The Nigerian National Petroleum Company Limited (NNPC) has disclosed that it saved $3.4 billion through contract restructuring and optimisation initiatives between April 2025 and July 2026, while remitting N19.5 trillion to the Federation Account over the same period.
Group Chief Executive Officer of the company, Bayo Ojulari, announced the figures on Tuesday during the opening of the 25th Nigeria Oil & Gas (NOG) Energy Week in Abuja, where he presented the company’s operational scorecard and outlined progress in ongoing reforms.
According to Ojulari, the savings resulted from comprehensive contract reviews aimed at improving operational efficiency, reducing costs and strengthening value delivery to the federation.
He said the reforms also translated into stronger government revenues, with the N19.5 trillion remitted representing a 21.8 per cent year-on-year increase.
Ojulari further revealed that the national oil company maintained 100 per cent compliance with its joint venture cash call obligations from the 2025 financial year through June 2026.
However, he noted that many industry partners had failed to meet their own funding commitments. Of the 27 joint venture partners, only six were fully compliant, while 13 made partial payments averaging 72 per cent compliance. Eight others remained significantly in default, recording an average payment rate of only 14 per cent.
He said NNPC had begun invoking Joint Operating Agreement provisions against defaulting partners, stressing that the company had adopted a zero-tolerance approach to persistent non-compliance.
Operationally, the company recorded a six per cent increase in crude oil production and an 8.1 per cent growth in gas production during the review period.
Ojulari disclosed that crude oil output had risen to 1.71 million barrels per day, the highest level in five years, while NNPCL Exploration and Production Limited achieved a record production level of 365,000 barrels per day.
Gas production also climbed to 7.5 billion standard cubic feet per day following the completion of the River Niger crossing on the Ajaokuta-Kaduna-Kano pipeline and the inauguration of the ANOH Gas Plant.
The NNPC chief also highlighted strategic partnerships concluded over the past year, including a long-term gas supply agreement with Nigeria LNG, deepwater investments valued at over $20 billion, refinery partnerships and industrial gas projects.
He identified seven strategic projects expected to drive future production growth through 2027, including the UTM Floating LNG project, OB3 East-West Connector, AKK Pipeline, refinery enhancement projects, Zabazaba deepwater development, Owowo field and the BSWAP project.
Ojulari reiterated that NNPC’s focus remains on strengthening collaboration across the industry while supporting Nigeria’s target of producing two million barrels of crude oil per day.
