Uche Cecil Izuora
Current efforts by Nigeria is expected to see a 30 per cent rise in crude and condensate output.
Key Government Agencies in the industry are working in concert to strengthen security around the nation’s oil infrastructure and incentives in the sector to attract investment, even though the gain could cross its OPEC+ commitment to limit production.
It is anticipated that that the ongoing efforts will see output reach 2 million bpd before the end of the year from 1.54 million bpd in September, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“As of today the country’s crude oil production plus condensate is 1.8 million bpd and we’re pushing, working with everyone to increase it to two million bpd before December,” Enorense Amadasu, executive commissioner of the Authority said at the NAPE conference in Lagos on Monday.
While the regulator didn’t disclose the proportion of crude to condensate in its projection, a higher level would push output closer to or over the 1.5 million bpd quota that Nigeria agreed with OPEC+ not to exceed.
The 23-nation group has implemented the production limits to stave off a surplus and shore up crude prices.
Though not all members have followed the plan but group’s leadership has pressed members like Iraq, Kazakhstan and Russia to fully implement output cuts pledged at the start of the year, and make additional reductions in compensation for over-producing.
Nigeria has stayed below its OPEC+ quota for more than two years due to a lack of investment and widespread theft and vandalism in the oil-rich Niger Delta.
President Bola Tinubu, has made efforts to draw investors to the sector by offering tax breaks to producers as well as approving pending asset sales.
The NUPRC is looking to open bids for 31 oil and gas blocks spanning the country’s onshore and offshore acreage as part of measures to further increase production, Amadasu said, without giving a timeline. “These blocks have been carefully selected for its potentials to boost our reserves and stimulate economic activities,” he said.