Oil production cost drops from $70/barrel to $27/barrel
Nigerians will soon have reasons to smile following a recent success recorded by the nation's oil sector.
According to a report by oilprice.com, the unit technical cost for producing oil has dropped from $70/barrel to $27/barrel in about two years.
Makanti Baru, the group managing director of the Nigerian National Petroleum Corporation (NNPC), made this revelation on Thursday, February 23, stating that this development is monitored from 2014-2016.
The report also revealed that the rig rates for NNPC's deep offshore operations have dropped drastically from US$580,000 to US$164,000 per day, the official said.
Nigeria reportedly had the world’s third highest average cash at US$28.99 in 2016, to produce a barrel of oil or gas equivalent in 2016 only behind the UK and Brazil.
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