Nation
FG Launches NUCOP To Crash Crude Production Cost, Boost Competitiveness
Efforts to achieve the $10/barrel crude production target deepened, yesterday, as the Federal Government officially launched the Nigerian Upstream Cost Optimisation Programme (NUCOP).
Speaking at the launch, the Minister of State, Petroleum Resources, Chief Timipre Sylva, said that the aim of the new initiative was to boost industry collaboration and process enhancement.
According to him, of all the nine priority areas given to the ministry as its operational mandate, reduction of crude oil extraction cost remains pivotal.
He said that the ministry has since identified some initiatives to tackle the challenges stacking against lower production cost, adding that the cost in Nigeria was exceptionally high compared to other oil-producing nations like Iran and Saudi Arabia.
Sylva added that high cost would rob the country its desire to attract investments and remain globally competitive.
He added that capital expenditure, operational cost, policy-related elements, weak collaboration, capacity and capability issues, facility reliability, single sourcing syndrome, high magnitude of crude loss, multiplicity of tariff, among others, are issues that need to be urgently tackled.
“Members of the NUCOP are officials of the Petroleum Ministry, DPR, NCDMB, PETAN, NNPC, among others”, he said.
“They’ve found short and medium-term solutions. Average total cost is now below $30/barrel for JV contract and less than $20 for PSC. We need to do more. Engagement should reach a consensus on cost reduction.
“We are making a case for shared services. Our target is 3mpd daily production and 40 billion barrels reserves”.
Sylva assured the gathering that the executive arm of government was on the same page with the legislature to pass the Petroleum Industry Bill (PIB) this year.
“We want to position Nigeria as the best designation for investment in the hydrocarbon sector. The benefits of NUCOP are many. It includes; reducing the contracting cycle to three months or less, prompting efficiency, profitability and competitiveness. Its success is dependent on collaboration of stakeholders”, he added.
In his remarks, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, said Nigeria must pull down production cost, describing it as a self interest pursuit.
“There’s a global energy transition. Less cost-efficient companies cannot survive today. $50/barrel production cost cannot survive. There are issues around synergy that we’ve not achieved.
“There are issues of security. Many companies are hiring their own armies and we can’t continue like that. Issues of taxes and others have to be addressed. Our practices must change so that service providers can deliver.
“So, we can achieve economic growth and our partners can derive benefits. It’s not CSR but pure business. We must have the best of fiscal environment and policies so that cost of operation can come down and our target is at least $10/barrel.
“If we do these, tax benefits will increase and profit margin will increase. This is a task that must be done. This partnership will help the country. Crude has hit the $60 and it comes with a product price increase. We are trying to keep the country wet. We are engaging with labour. No provision for subsidy in the budget”, the NNPC boss explained.
In his remarks, the Chairman, Senate Committee, Upstream, Albert Bassey Akpan, said there was a need to take a second look at production cost for Nigeria to remain competitive.
“We must pay attention to the passage of PIB and pass it before the end of 2021. We need to look at tax structure and security issues. There is need for relevant stakeholders to harmonize their logistics structure”, he said
Also commenting, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, said that the discussion on cost reduction was long overdue.
He assured of the board’s support and collaboration towards achieving the target.
“Cost reduction comes with some pain and what’s important is how the business will survive to sustain jobs. Local content is a panacea for cost reduction. There is massive cost savings when Nigerians run the business unlike when expatriates flood the business”, he noted.
For the President of the Petroleum and Natural Gas Workers Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Usifo, he urged the gathering to look at expatriates’ costs as many of them are earning fat pay doing jobs capable Nigerians should handle.
The Rivers state Government has identified six local government areas with the highest burden of maternal and Neonatal mortality in the state.
State Commissioner for Health Dr Adaeze Chidinma Oreh said this in an interview with newsmen at the Maternal and Neonatal Reduction innovation initiative ( Mamii)Rivers state activation workshop and state engagement meeting in Port Harcourt.
The event was organized by The Federal Ministry of Health in conjunction with its Rivers state counterpart in Port Harcourt.
Dr Oreh also restated the preparedness of the state government to support current efforts by the federal government towards the reduction of maternal and infant mortalities in the country.
She mentioned the affected Local Government Areas to include, Andoni,Akuku Toru and Ahoada West
The rest according to the Commissioner are, Bonny, Etche and Emohua Local Government Areas.
