Oil Production Nears 1.7 Million Barrels Per Day – NNPC

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Nigeria’s oil production is approaching 1.7 million barrels per day (mbpd), up from 1.28 million barrels per day in April, according to Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL). Kyari shared this update during a stakeholders engagement with the Nigerian Association of Petroleum Explorationists in Lagos on Saturday.

Kyari also mentioned that critical gas infrastructure projects are underway, aiming to transport 8 billion cubic feet of gas daily through an extensive pipeline network within the next four years.

Despite progress, Kyari highlighted ongoing challenges, including oil theft and vandalism, which continue to impact production. He emphasized the need to address security issues in the oil and gas sector to ensure steady production and infrastructure reliability.

“To increase oil production, we must address the security challenges with our onshore assets. The security threat is real. It’s not just about theft but also about maintaining infrastructure to deliver volume to the market,” Kyari said. He noted that in the past two years, over 5,800 illegal connections were removed from pipelines, and more than 600 illegal refineries were dismantled.

Pipeline vandalism has forced many to resort to barging, with transportation costs rising to $21 per barrel. Kyari pointed out that such measures were not necessary in the 1990s.

However, he also shared positive news, indicating that significant work by the government is yielding results, with current production nearing 1.7 mbpd. He recalled that in April 2020, production peaked at 2.2 mbpd due to reduced criminal activity during the COVID-19 pandemic.

Kyari discussed the importance of the AKK pipeline for developing the infrastructure necessary for gas supply. He assured that a crucial 2.7 km river crossing, needed to connect the east and west, would be completed by the end of May or June, enabling gas flow across the regions.

Abiodun Ogunjobi, President of NAPE, stressed the importance of upgrading existing gas infrastructure and adding new ones for efficient gas production and utilization. George Osahon, Chairman of NAPE’s Board of Trustees, highlighted the role of NNPCL in oil and gas exploration and urged for industry support in technical training and research.

Chief Chamberlain Oyibo, the immediate past BOT Chairman, called for good policies and incentives to address the declining reserves and production. He encouraged industry stakeholders to continue production efforts.

OPEC’s Monthly Oil Market Report for May showed a slight increase in Nigeria’s oil production, rising from 1.23 mbpd in March to 1.28 mbpd in April, adding 50,000 barrels daily. Kyari’s update that production is nearing 1.7 mbpd is seen as a positive development for Nigeria’s economy.

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