The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has announced that crude oil production in Nigeria is approaching 1.7 million barrels per day.
This increase is a significant boost from the 1.28 million barrels reported in April. Kyari highlighted that the decline in crude oil production is primarily due to oil theft and vandalism, emphasizing the urgent need to address security challenges in the oil and gas sector.
He stressed that resolving these issues is crucial for attracting investments and increasing production. Kyari also mentioned the efforts made by the government to combat pipeline vandalism and illegal refineries, expressing optimism that the situation is improving. Additionally, he acknowledged the reliance on barging and trucking for oil transportation, which is not ideal or cost-effective.
Despite the challenges, Kyari remains hopeful that the government’s ongoing work will yield positive results and lead to a more stable and secure oil industry.
According to the report, oil production has fluctuated between 1.3mb/d and 1.2mb/d since 2023.
In early 2023, OPEC reported that production stood at 1.2mb/d. However, it improved to 1.3mb/d by the fourth quarter and remained at that level until March 2024, when it dropped back to 1.2mb/d. As of now, production has not yet reached 1.7mb/d, according to OPEC’s statistics.
Kyari also highlighted the importance of the AKK pipeline in discussions about developing the necessary infrastructure for gas supply. He emphasized that the only remaining task to connect the east and west is a 2.7 km river crossing. He assured that this would be completed by the end of May or June, enabling the flow of gas from the east to the west.
During the discussion, the President of NAPE, Abiodun Ogunjobi, emphasized the need for upgrading existing gas infrastructure and adding new ones to ensure efficient gas production and utilization.
Additionally, the Chairman of NAPE’s Board of Trustees, George Osahon, stressed the significance of the NNPCL as the driving force behind oil and gas exploration in Nigeria. Osahon urged Kyari to provide industry support in areas such as technical training and data availability for research purposes.
Similarly, the immediate Past BOT Chairman, Chief Chamberlain Oyibo, highlighted the need for the implementation of effective policies and incentives to improve the nation’s declining reserves and production.
