Nigeria's foremost Online Energy News Platform

NNPC, only Nigerian company to cut losses by N800 billion in one financial year – GMD

…improves efficiency by cutting its losses by 97%

The Nigerian National Petroleum Corporation (NNPC) is allegedly the only company in Nigeria that has cut its losses within one financial year by N800 billion.

This was disclosed by its Group Managing Director, Mele Kyari, via the corporation’s Twitter handle on Saturday.

According to Kyari, NNPC has improved efficiency by cutting its losses by 97% within a financial year.

He said, “We went ahead & published the 2019 audited report & were able to learn and cut cost & became more efficient.

“There is no company in the country which has cut its losses within one financial year by N800bn. We have improved efficiency by cutting 97% in our losses.

“These are truly difficult times for our Industry. But I am proud to say that we were able to maintain our obligations to the Federation Account for seven months without any fail despite the huge impact of the #COVID-19 pandemic on the oil and gas industry.”

Some months ago, Nairametrics had reported when NNPC disclosed some measures being taken to bring down the cost of crude oil production to $10 per barrel or below.

According to a press statement that was signed by NNPC’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, this was disclosed by the Corporation’s Chief Operating Officer (COO), Ventures and Business Development, Mr. Roland Ewubare, on a Channels TV breakfast programme on Friday, June 5, 2020.

Ewubare pointed out that the peculiarity of the terrain was an important factor in determining cost, with such issues as pipeline vandalism, crude oil theft, and some others being critical factors peculiar to the Nigerian terrain that would definitely drive up crude oil production cost in the country.