The Nigerian Upstream Regulatory Commission (NUPRC), has said, Nigeria’s crude oil production in the month of April, 2024, rose marginally by four per cent to 1.28 million barrels per day compared to 1.23mbpd recorded in March.
This is even as the minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, said, the government is taking strategic steps to hit two million barrels of oil production by the end of 2024.
Unfortunately the lack of improvement in production came despite the federal government’s effort to boost oil production to meet the 1.78mbpd target for funding the 2024 budget.
When added to condensate oil, production was 1.447 million barrels per day compared to 1.438mbpd recorded in the previous month. The production figures with condensate were 1.539 million barrels per and 1.643 million barrels per day in the months of February and January respectively.
The minister however explained that the drop in oil production in the last few months was caused by issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in the country.
Lokpobiri, in a statement by his media aide, Nnemaka Okafor assured that measures were being taken to address the situation to, ‘“not only restore production to previous levels, but to also increase it. The Minister is also pleased to announce that the issues have been adequately addressed, and production is expected to return to its previous levels in the coming days. He anticipates that Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day (bpd) prior to these developments, will soon be restored.”
“Furthermore, the Ministry of Petroleum Resources is actively engaged in policy evolution aimed at maximising the utilisation of all available wells in Nigeria. This strategic approach will enable the country to ramp up production, thereby generating vital revenue to stabilise the nation’s foreign exchange reserves. The increased revenue will also empower the government to fulfil its commitments in providing essential infrastructure, as outlined in the 2024 budget”, she added.
The government has also blamed oil theft and pipeline vandalism for the industry’s failure to the country’s OPEC quota of 1.5 million barrels per day.
Lokpobiri explained that, “the quickest way to solve our economic challenges is through the oil and gas sector. Today, oil sells for over $90 per barrel and if we ramp up production and we reduce the level of oil theft and pipeline vandalism, we will be able to raise the requisite money to be able to fund not only our budget, take care of our forex problems and then ensure that we stabilise our economy.
“There is no country in the world that doesn’t prioritise security and investment in its oil assets. Part of our own objectives is to reduce pipeline vandalism and oil theft to the barest minimum. We cannot completely eliminate it but working together with you will be able to reduce it to the barest minimum. So, we will be able to benefit from the production of oil and gas that is going on.”