BUSINESS NIGERIA

Nigeria Wallstreet Journal

Nigeria’s Oil Output Nears 1.7 Million Barrels Per Day, Says NNPCL Chief

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

Kyari addressed the persistent issue of oil theft and vandalism, which has significantly hampered Nigeria’s crude oil production. He stressed the importance of resolving security challenges in the oil and gas sector to boost production. “To increase oil production, we must remove the security challenge in our onshore assets. The security issue is real, affecting infrastructure and market delivery,” he said. Over the past two years, NNPCL has dismantled more than 5,800 illegal connections and over 600 illegal refineries.

Due to pipeline vandalism, many have resorted to costly and inefficient methods such as barging and trucking petroleum products. “Barging is not economical. In 1991, we didn’t think of putting oil on trucks, but that’s our reality today,” Kyari noted. Despite these challenges, Kyari expressed optimism, citing substantial government efforts to combat these issues. “We are already seeing the results. Our production is inching towards 1.7 million barrels per day. We should be able to take control of this infrastructure.”

Kyari also highlighted the significance of the Ajaokuta-Kaduna-Kano (AKK) pipeline in ensuring gas supply across Nigeria. He mentioned that the final task to connect the east and west involves a 2.7 km river crossing, expected to be completed by the end of May or June, enabling the flow of gas from the east to the west.

Abiodun Ogunjobi, President of NAPE, underscored the importance of upgrading existing gas infrastructure and adding new ones for efficient gas production and utilisation. George Osahon, Chairman of NAPE’s Board of Trustees, stressed the vital role of NNPCL in oil and gas exploration in Nigeria and called for industry support in technical training and research data availability. Chief Chamberlain Oyibo, immediate past BOT Chairman, emphasized the need for implementing good policies and incentives to address the decline in the nation’s reserve and production.

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