She said the workshop will enable the team from the federal ministry of health and social welfare to brainstorm with the view to finding solution to the problem.
The Commissioner also gave reasons why the Mamii initiative was the best as far as finding solution to maternal mortality was concerned.
“The uniqueness of the Mamii initiative driven by the federal ministry of health and social welfare was that we used evidence to elicit the reasons for this deaths, so that the solutions will be context specific and tailored to the particular environment where those deaths are occuring
“For us in Rivers state we have six Mamii LGAs , nationally we we have 172 local government areas “the Commissioner said.
Earlier in her opening remarks,Dr Oreh said the state government is prepared to work with the federal ministry of health and social welfare to check the rate of maternal mortality in the state.
She commended The Minister of Health and Social welfare Professor Ali Muhammad Pategi for driving the Mamii initiative across the country and expressed optimism that the programm will see to the end of maternal mortality in the country.
Also speaking the National Coordinator Nigeria health sector Renewal Initiative Dr Adam Ahmed said Rivers state is the last state among Mamii states in the country to host the team.
He said the team will visit the affected Local Government Areas with the view to interacting with the people on how to check the trend.
He expressed the hope that with continuous efforts, maternal mortality will be checked.
Also speaking the permanent secretary Rivers state Ministry of Health Professor Justinah Jumbo said the government is not leaving any stone unturned towards reduction in maternal deaths.
The permanent secretary said Governor Siminalaye Fubara is a health friendly Governor who is desirous in improving the quality of health of Rivers people.
John Bibor
The Christian Association of Nigeria (CAN) Rivers state has declared a one day fasting and prayer to seek divine intervention on the political crisis rocking the state.
The Association said this at a media briefing in Port Harcourt.
State chairman of the Association,Most Rev. Dokiboeriya B. Kaladokubo said the fasting and prayer which holds February 5th at the Ecumenical center Abonnema wharf was in furtherance of the Association peace, advocacy, good governance and political stability in Rivers state.
He said the Association has observed with disappointment the dangerous trend and and gradual descent of governance in Rivers state into uncertainty and near oblivion, adding that the trend has exposed Rivers citizens to insecurity, economic hardship, loss of livelihood and the destruction of lives and property.
Kaladokubo said the association has also watched with dismay the unfolding political crisis in the state, stressing “what we see today is not merely a disagreement among political actors,it is a dangerous drift that threatens the very foundation of governance, peace, security and the collective well-being of our people”
According to him,”as the custodians of the spiritual and moral conscience of Rivers state,we can not remain silent while the state is pushed steadily towards chaos, institutional breakdown and avoidable suffering
“We are not oblivious of the fact that Rivers state like some other states in the federation often experience tension between the Executive and the Legislature “adding”when disagreement escalate they can hinder governance, delay budgets ,erode public trust and impede peaceful, constructive development”
The Christian body stressed the need for parties involved in the conflict to seek for peaceful resolution, stressing that as Christians and children of God “we should seek the path of peace and reconciliation as Christ Himself taught us”it said
The Association further encourage the both arms of government to imbibe the spirit of forgiveness and prioritize good governance in Rivers state
“We also advised all the parties in these conflict to call their supporters to exercise restraint in all their utterances and de-escalate tension in the interest of peace in Rivers state ”
CAN also described as disturbing the role some elder statesmen and individuals in the state have played and continue to play in the crisis when they should have serve as voices of wisdom, restraint and unity
“Rather than guiding the process towards peace, some have taken sides,fueled division and encouraged instability becoming more dangerous than those currently holding power”,it said.
John Bibor
-
News3 days agoDon Lauds RSG, NECA On Job Fair
-
Niger Delta1 day agoPDP Declares Edo Airline’s Plan As Misplaced Priority
-
Nation1 day agoHoS Hails Fubara Over Provision of Accommodation for Permanent Secretaries
-
Sports1 day agoSimba open Nwabali talks
-
Niger Delta1 day ago
Stakeholders Task INC Aspirants On Dev … As ELECO Promises Transparent, Credible Polls
-
Niger Delta1 day ago
Students Protest Non-indigene Appointment As Rector in C’River
-
Transport1 day agoNigeria Rates 7th For Visa Application To France —–Schengen Visa
-
Oil & Energy1 day agoNUPRC Unveils Three-pillar Transformative Vision, Pledges Efficiency, Partnership