Nigeria has set an ambitious goal to increase its oil production to 2.7 million barrels per day (bpd) by 2027, including both crude oil and condensate. This goal was outlined by President Bola Tinubu’s Special Adviser on Energy, Olu Verheijen, who emphasized that improved security around oil production and transportation sites is key to achieving this target.
Verheijen clarified that Nigeria’s increase in oil output would be supported in part by condensate, a lighter, more volatile hydrocarbon that allows the country to stay within its OPEC+ crude oil production quota of 1.5 million bpd. Nigeria’s oil production, which was as low as 1.1 million bpd in 2022, reached 1.67 million bpd by December 2024.
The Special Adviser also pointed out that the removal of fuel subsidies has revitalized Nigeria’s downstream oil sector, making it commercially viable for the first time in decades. This change has the potential to stimulate further investments in the country’s refineries.
OPEC reaffirmed its commitment to monitoring adherence to oil production quotas across member countries. The Joint Ministerial Monitoring Committee (JMMC) recently reviewed the production data for November and December 2024, emphasizing the importance of maintaining unity and conformity among OPEC and non-OPEC members.
During the JMMC meeting, countries such as Kazakhstan and Iraq were praised for improved production conformity, while overproducing countries were encouraged to submit updated compensation schedules. OPEC stressed its commitment to ensuring full conformity and stability in the global oil market, with the next JMMC meeting scheduled for April 2025.
Source: Punch