NNPCLtd. targets 2m barrels per day oil production amid rising oil theft

The Nigerian National Petroleum Company Limited (NNPCLtd.) says it is working hard to scale up oil production to two million barrels per day.

The national oil company said it would be relying on peaceful resolution of contract disputes with some oil majors to achieve the goal.


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The Organization of Petroleum Exporting Countries (OPEC) and its allies (OPEC+) have increased Nigeria’s crude oil output quota to 1.830 million barrels per day (mb/d) effective from September 2022. The August 2022 quota is 1.826mb/d.

However, the country has been struggling to meet up with the quota and is currently doing slightly above 1.1mbp as a result of rising oil theft.

The Chief Executive Officer of the NNPCLtd, Mele Kyari, gave his assurance at the National Association of Energy Correspondents’ (NAEC) strategic conference in Lagos on August 25, 2022 that the country would meet the two million daily crude production target.

Kyari, discussing the theme, ‘Energy Transition: Shaping the Future Of Nigeria’s Energy, an Appraisal of PIA, Evolving Benefits and Challenges’, admitted that Nigeria had been producing below its OPEC target due to security challenges, heavy oil theft, fiscal policy deficit and financing gap, but said all the problems were being addressed.

He said a robust engagement with security agencies was ongoing to decisively deal with oil theft, and attract investors, especially in the deepwater space.

The NNPCLtd. recently recompensed oil supermajors, including Royal Dutch Shell Plc and Exxon Mobil Corp, a sum of about $3.02 billion, drifting nearer to clearing a heap of accumulated operating expenses it owed them since a decade ago.






     

     

    The payment was made via a five-year crude oil sales pact negotiated in 2016 by the then Minister of State for Petroleum Resources, Ibe Kachikwu.

    The NNPC Ltd. runs joint ventures with global energy giants like Chevron Corp., Shell, Exxon Mobil, Eni SpA and Total SE, which pump almost 80 per cent of Nigeria’s output.

    Kyari expressed optimism that the payment to the oil companies would boost commitment to further exploration activities in Nigeria.

    He also said efforts were ongoing to ensure smooth energy transition in utilising the country’s vast gas deposits.

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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