Nigeria, Africa’s greatest oil producer, has set a goal of boosting each day production by 2.7 million barrels of crude and condensate by 2027.
This was disclosed by the particular adviser on power, Olu Verheijen in a press release reported by Bloomberg.
She famous that improved safety round oil production and transportation websites is the important thing issue that helps the rise in output.
Verheijen emphasised that the rise will probably be pushed partly by oil condensate, a lighter extra risky hydrocarbon which permits Nigeria to stay largely inside its OPEC+ crude oil quota of 1.5 million barrels per day.
“The OPEC quota doesn’t embody condensate. The goal we’ve set for ourselves is a mix of condensate and crude,” she mentioned in an interview at an power convention in Dar es Salaam, Tanzania final week, “The concept is to try to exhibit the capability for a better quota as required.” she said
The particular adviser famous that Nigeria’s oil production has risen from a low of 1.1 million bpd in 2022 because the nation seeks to spice up income to deal with {economic} challenges like poverty and deteriorating infrastructure.
In December 2024, crude oil production reached 1.67 million barrels per day whereas 1.48 million barrels have been crude.
Extra insights
Nigeria is projected to grow to be a internet exporter of petroleum merchandise as Aliko Dangote’s refinery scales up production.
In accordance with Verheijen, the removing of gasoline subsidies has revitalized the downstream sector, making it commercially viable for the primary time in many years.
“The removing of gasoline subsidy might additionally foster additional funding in refineries.
“What that has achieved is allowed the downstream, mainstream downstream of that sector to now grow to be commercially viable for the primary time in many years,” she mentioned.
She added that investments in refineries at the moment are viable as a consequence of improved industrial viability within the downstream sector.
What you must know
Not too long ago, President Bola Tinubu pledged to spice up Nigeria’s crude oil production from below 1.5 million barrels per day to over 2 million bpd in 2025.
- Nevertheless, some specialists have dismissed the goal as unrealistic.
- In a latest Nairametrics highlight characteristic, Petroleum Engineer and Oil & Fuel Analyst, Dr Bala Zakka, said that whereas Nigeria has the capability to extend production, reaching the 2025 goal is unlikely as a consequence of ongoing crude oil theft within the Niger Delta and the continued exit of Worldwide Oil Corporations (IOCs) from onshore exploration.
As of November 2024, Nigeria’s crude oil production skilled a slight decline in October 2024, dropping from 1.54 million barrels per day (bpd) to 1.53 million bpd.