Nigeria’s crude oil production has risen to 2.1 million barrels per day from an average production level of 1.8 million per day last year, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru has revealed.
Attacks on oil pipelines and other production facilities in the Niger Delta region by militant youths had curbed Nigeria’s production in 2016 and placed government revenue and the economy in danger.
But speaking yesterday at the ongoing Nigeria Oil and Gas conference in Abuja, Baru explained the repairs on the facilities and the peaceful situation in the region have resulted in a rise in oil productions.
He was, therefore, optimistic that before the end of the year, oil output will exceed the 2.2 million barrels per day target of the 2017 budget.
He said: “Crude production declined to as low as 1.5 million barrels per day in July 2016, but this has steadily increased to 2.1 million barrels in recent times due to strategic steps were taken by the NNPC and her partners to be able to produce from assets that were affected by pipeline vandalism.
“We must also mention that improvement in production is also as a result of successes of a recent dialogue held by the federal government in the Niger Delta areas. We are hoping that by the end of Q2, 2017, we should ramp up production above the budget benchmark of 2.2 million barrels per day”.
While noting that NNPC continues to face a lot of challenges in its operations, he stated that the non-passage of the Petroleum Industry Bill has impacted negatively on its fiscal plans.
According to him, “The sectoral fiscal regime was also constrained with the non-passage of the Petroleum Industry Bill which is before the National Assembly. All these have subjected NNPC to seek to sharpen commercial strategies to enable her to mitigate some of the aforementioned challenges which would ultimately move NNPC from the era of loss into a profitable operation, and thereby within the expectations of all stakeholders. (Authority)