The Federal Government has revealed an ambitious plan to increase Nigeria’s crude oil production by one million barrels per day within the next 12 to 24 months.
This strategy aims to tackle key challenges in the sector,
such as oil theft, pipeline vandalism, outdated infrastructure, and attracting
investment.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
reported a dip in production from 1.571 million barrels per day in August to
1.544 million in September, representing a 1.68% decline. Despite this, the
government’s new initiative promises to drive production back up through a
series of targeted interventions.
Speaking at the launch of “Project 1MMBPD” to mark NUPRC’s three-year anniversary, President Bola Ahmed Tinubu, represented by the Secretary to the Government of the Federation, Senator George Akume, emphasized that increasing oil production is key to boosting national revenue and accelerating economic development.
The President noted, “Project one million barrels per day is
a giant step forward for our oil and gas industry, designed to grow
sustainably. By enhancing domestic energy security and supporting economic
vibrancy, this initiative will ensure Nigeria remains a crucial player in the
global energy landscape.”
Calls for Higher
Production Targets
Minister of State for Petroleum Resources (Oil), Senator
Heineken Lokpobiri, also stressed that the current target of one million
barrels per day is insufficient, urging industry stakeholders to aim for higher
production levels. “For a country that once produced over two million barrels
per day, the present additional one million target is unacceptable. We should
be aiming for 2.5 million in the short term and four million barrels per day in
the long term,” he said.
Four Divestment Deals
Approved, Shell Blocked
In his address, NUPRC Commission Chief Executive, Engr.
Gbenga Komolafe, announced the government’s decision to block Shell’s $2.4
billion divestment of its onshore and shallow water assets to local consortium
Renaissance. However, four other divestment deals received government approval,
including ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat
Energy.
“Out of the five divestment applications received by the Commission,
four passed the regulatory test and secured ministerial consent,” Komolafe
said. The approved deals include Equinor Nigeria Energy’s sale to Project
Odinmin Investments, Nigerian Agip Oil Company’s sale to Oando Petroleum, and
TotalEnergies EP Nigeria Limited’s sale to Telema Energies Nigeria.
Infrastructure
Challenges
Group CEO of NNPC Limited, Mallam Mele Kyari, identified
aging infrastructure and pipeline vandalism as key obstacles to increasing
output. “We are dealing with infrastructures that are over 50 years old.
Without replacing these, you cannot evacuate the additional one million barrels
of oil, especially from onshore assets,” he stated.
Need for
Modernization
UBA Group Chairman, Tony Elumelu, echoed the call for
modernization, warning that Nigeria’s oil production has been on a downward
trajectory, dropping from over two million barrels per day to below 1.5
million. Elumelu stressed that outdated infrastructure, regulatory
uncertainties, and security challenges in the Niger Delta are undermining the
nation’s oil sector and, consequently, the economy.
“As a nation, we cannot permit this decline to continue. We
must modernize our oil and gas infrastructure to safeguard our economy and
ensure prosperity for future generations,” he urged.
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