The Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mallam Mele Kyari, has noted that given the reality of Coronavirus and today’s economic realities, the era of $30 per barrel of oil no longer exist.
Mallam Kyari who stated this while giving his goodwill address at the 38th Annual Virtual International Conference and Convention of the Nigerian Association of Petroleum Explorationists on Tuesday, emphasised that given the prevailing conditions, the main preoccupation of the corporation is sustaining operations by improving efficiency, as it cannot afford to shut down operations given the linear relationship between the oil sector and the economy.
“As a National Oil Company, our response to situation like this (COVID-19) is not to shut down operations owing to the linear relationship between the oil industry & our Nation’s economy. What first come to mind is how to survive & sustain our operations,” Kyari said.
“For us today,sustaining operations & making progress means improving efficiency, reducing costs, eliminating wastages,entrenching Accountability, acting with Transparency and embracing technology/innovation to drive Performance and realize value across strategic investment portfolios”
“The NNPC has made significant progress in improving operational efficiency through the adoption of technology and deliberate effort to curtail soaring cost of operations across strategic assets.
“It is instructive to understand that the current market reality cant support inefficiency and escalated costs of operations. The era of $30/bbl oil no longer exist. I therefore urge you to continue to demonstrate professional commitment to help the industry survive”
“Let me appreciate the good work/resilience of NNPC’s inhouse professionals in the ongoing inland basins exploration activities that culminate to recent discovery of hydrocarbons in Gongola basin. We’re proud that it is NAPE members that are spearheading this effort.”