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Home In the News

Oil production nears 1.7mbpd – NNPC

Ademola Damilola by Ademola Damilola
May 20, 2024
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Oil production nears 1.7mbpd – NNPC
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According to Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Nigeria’s oil production has surged towards 1.7 million barrels per day (mbpd) from 1.28 mbpd in April. Kyari made this announcement during a stakeholders’ engagement between the Nigerian Association of Petroleum Explorationists and the NNPCL held in Lagos.

Kyari highlighted ongoing critical gas infrastructure projects aimed at transporting 8 billion cubic feet of gas daily through an extensive pipeline network within the next four years. He attributed the decline in Nigeria’s crude oil production to oil theft and vandalism, emphasizing the need to address security challenges to boost production.

Due to pipeline vandalism, Kyari noted that the industry has resorted to expensive alternatives like barging, costing as much as $21 per barrel to transport oil to terminals. He emphasized that such methods were not considered in the past and underscored the urgency of resolving security issues to attract investment in oil production.

However, Kyari expressed optimism, citing government efforts to address security challenges and improve infrastructure. He noted progress in curbing vandalism and expressed confidence that production would continue to improve.

Kyari also highlighted the significance of the AKK pipeline in ensuring gas supply and mentioned ongoing efforts to connect the east and west regions through a river crossing project.

The stakeholders, including the President and Chairman of the Nigerian Association of Petroleum Explorationists, stressed the importance of upgrading existing infrastructure and implementing policies to boost oil and gas production.

Recent data from the Organisation of the Petroleum Exporting Countries (OPEC) indicates a marginal increase in Nigeria’s oil production, which could potentially benefit the nation’s economy. Kyari’s announcement of nearing 1.7 mbpd production reflects positive progress in the oil sector.

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