News Oil & Gas

Nigeria’s Oil Production Approaches 1.7 Million Barrels per Day, Says NNPC CEO

Nigeria’s crude oil production to increase next week - Kyari, NNPC Boss

Nigeria’s oil production is on the rise, nearing 1.7 million barrels per day, revealed Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL). From a reported 1.28 million barrels per day in April, this surge marks a significant uptick in the nation’s petroleum output.

Kyari made the announcement during a high-profile stakeholders’ engagement between the Nigerian Association of Petroleum Explorationists and the NNPCL in Lagos over the weekend. He emphasized the critical role of ongoing gas infrastructure projects, aimed at facilitating the transport of 8 billion cubic feet of gas daily within the next four years through an extensive pipeline network.

Speaking at the event, Kyari addressed the challenges facing the sector, particularly oil theft and vandalism, which he stated continue to impede production growth. He stressed the urgency of addressing insecurity in the oil and gas industry to unlock its full potential.

“How do you increase oil production? Remove the security challenge we have in our onshore assets. As we all know, the security challenge is real. It is not just about theft, it is about the availability of the infrastructure to deliver the volume to the market,” Kyari emphasized.

He also highlighted the efforts undertaken in recent years to combat these challenges, including the removal of over 5,800 illegal pipeline connections and the dismantling of more than 600 illegal refineries. However, Kyari underscored the need for further action to create a conducive environment for investment and production.

“The good news is, there is substantial work that is being done by the government and I’m not going to speak about it. But I know that this will come to pass. It’s already subsiding. We are already seeing the results,” Kyari added optimistically.

Addressing the abnormal practice of resorting to barging and trucking of petroleum products due to pipeline vandalism, Kyari noted that such measures were unheard of in the 1990s, highlighting the industry’s regression in the face of persistent challenges.

Despite these setbacks, Kyari expressed optimism about the sector’s future, citing progress in curbing vandalism and ongoing infrastructure projects aimed at bolstering production capacity. He emphasized the significance of initiatives like the AKK pipeline in ensuring sustained gas supply across the country.

Kyari’s announcement comes amidst renewed hope for Nigeria’s economy, with its oil production showing a slight increase from March to April, according to OPEC’s Monthly Oil Market Report. This positive trajectory bodes well for the nation’s economic recovery efforts, underscoring the importance of addressing the underlying challenges hindering sectoral growth.

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