FG Aims for Increased Oil Production Amid Rising Global Prices

Oil Prices Drop, Here's Why

The Nigerian government has set its sights on achieving a daily crude oil production target of 2.5 million barrels as global oil prices continue to surge. Brent, the global benchmark, recently surpassed $84 per barrel after trading around $80 per barrel in recent weeks.

According to data from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s oil output reached 1,426,574 barrels per day in January 2024, marking a significant increase from 1,335,098 barrels per day recorded in December 2023. When including condensate, Nigeria’s oil production rose to 1.64 million barrels per day in January 2024, up from 1.55 million barrels per day in December 2023.

The rise in global oil prices, coupled with Nigeria’s increased oil production, underscores the government’s optimism regarding the country’s oil sector. The Chief Executive of the NUPRC, Gbenga Komolafe, highlighted Nigeria’s significant oil and gas reserves, representing 30% and 34% of Africa’s reserves, respectively.

Komolafe emphasized the government’s commitment to implementing the Petroleum Industry Act to stimulate growth in oil and gas reserves and achieve the target production of 2.5 million barrels of oil and condensate per day in the near term. He noted that bridging the gap between actual production and technical potential presents investment opportunities and revenue streams for Nigeria, ultimately strengthening economic resilience.

Additionally, Komolafe highlighted Nigeria’s potential in renewable energy sources such as hydrogen, solar, wind, and biomass, alongside the country’s youthful population and large market size, positioning Nigeria as a key player in Africa’s economic growth and development.

Despite pressure from Western nations to reduce fossil fuel exploration, the Nigerian government remains steadfast in its commitment to harnessing the benefits of its natural resources. Minister of State for Petroleum Resources, Heineken Lokpobiri, reiterated the government’s stance at a recent summit in Abuja, emphasizing the need for stakeholders’ support in developing Nigeria’s oil and gas sector for the welfare of Nigerians.

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