Nigeria’s Oil Production Sees Marginal Rise Amid Lingering Concerns
Nigeria’s oil sector received a modest boost in April, with daily production inching up from 1.23 million barrels per day (mbpd) in March to 1.28 mbpd, as reported by the Organisation of the Petroleum Exporting Countries (OPEC) in its Monthly Oil Market Report for May.
This uptick follows a recent period of decline, signaling a potential turnaround for the country’s oil industry, which has faced challenges in maintaining output levels. Nigeria’s crude production had dipped from 1.32 mbpd in February to 1.23 mbpd in March, according to OPEC’s assessment.
The decline in production has sparked concerns among stakeholders, who worry about the impact on government revenue and the nation’s economy. Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria, highlighted the substantial loss incurred daily due to the country’s underproduction, estimating the shortfall at around 500,000 barrels per day.
Attributing the drop in production to issues with the Trans Niger Pipeline and maintenance activities by oil companies, the Federal Government assured that efforts were underway to address these challenges. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, underscored the government’s commitment to resolving the situation and restoring production to previous levels.
Lokpobiri’s statement in April reassured Nigerians that measures were being implemented to overcome the hurdles faced by the oil sector. He cited progress in addressing issues with the Trans Niger Pipeline and expressed optimism about returning production to its former levels in the near future.
Amidst efforts to boost production, Lokpobiri emphasized the government’s intention to address idle oil wells and licenses, signaling a commitment to optimizing the country’s oil resources. Revoking idle licenses and reallocating them to capable individuals represents a strategic move aimed at maximizing Nigeria’s oil potential.
As Nigeria navigates its oil production challenges, stakeholders remain vigilant, hoping that the recent uptick in output will mark the beginning of a more stable and prosperous phase for the country’s vital oil industry.
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