The Nigerian National Petroleum Corporation, NNPC, has said it has reduced the cost of crude oil production to $23 per barrel from $ 78 per barrel as of August 2015.
The reduction, the corporation said, represents a 70.5 per cent fall.
A statement Wednesday by Ndu Ughamadu, NNPC spokesperson, quoted Dafe Sejebor, Group General Manager, National Petroleum Investment Management Services, NAPIMS, as making the revelation during the inauguration of the anti-corruption committee of the unit.
Sejebor said that the country had saved a minimum of $3 billion per annum.
According to him, NAPIMS arrived at the figure after looking at the difference between the $78 and $23, representing the old and new cost of production in relation to the current daily average production in the country.
He said the target was to bring the cost of production to $17 and $19 for onshore and offshore production, respectively.
The NAPIMS boss also commended the Nigerian government for its support to the NNPC management in tackling the challenges in the petroleum industry, making specific reference to the cash call exit agreement signed in 2016 and the reduction of contracting circle from three years to six months.