The Federal Government has projected that based on the potential positive impacts of its current reforms, Nigeria’s oil production could hit 2.7 million barrels per day (mbp/d) by 2027.
A news report from Bloomberg quoted the Special Adviser on Energy to the President, Olu Verheijen, as making the projection during an interview, hinging her forecast on improved security in the oil producing fields and transportation axis of the upstream sector of the hydrocarbon resources industry.
According to her, the improve crude oil output will be partly driven by oil condensate, which allows Nigeria to meet her OPEC+ 1.5mbp/d crude oil target.
She clarified: “The OPEC quota does not include condensate. The target we’ve set for ourselves is a combination of condensate and crude. The idea is to try and demonstrate the capacity for a higher quota as required.”
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Verheijen noted that the country’s oil production had risen from 1.1 mbp/d in 2022 to 1.67mbp/d in December 2024, with 1,48mbp/d being crude oil.
According to her, the removal of fuel subsidy has also impacted on the downstream market of the oil and gas industry, making the market commercially viable for the first time over the years.
She said: “The removal of fuel subsidy could also foster further investment in refineries. What that has done is that it allowed the downstream and mainstream of that sector to now become commercially viable for the first time in decades.”
