The Federal Government has announced an ambitious initiative to increase Nigeria’s crude oil production by one million barrels per day within the next 12 to 24 months. This plan, aimed at addressing significant challenges in the oil sector, including oil theft, pipeline vandalism, and outdated infrastructure, seeks to attract much-needed investment.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently reported a decline in production, dropping from 1.571 million barrels per day in August to 1.544 million in September, a 1.68% decrease. In response, the government is implementing targeted interventions to boost production levels.
At the launch of “Project 1MMBPD,” marking NUPRC’s three-year anniversary, President Bola Ahmed Tinubu, represented by Senator George Akume, emphasized the initiative’s importance for enhancing national revenue and economic growth. “Project one million barrels per day is a giant step forward for our oil and gas industry,” Tinubu stated, highlighting the goal of ensuring Nigeria’s continued significance in the global energy market.
Calls for Higher Production Targets
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, argued that the current target of one million barrels per day is inadequate, advocating for higher production goals. “For a country that once produced over two million barrels per day, the present target is unacceptable. We should be aiming for 2.5 million in the short term and four million barrels per day in the long term,” he asserted.
Recent Divestment Developments
Engr. Gbenga Komolafe, Chief Executive of NUPRC, also announced that the government has blocked Shell’s $2.4 billion divestment of its onshore and shallow water assets to local consortium Renaissance. However, four other divestment applications received approval, including ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy. Komolafe confirmed that out of five divestment applications, four met regulatory requirements and secured ministerial consent, paving the way for increased investment and activity in the sector.