Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
The Minister of State, Petroleum Resources (Oil), Senator Heineken Lokpobiri, yesterday acknowledged Nigeria’s declining crude oil production in Q1, after an initial rise in recent months.
In a statement by his Special Adviser on Media and Communications, Nneamaka Okafor, the minister assured that measures were being taken to address the situation, not only to restore production to previous levels, but to increase it in a sustainable manner.
Data from the Organisation of Petroleum Exporting Countries (OPEC), indicated on Thursday, that Nigeria’s crude oil production witnessed the second consecutive monthly fall since the beginning of this year.
It slumped to 1.231 million barrels per day in March (direct communication), according to the OPEC data, raising fears that the country could be on its way back to between Q4, 2022 and Q1, 2023, when Africa’s biggest oil producer struggled to drill between 900,000 bpd and 1.1 million bpd.
However, production was 1.39 million bpd, when based on secondary sources, the information from OPEC stated. Production was 1.322 million bpd February this year, dropping 91 million bpd during the month.
It also represented a huge fall from 1.427 million from January, when there was huge hope that Nigeria was finally recovering. The country’s OPEC quota for 2024 is 1.5 million bpd.
But in a response to recent concerns regarding the shortfall in oil production, Lokpobiri, stated that this was primarily due to issues encountered on the Trans Niger Pipeline TNP), coupled with maintenance activities carried out by some oil companies operating in Nigeria.
“Measures are being taken to address the situation to, not only restore production to previous levels, but to also increase it. The minister clarifies that the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in Nigeria.
“The minister is also pleased to announce that the issues have been adequately addressed, and production is expected to return to its previous levels in the coming days.
“He anticipates that Nigeria’s oil production, including condensate, which was approximately 1.7 million bpd prior to these developments, will soon be restored,” the statement added.
The minister pointed out that the Ministry of Petroleum Resources was actively engaged in policy evolution aimed at maximising the utilisation of all available wells in Nigeria.
This strategic approach, he said, will enable the country to ramp up production, thereby generating vital revenue to stabilise the nation’s foreign exchange reserves.
According to him, the increased revenue will also empower the government to fulfil its commitments in providing essential infrastructure, as outlined in the 2024 budget.
“The minister further assures of renewed hope as Nigeria navigates through these challenges, while urging all to remain committed to ensuring the sustainability and growth of Nigeria’s oil sector, which plays a crucial role in driving the nation’s economy,” the statement stressed.
