Operators in Nigeria’s oil and gas space have often pointed to the high unit cost of production as one of the major factors eroding value, particularly in a low oil price environment.
Nigeria is among the countries with the highest unit cost of production globally. Producing a barrel of oil in Nigeria costs between $21 – $30 per barrel, on average. Oil prices have trended downwards since January, from a high of $63 per barrel to $23 in April and $41 currently. This means to stay profitable, oil companies require lower costs of production per barrel of oil.
To address this, Mele Kyari, group managing director, Nigerian National Petroleum Corporation in June set the target of cutting down unit production cost to $10 per barrel by 2021...for further reading, click on https://businessday.ng/energy/oilandgas/article/nigerias-10-per-barrel-production-cost-target-requires-new-process/
Source: BusinessDay Newspaper Sept 15, 2020.