The newest statistics from the Federal Government revealed that Nigeria’s oil output grew to 1,426,574 barrels/day in January 2024. This led to a $1.19 spike in the price of Brent, the worldwide benchmark for petroleum, on Tuesday evening.
Nigeria will receive more foreign cash due to the small increase in crude oil prices and the rise in its output. Nigeria’s main source of foreign exchange earnings is the sale of crude oil.
Nigeria’s output increased by 91,476bpd in January 2024 compared to the production number of 1,335,098bpd in December 2023, according to the Nigerian Upstream Petroleum Regulatory Commission, an agency of the Federal Government, in its most recent statistics on crude oil and condensate production.
According to NUPRC data, Nigeria’s oil output increased to 1.64 million barrels/day in January 2024 from 1.55 million barrels/day in December 2023 with the addition of condensate.
In order to achieve the oil production limit set by the Organization of Petroleum Exporting Countries, the Federal Government of Nigeria has been working hard to raise oil output and decrease pipeline vandalism.
The NUPRC Chief Executive, Gbenga Komolafe, supported this on Tuesday by announcing that the commission has taken action to address issues plaguing the oil and gas industry and increase oil output.
He disclosed this in Lagos while presenting a country address at the Petroleum Technology Association of Nigeria Sub-Saharan Africa International Petroleum Exhibition and Conference.
In his speech, which was made available to journalists in Abuja, Komolafe said Nigeria’s oil production currently averages 1.586 million barrels/day, adding that this consists of 1.33mbpd liquid production and 256,000 condensate oil production.
He explained that some of the measures adopted by the commission include improved transparency in hydrocarbon measurement and accounting, collaborative work programme administration with the exploration and production companies, and close monitoring to ensure that they meet their work programme obligations.
Others include acceleration of field developments through timely approvals and ensuring speedy execution, production optimisation by ensuring wells were tested periodically and produced at optimal rates, identifying candidate wells for work-over and interventions, as well as the adoption of enhanced oil recovery processes and technologies.
Meanwhile, Komolafe observed that the global energy landscape was currently undergoing rapid changes in response to climate concerns, stressing that the oil and gas industry was experiencing crucial changes that would have significant bearing on the global energy future.
“The agenda for Nigeria and other resource rich developing economies is that the evolving energy dynamics must be calibrated to ensure energy justice, equity, inclusivity, and sustainability.
“The new dynamics in the global energy arena necessitate that Nigeria and other countries, long dependent on the exploitation of oil and gas as the mainstay of their economies, re-examine their strategy to secure a blossoming energy future while meeting the global climate goals,” the NUPRC boss stated.
He, however, noted that aside from hydrocarbon resources, “Nigeria is blessed with potentials for green and blue hydrogen, solar, wind, biomass and critical minerals for development of clean energy technologies as well as growing population predominated by young people.
“With a coastline along the Gulf of Guinea, a market size of more than 200 million people projected to reach between 390 million and 440 million people in 2050, Nigeria represents hope for Africa.”
He told his audience that the intention of Nigeria was to leverage its huge natural gas reserve to power its energy transition plan and grow its economy.
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