NNPC GCEO, Kyari speaks on Tinubu’s govt crude oil production, price target for 2024

The 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 company's Group Chief Executive Officer (GCEO), provided this assurance during an interactive session with the Senate Committee on Finance.

Speaking on the market dynamics about 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.”

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. were also realizable and would flow directly into the Federation Account as stipulated by the law.