The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, rejected a proposal from the Senate Committee on Appropriation to increase the crude oil production benchmark in the 2024 appropriation bill.
The Senate committee suggested raising the benchmark from 1.7 million barrels per day (mb/d) to 1.8 mb/d. Kyari provided an update on the Turn Around Maintenance of the nation’s refineries, stating that they would soon become operational, contributing to energy security. He mentioned specific timelines for the resumption of production for the Port Harcourt, Warri, and Kaduna refineries.
Despite the committee’s proposal, Kyari emphasized sticking to the crude oil production benchmark of 1.78 mb/d approved by President Bola Ahmed Tinubu in the proposed budget, citing the dynamics of the global oil market. He cautioned that security challenges in the Niger Delta region, including crude oil theft and illegal bunkering, could impact production projections.
Lawmakers expressed dissatisfaction with the N406 billion dividend remitted to the Federation Account by NNPC between July and November, urging the company to strive to emulate global peers like Saudi Aramco and Petrobas of Brazil.
Kyari defended NNPC’s operation, stating that until the passage of the Petroleum Industry Bill into law, the company was not run as a profit-driven enterprise.
