Nigeria is exploring options to increase crude oil production amidst challenges facing producing companies in the country. The Minister of State for Petroleum (Oil), Heineken Lokpobiri, said the plan to ramp up production remains on course.
While the Independent Petroleum Producers Group (IPPG) and Oil Producers Trade Section (OPTS) had earlier engaged the National Assembly (NASS) in a bid to stabilise production, Lokpobiri said the government would fast-track every process that would enable producers to add to the production figure.
Although current oil production hovers at 1.3 million barrels per day (bpd), targets in the 2024 budget stand at 1.78 million bpd. Most stakeholders had insisted that the country, given current indications, would not meet the target but the state oil firm, Nigerian National Petroleum Company Limited insisted that pushing the production to 1.78 million and two million barrels per day would not be difficult to achieve.
But this is coming at a time when most investors are expressing concerns over the operating environment in the country even though most local refineries are already importing crude oil to survive.
Lokpobiri stated on Monday that the government engaged with key industry players to find leeway to the production challenges. According to him, the federal government is fostering a collaborative push towards enhanced crude production even as stakeholders were willing to bolster our efforts.
Lokpobiri said: “During these discussions, I conveyed President Tinubu’s anticipation for dialogues centered on productivity enhancement especially as the Petroleum Industry Act (PIA) has catalysed a transformative shift in our sector, aligning interests across the board.
“A confidential exchange with Total Energies solidified their commitment to drill, and I assured them of our readiness to fast-track all processes.
“Our commitment is resolute, aiming for swift implementation and aligning efforts with national goals. As we traverse this collaborative journey, the shared vision is clear – a thriving oil sector benefiting all stakeholders,” he said.
Lokpobiri stated that the launch of Operation Delta Sanity by the Nigerian Navy strengthened the drive for an increase in crude production. He disclosed that he had engaged with the Turkish Government for the adoption of their home-grown technology in securing oil installations in Nigeria.
“These activities dominated my activities last week as we continue to progress towards the transformation of our oil sector,” Lokpobiri said.
Chairman of IPPG, Abdulrazaq Isa, highlighted the persistent challenges in the sector, including investor uncertainty, global energy transition, and insecurity in the Niger Delta.
Isa had said: “To enhance the competitiveness of the industry to attract the level of funding required to fully optimise our vast hydrocarbon resources for today and future generations, there is a need to enhance security across the Niger Delta to safeguard and build a conducive operating environment to stem crude theft and sustainably address the unprecedented production decline witnessed in recent years.”
