FG targets 1 billion barrel annual oil production to shore up revenue

‎Federal Government has revealed  plans to shore up oil  revenue resources by increasing annual oil production to 1 billion barrels per day,according to Ibeh Kachikwu. Nigeria’s  Minister of state for  Petroleum Resources 

Kachikwu said,Nigeria 36.18 billion proven reserves of crude oil and condensates‎,as on first quarter of 2018,adding that,”Our current production level of 2.15 million barrels per day is encouraging us for a production that is stable.”

Speaking on the increased global demand in oil production,Kachikwu explained said  the truth is that oil demand continues to increase ,adding that,”When we talk about electric cars,it only represents 2% of mobility globally,and oil demand continues to increase.”

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He further urged Oil producing African Countries to firm up  regional oil markets ,while also focusing on global participation through by taking advantage of their regional strength.

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On the current efforts at revamping Nigeria’s refineries,he said,”We have continued working on refineries which has continued to be a big challenge for all of us.NNPC is currently with three or four refineries that the government owned,hoping to get the sign off financial from what was needed to commence operations.”‎

On the updates of the modular  refineries, Kachikwu said,”We have made a lot of successes on the modular refinery stage,and out of the 40 that were licenced,‎10 has commenced work,and has started construction and we are expecting them to crystallise their production, hopefully by the next qauter of next year.”

He pointed out further that,”If there is one legacy we would leave for our people, it would be to ensure our refineries are working optimally,while dissuading exportation of raw crude from Nigeria..It takes time takes lots of financial commitments,but we are very committed to that.”

While speaking on the commercialisation of flared Gas,”Our works on Gas flare reduction and LPGS are also great. It is now reduces to 9 percent,which was currently 25% when we came in.”

“Flare is an issue .It should not be a tolerable index,it should be non-existent index .We have set the 2020 time line to exiting flare. Statistics continuolsy show that we are exiting flare,but we have also directed oil companies in Nigeria to find thrid party firms that could help exit flare and entrench commercialisation.”

‎Kachikwu who also spoke on government’s efforts in addressing concerns of production costs said,” We are determined on reducing cost of oil  production. ‎”

While raising concern on high cost of oil producition,he said the federal government is determined to ensure lower prices working with international oil companies.

“Oil production in Nigeria continues to be extremely high and one of the highest among quite frankly some OPEC countries.It is important that our focus on dragging down cuts must not just be driven by the government and other stakeholders,but must be driven by business sense.”

Kachikwu said,”We have seen production costs  go down to $22 per barrels but our aspiration is to ensure it goes down further to $15.Because countries are pushing down their production costs and targeting $8. We need to drag it down further”

He said,the the  Ministry of Petroleum resources  would soon come up with Template to ensure companies doing business in Nigeria reduce production costs.

“Unbelievable costs of production impacts on the revenue stream of the country negatively.”Kachikwu noted.

On local content promotion,Kachikwu said,”For Nigerian players they need to rise up,and I would want to see them target 30% production,as it is right now about 11 and 12 percent .Focus by local oil firms have been largely hinged on allocations,huge gains. We need to get into more serious issues.Massive procurements,engineering.

I like to see our indigenous fames rise up to opportunities in this area.‎”