The Vice-President, Prof. Yemi Osinbajo says the oil production cut deal by the Organisation of Petroleum Exporting Countries and its allies has resulted in lower revenue generation for the Federal Government.
Osinbajo said the Ministry of Petroleum Resources had a mandate to drastically reduce the unit cost of crude oil production in the country in order to increase government revenue.
He said the collapse in crude oil demand due to the COVID-19 pandemic caused the recent sudden slump in oil prices.
Osinbajo expressed confidence that the country would achieve the desired goal of finding more hydrocarbon deposits, notwithstanding the curtailment in production.
The Vice President noted that the increased level of uncertainty about oil and gas demands and the emerging technologies in alternative energy had become important elements in making decisions on optimal exploitation of petroleum resources.
He added that another key mandate of the petroleum ministry is to ensure the growth of the country’s reserves to at least 40 billion barrels of crude as well as the production capacity to three million barrels of crude per day.