and NNPC Ltd. playing supervisory roles.
Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, expressed satisfaction with the explanations provided by the NNPC Ltd.’s GCEO, stating that the interactive session aimed to deepen conversations on the 2024 Appropriation Bill for informed legislative adjustments.
