Nigerians should buckle up and prepare for real tough times in at least the next three months, the GMD of the NNPC, Mele Kyari, warned on Wednesday.
Nigerians should buckle up and prepare for real tough times in at least the next three months, the Group Managing Director of theMr Kyari gave the warning amid the global gloom trailing last Monday’s slide in crude oil prices to close to $30 per barrels following the growing impact of the coronavirus pandemic on the world economy.Central Bank of Nigeria“Prepare for trouble for at least three months,” Mr Kyari said in his statement at the event.
Nigeria, he said, has the capacity to meet the expectation of raising her oil production to three million barrels per day as well as increase her reserve from the current average of 36 and 37 billion barrels to 40 billion barrels in the next two to three years. “Today, there are over 12 stranded LNG cargoes globally that have no hope, because there is an abrupt collapse in demand in the oil market associated to the coronavirus. It has never happened.
“So, when country’s crude oil is selling for $30 per barrel, and circumstances are forcing the country to drop the price by $8, it means in the market the country will be selling for $22 per barrel. That’s a massive problem. “When crude oil price has gone down to $32 per barrel and you are producing at $30, you don’t need a soothsayer to tell you, you are out of business already,” he said.Beyond low prices, he said competition will ensure those producing at lower cost will continue to have patronage from buyers, “which is why the depression as a result of the impact of the coronavirus will be felt for a long while to come, at least three months”.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crude oil crash: prepare for tough times - NNPCThe Nigerian National Petroleum Corporation (NNPC) has warned Nigerians to prepare for more trouble ahead following the crash in the price...
Read more »
Coronavirus: 50 Nigerian crude oil cargoes stranded in market, says NNPC
Read more »
NNPC to reduce cost of crude oil production from $17The Nigerian National Petroleum Corporation (NNPC) has expressed its readiness to strategically put in place measures that would alleviate the cost of crude oil production in Nigeria
Read more »
Crude oil crash: prepare for tough times - NNPCThe Nigerian National Petroleum Corporation (NNPC) has warned Nigerians to prepare for more trouble ahead following the crash in the price...
Read more »
Coronavirus: 50 Nigerian crude oil cargoes stranded in market, says NNPC
Read more »
NNPC to reduce cost of crude oil production from $17The Nigerian National Petroleum Corporation (NNPC) has expressed its readiness to strategically put in place measures that would alleviate the cost of crude oil production in Nigeria
Read more »