Tinubu’s Presidency Sees Marginal Rise in Nigeria’s Crude Oil Production
Five months into Asiwaju Bola Ahmed Tinubu’s presidency, Nigeria has experienced a marginal increase in its crude oil production, rising by 131,926 barrels per day, according to a review of data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
When Tinubu assumed office in May 2023, the daily crude oil production, including condensates, was 1,430,146 barrels.
Although fluctuations occurred over subsequent months, with June witnessing an increase to 1,499,416 barrels per day and September reaching a peak of 1,572,315 barrels per day, the country consistently fell short of its OPEC-assigned quota of 1.7 million barrels per day.
One noteworthy change implemented by President Tinubu was the separation of gas from petroleum, designating Ekperikpe Ekpo as the Minister for Petroleum Resources (Gas) and Heineken Lokpobiri as the Minister of State for Petroleum Resources—the first of its kind in Nigeria.
Lokpobiri’s primary focus was to boost crude oil production, while Ekpo aimed to transition Nigeria to a gas-based economy.
Since assuming his role, Minister Lokpobiri has been actively engaged in revitalizing Nigeria’s energy sector.
He conducted visits to refineries in August, assuring that the Port Harcourt facility would resume operations by December 2023 and the Warri refinery by Q1 2024.
September saw crucial meetings with Shell and SINOPEC, emphasizing relations and commitment to enhancing local oil production.
In October, Lokpobiri addressed a divestment disagreement between NNPCL and ExxonMobil and engaged in talks with Oando Plc to bolster their ability to manage assets previously owned by international oil corporations.
In November, Lokpobiri signed an energy cooperation Memorandum of Understanding with Saudi Arabia, fostering Nigeria’s refining capabilities.
Despite these efforts, challenges persist in meeting production targets, attributed to crude oil theft and vandalism in the Niger Delta region.
Weekly data from the Nigerian National Petroleum Company Limited (NNPCL) revealed over 5,000 crude oil theft incidents from May to November 2023.
Industry analysts emphasize the need for transparency within the oil sector to attract more investors.
Transforming the industry into an open and accessible sector, where real-time data is available, could empower investors and reshape the sector’s image.
While the administration secured $13 billion in oil and gas investments from major companies in September 2023, including Chevron, Total, Shell, and Exxon Mobil, challenges remain.
The short-term investment components in the pipeline are anticipated to deliver 2.1 million barrels per day production by December 2024, contingent on overcoming unforeseen challenges.
Source: Nairametrics
