Contents of Nigeria’s new national petroleum policy recently approved by the Federal Executive Council (FEC) have 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, THISDAY reports.

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 Arabia 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.

Revealing the government’s intention about cost on production, the policy stated that certain measures such as a restructuring of the Nigerian Petroleum Investment Management Services Limited (NAPIMS) would be undertaken to drive up efficiency in the management of upstream oil projects. Apart from restructuring NAPIMS to drive down cost, the policy also indicated that resolving the Niger Delta challenges would be useful in this regard.