Nigeria’s Oil Production Capacity To Increase… But Oil Prices Keep Plunging

Between now and 2017, Nigerian oil sector is set for a boost as the oil production capacity may increase by about 297,000 barrels per day (bpd).

Going by indications from the Nigerian National Petroleum Corporation (NNPC), the nation, which currently produces about 2,037 million barrels per day (bpd), is expected to get additional 40,000bpd in 2015, 57,000bpd in 2016 and 200,000bpd in 2017 from new projects from  oil multinationals like ExxonMobil and Total.

According to the Group General Manager, National Petroleum Investment Management Services (NAPIMS), an arm of the NNPC, Jonathan Okehs, NAPIMS has continued to explore the frontier areas of Nigeria to increase oil and gas reserves , through Frontier Exploration Services (FES), in spite of the dire security situation in the Chad Basin area .

He was also optimistic that the domestic gas market would experience tremendous growth, as gas supply is expected to increase to over 80 million standard cubic feet per day (mmscfd) by the first quarter of 2015.

However, despite the news of this production increase, the global oil price still continues its downward plunge. As at today, it stands at $47.7 per barrel, almost $18 below Nigeria’s federal budget benchmark.

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