The Nigerian National Petroleum Company (NNPC) Limited says it has reduced its operating costs by $3.4 billion through an aggressive contract restructuring and optimisation programme.
Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, disclosed this while presenting the company’s one-year performance scorecard at the opening ceremony of the 25th NOG Energy Week in Abuja.
He described the cost slash as one of the company’s biggest efficiency gains since becoming a commercially driven enterprise.
The company’s performance report also showed improvements in crude oil production, gas output, government revenue, export terminal efficiency and operational transparency.
According to Ojulari, the cost savings were achieved without slowing operations, demonstrating that improving efficiency rather than increasing expenditure remains central to the company’s strategy for delivering value to the Federation and investors.
He explained that the contract optimisation programme had enabled the company to eliminate waste, improve commercial discipline and strengthen the competitiveness of Nigeria’s petroleum industry.
Ojulari said NNPC recorded a six per cent increase in crude oil production to 569.7 million barrels year on year, while gas production rose by 8.1 per cent to 2,576 billion standard cubic feet. He added that the company’s contribution to government revenue increased by 21.8 per cent to N19.5tn over the review period.
