New Policy Seeks Significant Drop in Oil Production Cost to $10/bbl Projects decline in oil output from 2020 unless new reserves are discovered Chineme Okafor in Abuja Contents of Nigeria’s new national petroleum policy recently approved by the Federal Executive Council (FEC) and obtained by THISDAY has revealed that the country would be seeking
to significantly reduce the cost of producing a barrel of crude oil in her fields to $10 from the current $27, which it considers not quite competitive. By doing that, Nigeria would be seeking to reduce her current production cost per barrel
by about $17, and this could effectively make her one of the cheapest oil-producing destinations within the Organisation of Petroleum Exporting Countries (OPEC) group. At the moment within OPEC, records indicate that Saudi Ara-
bia and Kuwait have the lowest production costs at $10 and $8.50 per barrel respectively, while Nigeria, Libya, and Venezuela reportedly have the highest at $27; $23.80; and $23.50 per barrel, respectively. Nigeria is however, behind
the likes of the United Kingdom and Brazil in the production cost analysis. Both countries, according to a 2016 Wall Street Journal's survey of 12 notable oil producers, produce a barrel of crude oil at $44.33 and $34.99 respectively.
But revealing the government’s intention about cost on production, the policy, which is now awaiting federal gazetting, stated that certain measures such as a restructuring of the Continued on page 9
Forensic Accountants Back Separation of NFIU from EFCC ... Page 83 Sunday 30 July, 2017 Vol 22. No 8137
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Bala-Usman: JV Partners Sanctioned by Swiss Court for Bribing NPA Officials to Face EFCC Says agency seeking FEC's approval to deploy scanners in ports within two weeks Eromosele Abiodun The Managing Director of the Nigerian Ports Authority (NPA), Ms Hadiza Bala-Usman,
has disclosed that some of its technical partners in its joint venture companies recently sanctioned in a Swiss Court for bribing NPA officials to defraud
the federal government would be investigated and prosecuted by the Economic and Financial Crimes Commission (EFCC). Speaking on Channels
Television in Lagos on Saturday, Bala-Usman said NPA had asked for guidance from the Attorney General of the Federation on its continued relationship with
the entities in view of their sanctioning in the Swiss Court for corruption. Swiss prosecutors had last month named four former
Nigerian government officials in a multinational bribe scandal relating to contract awards at Continued on page 9
Saraki: Mistrust Triggered by Hate Speeches Caused Rejection of Power Devolution Bill Says hope not lost, as bill could be represented after more consultation Onyebuchi Ezigbo in Abuja and Hammed Shittu in Ilorin Senate President Bukola Saraki said yesterday in Ilorin that the devolution of power to the federating units, which is at the core of the mounting restructuring agitation, was rejected by the National Assembly due to suspicion and tension created lately by a torrent of hate speeches from various parts of the country. Saraki, however, explained that the power devolution bill still stood a chance in the constitution amendment process, with more consultation to enable the legislators and other stakeholders get a better understanding of the issues. He spoke after receiving a delegation of the Not-Too-Young-To- Run group in the state. The Senate and House of Representatives, which are dominated by All Progressives Congress, passed different bills last week on the alteration of the 1999 Constitution after harmonising the reports of the constitution amendment committees of both chambers. Speaking on why the devolution of power failed to get the
National Assembly’s approval, Saraki said, “We must be honest with ourselves that presently there is a lot of mistrust in the country. The air is very polluted and let’s be very frank, that blame must go round; whether it be the politicians, or some who are doing commentaries and even some of you in the media who sometimes write stories that are more like hate speeches, that are inaccurate. “I think what happened was that a lot of people misread or misunderstood or were suspicious of what the devolution was all about; whether it was the same thing as restructuring in another way or an attempt to foist confederation on the country or to prepare the ground for other campaigns now going on in the country.. And they made a lot of appeal that we had not consulted with our constituencies and you can see what is happening; there was a meeting in Kaduna yesterday (Friday) where it was clear that certain parts of the country wanted more time to understand what restructuring is for discussion. Continued on page 9
THE PREMIERE OF BANANA ISLAND GHOST FIRS Chairman, Dr. Babatunde Fowler (2nd left), his wife, Rosemary (left), Mrs. Biola Alabi (2nd right) and her husband, Mr. Mako Alabi, former MD/CEO of LASAA, at the premiere of an action-comedy film, Banana Island Ghost (B.I.G), at the Harbour Point Event Center in Victoria Island, Lagos. Biola Alabi is an executive producer of the film (More reports in THISDAY STYLE next week)