The Nigerian National Petroleum Company Limited has reduced its operating costs by $3.4bn through an aggressive contract restructuring and optimisation programme, in what the state-owned energy company described as one of its biggest efficiency gains since becoming a commercially driven enterprise.
The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, disclosed this on Tuesday while presenting the company’s one-year performance scorecard at the opening ceremony of the 25th NOG Energy Week in Abuja.
The cost-cutting achievement formed the centrepiece of the company’s performance report, which also showed improvements in crude oil production, gas output, government revenue, export terminal efficiency and operational transparency.
According to Ojulari, the cost savings were achieved without slowing operations, demonstrating that improving efficiency rather than increasing expenditure remains central to the company’s strategy for delivering value to the Federation and investors.
He said the contract optimisation programme had enabled the company to eliminate waste, improve commercial discipline and strengthen the competitiveness of Nigeria’s petroleum industry.
