- Targets 2m barrels by Dec.
Nigeria may earn more revenue from the oil and gas sector as the Nigerian National Petroleum Company Ltd, in collaboration with stakeholders in the sector, has raised crude oil production to 1.8 million barrels per day.
The achievement was announced on Thursday during a meeting held at the Oil Production War Room at the NNPC Headquarters in Abuja, yesterday, also assured that output will hit two million barrel by year end.
Nigeria has been battling crude theft in its Niger Delta production region, sabotage, and local unrest, which has hampered output growth.
SPONSOR AD
At a current price of $78.6 per barrel, a consistent crude oil production at 2 million in 2025 will lead to the $157 million income per day translating to over $57.4 billion by the end of the year, all things being equal (prices and quantity stay the same).
The meeting presided over by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri was attended by the Chairman of the NNPC Ltd Board, Chief Pius Akinyelure; the Group Chief Executive of NNPC Ltd, Mele Kyari, the Chief Financial Officer, Mr Adedapo Segun, the Executive Vice President, Downstream, Mr Isiyaku Abdullahi, the Executive Vice President Upstream, Udobong Ntia, and the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), Mr. Bala Wunti, among others.
Lokpobiri described the feat as remarkable as NNPC Ltd has demonstrated that it has the potential to achieve and even surpass the two million barrels per day crude oil production target for December this year.
The feat will be greatly welcomed by the federal government, which is exploring every means to increase revenue earnings ahead of the N48 trillion budget estimates for 2025.
Recall that the Nigerian government’s revenue from the upstream oil industry in 2023 was $30.852 billion, a 13.7% decrease from 2022. However, Nigeria’s total crude oil export revenue in 2023 was N29 trillion, a 37% increase from 2022
Dividend payments and sales of federation crude oil and gas, one of the sources of revenue, amounted to $5.01billion in 2023, a sharp 68% plunge compared with $13.435billion received for the same subhead in 2022.
Lokpobiri said, “Today we are grateful that we have crossed a line of 1.8 million barrels per day, and also crossed 7.4 BCF of gas, this is our agenda. Today, the entire team is fully aligned and committed to delivering greater value, and we’re committed to delivering two million barrels by the end of the year.
“This is possible. This is achievable. I’m a very proud minister. We can do it again. On behalf of the Ministry of Petroleum Resources, on behalf of the Federal Government of Nigeria, let me formally congratulate the chairman, board members, and the management of NNPC for navigating this process.”
In his remarks, the NNPC board chairman said this is just the beginning of a greater feat to be achieved by the NNPC Ltd.
He urged the management and staff members of the NNPC Ltd not to relent as more needed to be done to surpass the expectations of the shareholders of the company.
In his remarks, Kyari said the interventions across every segment of the production chain, supported by rigorous pipeline monitoring from security agencies, had been critical to the recovery.
“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are in the short and long terms acceptable to our shareholders,” Kyari said.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
