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NNPC Cuts $3.4bn Costs, Reports 1.7mbpd Crude Production
The Nigerian National Petroleum Company Limited (NNPC) has cut operating costs by $3.4 billion through contract restructuring and optimisation, in what it described as one of its biggest efficiency gains since becoming a commercial enterprise.
Group Chief Executive Officer Bashir Bayo Ojulari announced the achievement while presenting NNPC’s one-year performance scorecard at the 25th NOG Energy Week in Abuja.
Ojulari said the savings were achieved without slowing operations, proving that efficiency rather than higher spending is central to NNPC’s strategy.
“These are not just numbers. They demonstrate that operational discipline, commercial efficiency, and strategic reforms can simultaneously increase production, reduce costs, and improve returns to the nation,” he noted.
The report showed crude oil production rose 6% to 569.7 million barrels, gas output increased 8.1% to 2,576 billion cubic feet, and government revenue contributions climbed 21.8% to ₦19.5 trillion.
Nigeria’s crude output has reached 1.71 million barrels per day, the highest in five years, while NNPC Exploration and Production hit a record 365,000 barrels per day.
The company targets 2 million bpd by 2027 and 3 million bpd by 2030, alongside gas production growth to 12 billion cubic feet per day by 2030.
Ojulari highlighted improved infrastructure reliability, with major evacuation pipelines now operating at 100% availability, and crude export terminals achieving a 98% recovery factor, compared to near-zero performance at Bonny in 2022.
He also announced landmark Gas Sale and Purchase Agreements covering long-term LNG feed gas and domestic supply, expected to unlock over $20 billion in investments. Transparency measures such as resumed monthly remittances, earnings calls, and performance reporting were also noted.
Looking ahead, Ojulari urged Africa’s energy stakeholders to deepen collaboration, saying, “The future of African energy will not be determined solely by the resources beneath our soil, but by the quality of the partnerships we forge above it.”
