NNPC SLASHES OPERATING COSTS BY $3.4BN AMID RISING OIL PRODUCTION

The Nigerian National Petroleum Company Limited (NNPC Ltd) has achieved a significant $3.4 billion reduction in operating costs over the past year through aggressive contract restructuring and optimisation efforts.

Group Chief Executive Officer, Bashir Bayo Ojulari, described the savings as one of the company’s most substantial efficiency gains since transitioning to a commercially driven entity. The cost reductions were realised alongside strong operational performance, with crude oil production rising 6% to 569.7 million barrels and gas output increasing 8.1% to 2,576 billion standard cubic feet.

The company also remitted N19.5 trillion to the Federation Account, representing a 21.8% increase. Nigeria’s crude production has reached approximately 1.71 million barrels per day the highest in five years while NNPC Exploration and Production Limited hit a record 365,000 barrels per day.

Ojulari attributed the improvements to the company’s ongoing transformation agenda, which emphasises efficiency, transparency, and commercial viability. “Our transformation is yielding measurable outcomes,” he stated, highlighting contract optimisation as a key driver.

The developments come as NNPC continues to reposition itself amid global energy transitions and domestic reforms. Industry analysts view the cost savings and production surge as positive signals for Nigeria’s oil sector, potentially enhancing government revenue and sector sustainability.

Stakeholders expect further gains as the company deepens reforms and partnerships to boost efficiency across the value chain.