NNPC Rallies Industry Stakeholders for Upstream Cost Optimization ….As Sylva Launches NUCOP




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Minister of State for Petroleum Resources, Chief Timipre Sylva, and NNPC GMD, Mallam Mele Kyari, conferring during the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP) held to rally oil and gas industry stakeholders to achieve the $10 per barrel production cost target by adopting cost reduction measures... Tuesday.
Minister of State for Petroleum Resources, Chief Timipre Sylva, and NNPC GMD, Mallam Mele Kyari, conferring during the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP) held to rally oil and gas industry stakeholders to achieve the $10 per barrel production cost target by adopting cost reduction measures... Tuesday.


The Nigerian National Corporation (NNPC) has called on stakeholders in the and gas industry join in working towards reducing operations cost achieve the $10 or less per barrel cost target.
A press by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated that the Group Managing of NNPC, Mallam Mele Kyari, made the call at the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP) which held at the NNPC Towers.
Speaking at the event, the NNPC boss said the current reality dictated by the global energy transition and demand erosion occasioned by the -19 pandemic has made cost optimization imperative.
“It is in our informed interest optimize our cost of . The realities of energy transition and investor choices are very much clear us. There is nowhere in this world where a less cost-efficient operator can survive today,” the GMD posited.
He called on industry players to adopt such measures as transparency, collaboration, efficiency and shared services to help in driving down cost in order to meet the target.
Mallam Kyari disclosed that under the NNPC operational theme for the year known as ‘Execution Excellence’, the Corporation would achieve a contracting cycle of six months or less which would help create efficiency and drive down unit operating cost to sub $10 per barrel level.
In his address, the Minister of State for , Chief Timipre Sylva, stated that currently the average cost for Joint Venture was below $30 per barrel while that of Sharing (PSC) was below $20 per barrel, stressing that there was need for cost optimization in order to keep the and Gas Industry afloat in Nigeria.
“Today’s engagement with industry stakeholders, under the NUCOP, is part of the resolve of this administration to confront this challenge of high production cost. expect robust discussions and a realistic roadmap to achieve the cost optimisation objectives,” the Minister stated.
In his goodwill message, the Chairman, Upstream, Senator Bassey Akpan, said the 9th would pass the Industry Bill (PIB) to a conducive environment for all operators in line with global best practices.
Leaders of agencies, trade groups and labour unions in the and Gas Sector such as the Nigerian Content Development and Monitoring Board (NCDMB), Production Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), Petroleum Association of Nigeria (PETAN), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) who spoke at the event described the initiative as a welcome development and pledged their support for NUCOP.
NUCOP is an industry-wide initiative designed to optimize Nigeria’s upstream operating expenses process enhancement and industry collaboration to ensure improved and sustainable profitability for all stakeholders.

Dr. Kennie Obateru
Group General Manager
Group Public Affairs Division
Nigerian National Petroleum Corporation
NNPC Towers, Abuja.
9th February, 2021.