An African National Oil Company (NOC) is producing over 2million barrels of crude oil per day but is bedeviled with very high cost of crude oil production. Blessed with abundant oil resources, the current national government of the NOC is very concerned with this phenomenon of high production cost of over $30.00 per barrel and is desirous to bring the price down to $15.00 per barrel or less. The author of this paper is given the herculean task to diagnose the cause of the high production cost and then propose ways to reduce the cost to under $15.00 per barrel. The approach deployed during the diagnosis phase included having stakeholders’ engagement covering the International Oil Companies (IOCs), the Independent Producers Group, Industry Regulators, and the contracting community. This paper is a summary of the diagnosis of the so called ‘NOC Cost Premium Factors’ and as well as the cost reduction recommendations currently being implemented, which can be of benefit to other NOCs having similar issues and industry in general.