Home | Business | NPDC production hits 102,000 b/d

NPDC production hits 102,000 b/d

By Clara Nwachukwu

The Nigerian National Petroleum Corporation, NNPC, said crude production at its upstream subsidiary the Nigerian Petroleum Development Company, NPDC, has increased to 90,000 barrels of oil per day or 102,000 barrels of oil equivalent per day, up from previous 60,000 bpd. Part of the output also includes a 50 million standard cubic feet per day of natural gas sales.

The corporation noted that the feat was achieved on account of Federal Government’s support of NNPC/ NPDC transformation and growth strategy towards repositioning the company within the next five years.

In a statement on Wednesday by the Group General Manager, Group Public Affairs Division, NNPC, Dr. Levi Ajuonuma, the new aspiration is designed to increase both NPDC reserves and production base to over 1.5billion barrels and 250,000 barrels of oil equivalent per day respectively by 2015.

He said the strategic growth aspiration is bolstered by the expansion of NPDC operations via the assignment of equity interests especially in the IOC (SPDC/TOTAL/NAOC) divesting blocks.

Under the arrangement, the IOCs divested 45 per cent equity in Oil Mining Leases, OMLs 4, 38 and 41 to SEPLAT, and NNPC subsequently assigned 55 per cent operating interest to NPDC.

The NNPC spokesman stated that the assignment of these three blocks resulted to current increase in reserves of over 200 million barrels of oil, and production uplift of 28,000 barrels of oil equivalent per day (20,000 bpd of oil and 50 million standard cubic feet gas sales per day).

“NPDC’s expectation is to continue to increase production in these assigned blocks to about 35,000 barrels of oil equivalent per day by year end 2011. The c ompany will continue to maintain this level of performance which will significantly surpass the subsidiary’s 2009 Annual General Report declaration of over N15 billion profit after tax,” Dr. Ajuonuma stated.

He noted that it is envisaged that in the years ahead, NPDC will continue to strive for operational excellence to increase its profitability and subsequently position itself as a major oil and gas player in Nigeria.

Ultimately, the NNPC Corporate expectation is to have similar assignments to NPDC to further strengthen and expedite the growth aspiration and position NPDC among its peers like Petrobras, Petronas etc as a major National Oil Company.

Dr. Ajuonuma explained that this strategy is essential in the upstream sector and provides National energy security for the nation, noting that a strong National Oil company is sine qua non for National Security as practiced by all oil producing countries.