Nigeria’s Oil Producers Target 30% Growth In Five Years

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Indigenous oil producers are expected to grow their contributions to the national crude oil basket from the current 10 per cent to 30 per cent within the next five years.
The Minister of State for Petroluem Resources, Dr.Emmanuel Ibe Kachukwu, who set the target at the just concluded Nigeria Oil and Gas Conference in Abuja, recently, informed that the nation aspires to pump 2.5 million barrels of crude oil per day by 2023.
Kachukwu said indigenous producers must strive to contribute 25 to 30 per cent of that projection, explaining that ‘project 100 is an initiative to identify key 100 companies that offer important services but lack the capital to expand and acquire the latest technologies and skills.
According to him,’’ the Federal Government will work with big oil companies to provide guaranteed work and financial support for them to grow’’.
The Minister reiterated his call for operating companies to lower their costs of producing crude oil, warning that government might be forced to stop production from expensive fields.
‘’ I hate to take a costly barrel to the market when I have a cheap barrel. Everybody needs to drive down cost to the $15 concept we have set as the ideal cost of producing oil in this country and not $22 or$23’’, he said.
He disclosed that two companies have met the target, adding that the Federal Government will like to get other companies to do same.
The Minister revealed that there will be incentives in terms of access to the market and what should be given to the least cost producer.