July 8 (THEWILL) — The Nigerian National Petroleum Company (NNPC) Limited says it saved $3.4 billion through contract restructuring and optimisation between April 2025 and July 2026, while remitting N19.5 trillion to the Federation Account during the same period.
Group Chief Executive Officer, Bayo Ojulari, disclosed this on Tuesday at the opening of the 25th Nigeria Oil & Gas (NOG) Energy Week in Abuja, where he outlined the impact of ongoing reforms aimed at improving operational efficiency, reducing costs and boosting government revenue.
According to Ojulari, the contract optimisation programme contributed to a 21.8 percent year-on-year increase in government revenue, while NNPC maintained 100 percent compliance with its joint venture (JV) cash call obligations throughout the period.
He noted, however, that compliance among JV partners remained weak. Of the 27 partners, only six fully met their obligations, while eight recorded an average payment rate of just 14 percent, prompting the company to invoke remedies under the Joint Operating Agreements.
Ojulari said crude oil production increased by 6 percent year-on-year, while gas output rose by 8.1 percent, reflecting improved upstream operations.
Current crude production has reached 1.71 million barrels per day, the highest level in five years, while gas production has climbed to 7.5 billion standard cubic feet per day.
He attributed the gains to stronger operational performance, improved infrastructure reliability and strategic partnerships, including long-term gas supply agreements with Nigeria LNG and deepwater investments valued at more than $20 billion.
Looking ahead, Ojulari said NNPC is prioritising seven strategic projects, including the AKK gas pipeline, UTM Floating LNG, the Zabazaba deepwater development and refinery enhancement projects, to further expand production and gas infrastructure.
Also speaking at the event, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed that the Federal Government has engaged PricewaterhouseCoopers (PwC) to benchmark the more than 270 fees, taxes and levies imposed on oil and gas operators.
He said the review is aimed at harmonising multiple charges, reducing compliance bottlenecks and making Nigeria’s oil and gas sector more competitive for investment.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
