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  • NNPC targets two million barrels oil production daily

    NNPC targets two million barrels oil production daily

    NNPC targets two million barrels oil production daily

    31st July 2024

    Mele Kyari

    Group CEO, NNPCL, Mele Kyari

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    The Nigerian National Petroleum Company Limited has announced its goal to increase crude oil production to two million barrels per day by the end of the year.

     

    The country’s daily production rose from 1.27 million barrels in June to 1.6 million in July, according to the Nigerian Upstream Petroleum Regulatory Commission.

     

    Speaking during a meeting with Maritime Stakeholders at the Nigerian Navy Headquarters on Tuesday, the Group Managing Director of NNPC, Mele Kyari, expressed optimism that the target would be met, emphasising that NNPC was fully committed to achieving it.

     

    Represented by the Managing Director of Pipeline NNPC, Folorunsho Karim, the oil firm’s boss urged security agencies to continue their efforts against oil theft and pipeline vandalism to help the company meet its target.

     

    He said, “The target is to increase production to two million barrels by the end of the year, and we are fully committed to doing that. I appreciate the support of the Nigerian Navy in making this possible.

     

    “They have been providing significant support, which has resulted in a reduction in oil theft. Pipeline vandalism has also decreased significantly, and there is a lot currently happening in the industry. We hope to sustain this progress to achieve our target of two million barrels per day by the end of the year.”

     

    The Chief of the Naval Staff, Vice Admiral Emmanuel Ogalla, said Nigeria’s development has faced numerous complex security challenges over the past few decades, including violent agitations, oil theft, pipeline vandalism, and piracy/sea robbery.

     

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    Ogalla added that these issues were driven by the proliferation of small arms and light weapons, communal clashes, poverty, and unemployment.

     

    “The traditional methods of addressing these security challenges have not yielded the desired results. Hence, the meeting also aimed to address emerging security issues arising from the implementation of the Petroleum Industry Act.

     

    “The Federal Government’s drive to develop the nation’s blue economy requires the support of all stakeholders,” he added.

     

    He stated that the Navy was working to ensure its operations did not hinder operators but instead supported them in performing their duties and optimally producing.

     

    Ogalla said, “Providing security is a way to promote ease of doing business because if there is no security, operators cannot function.

     

    “We also ensure that our arrests and detentions do not impede legitimate business operators. When we make arrests, we conduct preliminary investigations quickly and release vessels if the information is found to be incorrect, so as not to disrupt businesses. This is our general contribution.

     

    “We aim to promote ease of doing business by ensuring our operations and patrols do not create problems for operators. Instead, we support them by assuring them of protection from criminal elements who seek to disrupt business activities in Nigeria.”

  • Nigeria produced 236m barrels of crude in six months – NUPRC

    Nigeria produced 236m barrels of crude in six months – NUPRC

    Nigeria produced 236m barrels of crude in six months – NUPRC

    Nigeria produced a total of 236,229,281 barrels of crude oil in the first half of 2024, The PUNCH has learned.

     

    Data obtained by our correspondent from the Nigerian Upstream Petroleum Regulatory Commission confirmed that 44.2 million barrels of crude were produced in January while the country pumped 38.3 million barrels of oil in February.

     

    Similarly, 38.1 million barrels were produced in March, and the monthly production for April was 38.4 million.

     

    In May, 38.8 million barrels were pumped and 38.3 million barrels were achieved in June.

    In the same period in 2023, the country’s total oil output from January to June was 219.5 million barrels, 16.73 million lower than what was recorded in 2024.

     

    However, during the first six months of 2020, the country produced 302.42 million barrels of crude oil, representing 66 million barrels more than what was obtained within the same period this year.

     

    This is an indication that the nation’s oil production has been fluctuating, declining more than appreciating over the years.

    Data from NUPRC showed that the country produced an average of 1.43 million barrels of crude oil per day in the first month of the year, being the highest average daily crude production within the six months.

     

    In February, the daily oil production dropped to 1.32mbpd and dropped further to 1.23mbpd in March.

     

    Efforts by the government to stop the figures from dipping further may have yielded results as the daily production appreciated marginally to 1.28mbpd in April.

    However, the figure fell again to 1.25mbpd in May, at a time the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, said the country’s daily oil production was nearing 1.7 million barrels.

     

    The month of June saw the production increasing marginally to 1.28mbpd, giving hope of recovery to the Nigerian government, whose economy depends heavily on crude oil.

     

    Recently, Kyari lamented the negative impacts of oil theft and vandalism on the nation’s economy, saying the act discouraged investments in the oil and gas sector.

    How do you increase oil production? Remove the security challenge we have in our onshore assets. As we all know, the security challenge is real. It is not just about theft; it is about the availability of the infrastructure to deliver the volume to the market.

    No one will put money into oil production when he knows the production will not get to the market. In the last two years, we removed over 5,800 illegal connections from our pipelines. We took down over 6,000 illegal refineries—cooking pots or whatever they were. You simply cannot get people to put money until you solve that problem,” Kyari stated.

     

    During a meeting of economic stakeholders with the Senate Committee on Finance on Monday, Kyari said Nigeria would soon begin the production of 2mbpd crude oil.

     

    “Mr Chairman and members of the joint committee, let me just confirm that NNPC and the oil and gas industry are very critical in bringing a turnaround in our current economic situation, and we understand the importance of this. We are taking every step that is practical for us to achieve this.

    We have already seen growth in our oil and gas production because of certain actions that Mr President personally took, and also, the very mere truth that we have also declared war on production activities, and this is yielding the required results.

     

    “The combination of these two has now seen us restoring production in our country, and we believe that, as the minister has said, we will soon hit the target of two million barrels of oil production per day,” Kyari assured.

     

    The NNPC GCEO did not disclose when the average daily crude production would skyrocket from the current 1.2 million barrels to two million barrels.