R-E-V-E-A-L-E-D: Nigeria making only $3 profit from oil barrel
...As Senate kicks over high cost

The leadership of the Nigerian National Petroleum Corporation NNPC), yesterday, came under fire in Senate, over high cost of oil production, resulting in a marginal profit of just $3 per barrel for the country.

This is coming amidst protests from senators against the $3 marginal profit being made on a barrel by the Corporation, rhey called on the Federal Government to get the nation’s economy diversified as quickly as possible.

Information on the high cost of oil production which is $21.2 per barrel , almost equaling $25 per barrel oil price benchmark fixed for the N10.509 trillion 2020 revised budget , came to the fore when officials of the Corporation appeared before the Senate Committee on Finance.

Trouble started when its Chief Operating Officer (Upstream), Yemi Adetunji was called upon by the Chairman of the Committee, Senator Solomon Olamilekan Adeola to explain why cost of oil production in Nigeria is far higher than those of other oil producing countries of the world .

According to Senator Adeola , while cost of oil production in Saudi Arabia is $4 per barrel and $3 per barrel in Russia, it is $21.2 per barrel in Nigeria , indicating very poor marginal profit of about $3per barrel based on new oil price benchmark of $25 per barrel .

The NNPC chief in his response , attributed the high cost of oil production to series of peculiarities ranging from security to crude oil theft .

However, virtually all the members of the committee dismissed his submission as untenable , declaring that required actions must be taken to address the abnormality .

Specifically, James Manager, in his remarks, said the security problem mentioned by the NNPC , was not tenable as similar problems exist in all other oil producing countries without high cost of production like Nigeria.

“Even the reason that he gave for the high cost of production per barrel I think they are not tennable because wherever oil is produced they have their own security challenge including even Saudi Arabia, Iran Russia, they have their own unique security issues how is our own so peculiar that our cost of production is up to $21 per barrel.

“You also mentioned administrative issue, which are those administrative issues why are we different from the rest of the world. These are issues that the national assembly are supposed to take up,”he said .

Another member of the committee ,
Senator Shaibu Gumau, declared that the existing $21.2 per barrel high cost of oil production and $25per barrel oil price benchmark is not commonsensical economically for the country .

” I can’t just believe even common sense cannot agree with this not even the national assembly. How could we expect a situation where cost of production of oil per barrel is $21.2 and the revenue is $25 per barrel.

“Yet other countries in the world not one, that their cost of production is not even up to $10 per barrel. It is difficult to understand and I dont think it is only National Assembly, even the executive themselves should sit down and ask themselves this question because we are watchdogs.

” Not because we are watchdog that is why we are disturbed but it has got to an extent that they too should be disturbed and there should be a solution and if not there should be an explanation that somebody can understand and agree but common sense can not understand this,” he lamented.

Jubrin Issa, also disagreed with the NNPC official over the high cost of oil production by aligning with his other colleagues.

He said: “I am disturbed because I expected the NNPC to dwell more on fixed costs but surprisingly you are talking about administrative cost, security, these are variables and even the fixed cost on the long run are also variables which you can also work on them.”

However, the Minister of State for Finance , Clement Agba, intervened by explaining to the committee members that peculiarities cited as reasons for the high cost of oil production, were real .

According to him, the North Sea production cost is higher than that of Nigeria and that as an insider , details of the $21.2per barrel oil production is well calculated.

Aside high cost of oil production , the NNPC officials , were also challenged by the committee to be more opened with their federally funded projects , the totality of which N484billion is voted for in the revised budget.

Source: https://www.sunnewsonline.com/r-e-v-e-a-l-e-d-nigeria-making-only-3-profit-from-oil-barrel/

this is naija.

Imagine the difference in production cost with other countries.

What a magic !

Oil will be useless in the next 50 years

The Nigerian economy need to be diversified...We have other sectors that could be worked on... Agriculture ,Entertainment ,Tourism and others..

