As the outlook in the global oil market in terms of prices remains not bright for now, the Federal Government has raised the Nigerian National Petroleum Company Limited’s (NNPLC’s) daily oil production target to 2.5 million barrels.
The decision is expected to help the government bridge the oil sector’s revenue projections gap in the 2025 budget and by implication, aid in funding projects and programmes outlined in the fiscal year for implementation.
The
As the outlook in the global oil market in terms of prices remains not bright for now, the Federal Government has raised the Nigerian National Petroleum Company Limited’s (NNPLC’s) daily oil production target to 2.5 million barrels.
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The decision is expected to help the government bridge the oil sector’s revenue projections gap in the 2025 budget and by implication, aid in funding projects and programmes outlined in the fiscal year for implementation.
The Minister of State for Petroleum Resources (Oil), Mr. Heineken Lokpobiri, spoke on the upward review of the state-controlled oil company’s daily output during an interview on the sidelines of the Oil Technology Conference (OTC) Africa Energy Forum (AEF) with the theme “Africa’s Energy Investment Drive Amid Global Transition to Green Minerals and Clean Energy,” in Houston, Texas.
According to him, though President Bola Tinubu gave the new NNPCL’s management a mandate to grow oil production to two million barrels by this year, he has increased the target to 2.5 million bpd..
Lokpobiri clarified: “When the new NNPC management visited me, I increased their oil production target to 2.5 million bpd from the initial two million barrels given to them by the President.”
The minister maintained that he believed the target set by the President could be met and even surpassed because during COVID-19, when there was no new investment, oil production grew to 2.5 million bpd, stressing that “the 2.5 million bpd oil production is easily realisable because all the bottlenecks against our oil production are being addressed.”
He recalled that for over 10 years, there was no new investment in the oil and gas sector and that the situation has changed now as a result of the oil sector reforms of the present administration.
Lokpobiri further noted that vandalism and oil theft challenges, which have long discouraged new investors to explore the opportunities in the hydrocarbon resources sector and boost oil production, had abated through various government policies.
He explained that when he was appointed as a Minister, Nigeria’s daily oil production stood at one million bpd, but that currently the output had increased to 1.8 million bpd, justifying his believe that the NNPCL’s management has all it takes to meet the new target
In addition, the minister disclosed that the ‘Drill or Drop’ policy, as contained in the Petroleum Industry Act (PIA) 2023, was now being implemented to enhance exploration and production (E&P) operations in the industry.
Lokpobiri stressed that for any quantum of oil taken now, the PIA stipulates that the entity must drill to replace it as part of seismic activity.
spoke on the upward review of the state-controlled oil company’s daily output during an interview on the sidelines of the Oil Technology Conference (OTC) Africa Energy Forum (AEF) with the theme “Africa’s Energy Investment Drive Amid Global Transition to Green Minerals and Clean Energy,” in Houston, Texas.
According to him, though President Bola Tinubu gave the new NNPCL’s management a mandate to grow oil production to two million barrels by this year, he has increased the target to 2.5 million bpd..
Lokpobiri clarified: “When the new NNPC management visited me, I increased their oil production target to 2.5 million bpd from the initial two million barrels given to them by the President.”
The minister maintained that he believed the target set by the President could be met and even surpassed because during COVID-19, when there was no new investment, oil production grew to 2.5 million bpd, stressing that “the 2.5 million bpd oil production is easily realisable because all the bottlenecks against our oil production are being addressed.”
He recalled that for over 10 years, there was no new investment in the oil and gas sector and that the situation has changed now as a result of the oil sector reforms of the present administration.
Lokpobiri further noted that vandalism and oil theft challenges, which have long discouraged new investors to explore the opportunities in the hydrocarbon resources sector and boost oil production, had abated through various government policies.
He explained that when he was appointed as a Minister, Nigeria’s daily oil production stood at one million bpd, but that currently the output had increased to 1.8 million bpd, justifying his believe that the NNPCL’s management has all it takes to meet the new target
In addition, the minister disclosed that the ‘Drill or Drop’ policy, as contained in the Petroleum Industry Act (PIA) 2023, was now being implemented to enhance exploration and production (E&P) operations in the industry.
Lokpobiri stressed that for any quantum of oil taken now, the PIA stipulates that the entity must drill to replace it as part of seismic activity.
