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2018: NNPC, geologists raise oil & gas outlook

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2018: NNPC, geologists raise oil & gas outlook

The highest body of earth scientists in Nigeria, Nigerian Association of Petroleum Explorationists (NAPE) and the Nigerian National Petroleum Corporation (NNPC) have raised the bar for the oil and gas sector’s outlook in 2018.

While NAPE averred its position through its Immediate past President, Abiodun Adesanya, chief strategist for the NNPC conveyed the corporation’s outlook in a separate document.

Stating that the outlook for the sector looks better in 2018, Adesanya, who based his group’s belief on the spate of efforts by the government as well as the relative peace in the Niger Delta, said that it could see light at the end of the tunnel for Nigeria by 2018.

“I think it is a very commendable effort from the part of government to sustain our production and get us until we get to that standard of 2.2 to 3 million barrels per day,” he said.

“So, we also recorded some success in terms of this same vandalization issues, you will recall that the vice president and minister of state for petroleum resources did a criss-crosses around the Delta, speaking to stakeholders and I think that has resulted in the result that we have right now,” he said.

Besides, Adesanya said production has been “relatively steady and increasing and that’s largely contributing to the positives that we are witnessing in the economy.

“So everything points to some light at the end of the tunnel.”

In the same vein, Group General Manager, Corporate Planning and Strategy, Nigerian National Petroleum Corporation (NNPC), Mr. Bala Wunti, said that the Federal Government’s 2.3 million barrels per day crude oil projection for the 2018 budget is achievable and realistic.

Mr. Wunti, in a document that he presented to the House of Representatives Joint Committee on 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sighted by New Telegraph, said that the current production capacity for the country was more than 2.3 million barrels per day, noting, however, that due to the insecurity in the Niger Delta region, the full production capacity has not been achieved over the years.

“The 2018 crude oil national production projection for Joint Ventures, Modified Carry Arrangement or External Financing, Production Sharing Contracts, Independents, Marginal Fields and Service Contracts is about 2,298,000 barrels per day,” Mr. Wunti said.

He added that the 2018 price projection on the long term price assumption was based on price scenarios of $35 (low), $45 (medium) and $55 (high), stressing that most price forecasting agencies thought that the medium price scenario had the highest probability of occurrence, which the 2018 budget was hinged upon.

“Consequently, a conservative price projection of $45 per barrel was used as benchmark for crude price for 2018 budget,” Mr. Wunti stated.

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