This government needs to act fast

apache22b:
This Government of Buhari is so dumb and i am ecstatically delighted and disproportionately flabbergasted with enormous gratification and appreciation for the dispensation of such a tendering and mesmerizing information in which the prestidigitation of the concurrent and subsequent matter is thoroughly demonstrated through the innuances alluding to literal and metaphorical context. It is highly imperative to note that, such is the significance of the aforementioned, distortion in any shape or form will result in catastrophic ramifications to which will be the outcome of epic proportions. I thank you for your unequivocal.

My niggarrr
I must tell you
You need to slow down
No matter the amount of weed we smoke we can never be the most high. Only Jah( God) is the most high

I dey even blow mine right now for one of my guy house
We don eat paper rice tire. We just relax for back yard. Inside house dey hot

Lol

We're watching

A country without intelligent planners in public offices!
If this is a serious and vision-driven country, Petrol should be #50 per litre right now. But it's what it is!

Look at that picture: all they do is sit and rant on weighty matters they are not committed to create solutions to, and at the end of the month, take home millions of Naira.
Some of them even sleep during sessions and still get paid fully. No doctor, engineer, driver, banker, etc can do that and still keep their jobs.
Nigeria has no plan, so I am not surprised that we pay so much for what's cheap in other oil-producing countries.

.

Saudi insisted on developing their indigenous oil production company Aramco.
What is the use of NNPC to Nigeria ?

They cornive with shell and Chevron to be stealing our oil.

who dey patronise naija

Buhari should fulfil his campaign promise by diversifying the economy.

i thought Buhari said he will diversify the economy from oil?

Old wells, pipeline vandalism, government taxes as much as 85%, community settlement. Some kings get up to 1m dols a month. Etc. A disgrace of a country

Make una no worry na. Eyes go clear very soon...shee na only oil money una sabi chop for this country eh?

Nigeria has other resources we can tap into but oil money has blinded the eyes of our leaders. Attention is only on oil not thinking of diversification.

Nigeria needs to be sold and we share the money amongst ourselves.

apache22b:
This Government of Buhari is so dumb and i am ecstatically delighted and disproportionately flabbergasted with enormous gratification and appreciation for the dispensation of such a tendering and mesmerizing information in which the prestidigitation of the concurrent and subsequent matter is thoroughly demonstrated through the innuances alluding to literal and metaphorical context. It is highly imperative to note that, such is the significance of the aforementioned, distortion in any shape or form will result in catastrophic ramifications to which will be the outcome of epic proportions. I thank you for your unequivocal.

Very soon Nigeria will be a country that we read in philosophy books. Smh

THIS NNA PRESIDENT JUST CARRY BAD LUCK COME

Well if you consider these companies, pay lots of money for security, pay lots of money to community leaders... pipeline vandalism.. e.t.c. All these increases the cost of production.

Now, we need TOTAL DIVERSIFICATION of our economy.
Enhance made in Nigeria products.

Only God will help us in this country.

All this noise will go mute once they get their cut. Useless people, watch dog ko lap dog ni!

Welcome to 9ja where anything is possible

Plus Buhari,Plus FG,Plus APC supporters are all mad. The same buhari that said he was going to diversify the economy from oil.

So many fools in this country.

Imagine someone even saying Buhari should hurry up and diversify the country.

As if diversification is like fuccking Olosho for a very very long duration of 2 mins.


We have finally seen how useless this zoo we call our country is.

For years we have been doing nothing but collect oil money.

apache22b:
This Government of Buhari is so dumb and i am ecstatically delighted and disproportionately flabbergasted with enormous gratification and appreciation for the dispensation of such a tendering and mesmerizing information in which the prestidigitation of the concurrent and subsequent matter is thoroughly demonstrated through the innuances alluding to literal and metaphorical context. It is highly imperative to note that, such is the significance of the aforementioned, distortion in any shape or form will result in catastrophic ramifications to which will be the outcome of epic proportions. I thank you for your unequivocal.

YOU GO SOON ENTER STREET

Idiots here is your useless country fixbfirst it before you jump into Trumps case like your lifes depend on it.Brokeass smelling country

.

This is a serious matter