Minister Lokpobiri Explains Nigeria’s Two-Month Decline In Oil Production

Minister Lokpobiri Explains Nigeria’s Two-Month Decline In Oil Production

Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has attributed the decline in oil production during February and March of 2024 to challenges faced on the Trans Niger Pipeline, alongside maintenance operations conducted by various oil companies operating within Nigeria.

Data released by the Nigerian Upstream Regulatory Commission (NUPRC) for March indicated a continued decrease in production for the second consecutive month, reaching 1.438 million barrels per day. This figure marks a notable decrease compared to the 1.539 million barrels per day recorded in February and the 1.643 million barrels per day in January, inclusive of condensate oil production. The current production volume falls significantly below the 1.78 million barrels per day outlined in the 2024 budget.

In response to these developments, Lokpobiri, through a statement by his media aide, Nnemaka Okafor, assured the public that steps were being taken to rectify the situation and not only restore production to previous levels but also enhance it. The statement highlighted that the identified issues have been effectively addressed, with production expected to return to normalcy in the coming days.

The Minister anticipates a restoration of Nigeria’s oil production, including condensate, to its previous level of approximately 1.7 million barrels per day before the onset of these challenges. Furthermore, the Ministry of Petroleum Resources is actively involved in policy formulation aimed at maximizing the utilization of all available wells in the country. This strategic approach seeks to bolster production, thereby boosting crucial revenue to support Nigeria’s foreign exchange reserves and fulfill infrastructure commitments outlined in the 2024 budget.

Meanwhile, Libya has emerged as Africa’s leading crude oil producer following Nigeria’s 6.8% decrease in output to 1.23 million barrels per day in March 2024, down from 1.32 million barrels per day in February 2024. Conversely, Libya’s oil output saw a 5.4% increase to 1.236 million barrels per day in March 2024, up from 1.173 million barrels per day in February 2024, as reported by the Organization of the Petroleum Exporting Countries (OPEC).

Regarding domestic obligations, the Federal Government has underscored the importance of the industry’s capacity to meet local crude obligations to domestic refineries, affirming that supplying local refineries remains a priority. Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, emphasized the government’s objective of transitioning Nigeria into a net exporter of refined petroleum products by prioritizing crude supply to local refineries. This move aligns with efforts to develop robust domestic refining capacity and exit the subsidy regime.

While Nigeria retained its leadership position in crude oil production in Africa, based on secondary sources, OPEC reported a slight decrease in total OPEC-12 crude oil production in March 2024, mainly attributed to declines in Nigeria, Iraq, and Venezuela, despite increases in IR Iran, Saudi Arabia, Gabon, and Kuwait.

In summary, Nigeria’s oil production challenges are being addressed with strategic measures aimed at restoring and enhancing production levels, while efforts continue to prioritize domestic refining capacity to support the nation’s energy independence and economic stability.

For more information join our WhatsApp group by clicking the link here: WhatsApp Group Invite