NNPCL stands firm as Senate attempts to raise crude production benchmark in 2024 budget

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), firmly rejected the proposal by the Senate Committee on Appropriation to increase the crude oil production benchmark in the 2024 Appropriation Bill from 1.7 million barrels per day (mb/d) to 1.8 mb/d. The rejection came during the budget defense session between the Senate committee and the NNPCL management.

Chairman of the Senate Committee on Appropriation, Solomon Adeola, had suggested the increase during the session. President Bola Ahmed Tinubu had presented a N27.5 trillion Appropriation Bill on November 29, with an average crude oil production benchmark of 1.78 mb/d and a crude oil price benchmark of $77.96.

Mele Kyari, in response to the suggestion, emphasized the importance of adhering to the benchmark approved by President Tinubu in the Appropriation Bill. He argued that the crude oil price and production benchmarks were determined by global dynamics.

“I will advise that we stick to the submission of Mr. President on the quota. We will not get crude oil (for) less than $70. Once economies are growing, there will be sustained demands for crude oil in our country and other countries,” stated Kyari.

Data from the Nigerian Upstream Petroleum Regulatory Commission indicated a drop in Nigeria’s crude oil production to 1.56 million barrels per day in October from 1.57 million bpd in September. Despite this, the price of Brent Crude rose by two per cent to $75.84 a barrel for the first time in weeks, driven by projected demand growth in the US.