The Nigerian National Petroleum Company Limited (NNPCL) has stated that the Federal Government of Nigeria plans to renegotiate the country’s OPEC+ production quota by November. According to the Group Chief Executive Officer, Mele Kyari, Nigeria aims to increase its crude oil production by 200,000 to 300,000 barrels per day by October. Once this target is achieved, Nigeria will push for a higher quota at the next OPEC+ meeting in November.
Kyari explained that Nigeria has the capacity to produce more crude oil, but security challenges, particularly in the Niger Delta region, have hindered production. However, the country’s efforts to address these security concerns have been effective, and OPEC acknowledges Nigeria’s potential for increased production. OPEC has set a production target for Nigeria to reach by October, and Kyari expressed confidence that Nigeria will meet this target.
Currently, Nigeria’s crude oil production, including condensates, stands at around 1.3 million barrels per day. However, Kyari noted that this is well below Nigeria’s actual production capacity, which was close to 2.1 million barrels per day before the COVID-19 pandemic. The primary obstacles to reaching higher production levels are related to pipeline infrastructure. Once these challenges are resolved, Nigeria will be able to increase its production further.
In June, OPEC+ reduced Nigeria’s quota from 1.742 million barrels per day to approximately 1.38 million barrels per day due to low production levels. Nevertheless, Kyari expressed confidence that the Federal Government of Nigeria will secure a higher quota by November. The country’s target is to reach a minimum production level of 2 million barrels per day. When accounting for condensate production, the total output would be even higher, meeting Nigeria’s expectations.
Opinion: It is positive to see that Nigeria is working to increase its crude oil production and secure a higher production quota within the OPEC+ agreement. By addressing security challenges and focusing on resolving pipeline infrastructure issues, Nigeria aims to tap into its full production capacity. If successful, this would not only contribute to the country’s economic growth but also have a positive impact.
Punch.