• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 19 mins U.S. Shale Oil Debt: Deep the Denial
  • 15 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 1 day EU to Splash Billions on Battery Factories
  • 12 hours The Dirt on Clean Electric Cars
  • 9 hours Owning stocks long-term low risk?
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 3 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 day The end of "King Coal" in the Wales
UAE Boosts Production, Introduces New Crude Blend

UAE Boosts Production, Introduces New Crude Blend

UAE’s ADNOC is boosting production…

Oil Market Loses Its Bullish Edge

Oil Market Loses Its Bullish Edge

Bullish sentiment has dominated oil…

Nigeria Cuts Oil Producing Cost To $27 Per Barrel

Nigeria Oil

Nigeria has reduced the unit technical cost (UTC) for producing oil to US$27 per barrel as of end-2016 from US$70 per barrel in 2014, Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), said in a speech on Thursday.

With reduced cost of production, govt’s share of economic revenue will improve which means reduced budget deficit,” NNPC said on Twitter in updates of Baru’s speech. Nigeria is also committed to raising the efficiency of its refineries so that by 2019, it will no longer import petroleum products, Baru noted.

NNPC has also renegotiated the rig rates for its deep offshore operations from US$580,000 to US$164,000 per day, the official said.

According to barrel breakdown graphics by The Wall Street Journal from early 2016, Nigeria had the world’s third highest average cash cost – US$28.99 - to produce a barrel of oil or gas equivalent in 2016 behind the UK and Brazil.

In November 2016, Nigeria’s Minister of State for Petroleum Resources, Emmanuel Kachikwu, said that the country would aim to further reduce the technical cost of oil production to US$18 per barrel, although he gave no specific timeframe for achieving this goal.

Nigeria’s oil industry and economy have been suffering badly not only from the low oil prices but also from the persisting militant attacks on oil infrastructure that have crippled crude production. The sabotages reduced Nigeria’s output from more than 2 million bpd at its highest point in 2015 to 1.4 million bpd last summer, the lowest production level in 30 years. Due to the militant violence, Nigeria was exempt from the OPEC production-cut deal, but since the cartel struck the agreement at end-November, Nigeria has been gradually lifting output, possibly undermining efforts by fellow OPEC members that are trying to cut.

On Thursday, Nigeria’s Finance Minister Kemi Adeosun said that the country’s oil production had risen to 2.2 million bpd, following a recent decline of attacks on oil infrastructure in the Niger Delta.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News