Nigeria’s Defense Minister Projects 1.9 Million Barrels per Day in Year-End Oil Production
Nigeria’s Defense Minister, Bello Matawalle, has expressed optimism that the country’s oil production will reach 1.9 million barrels per day by the end of the year.
In a recent interview with the News Agency of Nigeria (NAN), he credited the federal government’s commitment to combating crude oil theft as a key factor in boosting production.
Matawalle highlighted the government’s relentless efforts in curbing crude oil theft, citing a decline in such activities in the Niger Delta region.
The Minister acknowledged that prior to the government’s intervention, oil theft had contributed to a production drop to around one million barrels per day.
The Defense Minister outlined the proactive measures taken by the federal government, including joint military operations against oil thieves.
He emphasised the destruction of illegal installations, the arrest of perpetrators, and the collaborative sharing of intelligence to address the challenges.
While the Defense Minister expressed confidence in reaching the 1.9 million barrels per day target, recent data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated that as of October 2023, the country’s crude oil production stood at 1.5 million barrels per day.
This suggests a significant increase would be required to achieve the projected year-end goal.
The report highlighted the Nigerian National Petroleum Company Limited’s (NNPCL) weekly data releases on crude oil theft in the Niger Delta region.
The figures have shown fluctuations, with the most recent data revealing 227 cases recorded between October 28 and November 3, an increase from the previous week’s 144 cases.
The urgency to boost crude oil production aligns with Nigeria’s OPEC quota of 1.7 million barrels per day. Failure to meet this quota by year-end could result in a revised production limit of 1.38 million barrels per day from January 2024, potentially impacting oil revenues and exacerbating foreign exchange shortages.
Source: Nairametrics
