FG to earn more as NNPC surpasses 1.8m barrels per day oil production

The Federal Government is poised to earn more revenue from the oil and gas sector as the Nigerian National Petroleum Company Ltd, in collaboration with stakeholders, has increased crude oil production to 1.8 million barrels per day.

The achievement was announced by the Group Chief Executive Officer, Mele Kyari, during a meeting held at the Oil Production War Room at the NNPC Headquarters on Thursday in Abuja.

The meeting, presided over by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, was attended by the Chairman of the NNPC Ltd Board, Chief Pius Akinyelure; the Group Chief Executive of NNPC Ltd, Mele Kyari; the Chief Financial Officer, Mr Adedapo Segun; the Executive Vice President, Downstream, Mr Isiyaku Abdullahi; the Executive Vice President, Upstream, Udobong Ntia; and the Chief Upstream Investment Officer of NNPC Upstream Investment Management Services, Mr Bala Wunti, among others.

During an interactive session with the Senate Committee on Finance at the National Assembly in December last year, the GCEO assured that the projections for crude oil production and the price benchmark for the 2024 Budget were realistic and achievable.

The company also revealed that it is now producing 7.4 million standard cubic feet of gas to power the gas infrastructure, particularly the AKK. This is an improvement from 6.1 million mmscf earlier in the year.

The NNPCL noted that this accomplishment, which aligns with the government’s budget, reflects the dedication of all of its teams over the past weeks.

Speaking at the meeting, the Chief Production War Room Officer, Lawal Musa, said that with the leadership of NNPC, collaborating with all stakeholders, particularly its partners, government security agencies, private security agencies, and local communities, they were able to elevate production through active collaboration within the system, external engagement, and alignment with regulators.

“Today, the entire industry is very proud; we are grateful to have crossed the 1.8 million barrels per day mark. This is a significant milestone. For a long time, we have not been able to achieve this. Concurrently, we have also surpassed 7.4 BCF of gas. This is monumental,” he said.

He added that NNPC is fully aligned and committed to delivering greater value, aiming to reach 2 million barrels per day by the end of the year. He expressed confidence that this goal is achievable.

He noted that as far back as June 25, when the war room began, crude oil production was at 1.43 million barrels per day (bpd), and by August 11, it had crossed the 1.7 million bpd mark. According to him, this was in line with the presidential mandate for the industry to reach 1.7 million bpd.

“We are proud that, even before the end of the year, as early as August, we crossed that mark. We are confident that with this same momentum and active collaboration, especially on the security front, we will see clear interventions, faster recovery, and better delivery to the market, which will help us reach 2 million barrels per day before the end of the year,” he said.

The Minister of Petroleum, in his speech, described the achievement as remarkable, noting that NNPC Ltd has demonstrated that it has the potential to reach and even exceed the 2 million barrels per day target for December.

He said, “Today, we are grateful to have crossed the 1.8 million barrels per day mark and also surpassed 7.4 BCF of gas; this is our agenda. The entire team is fully aligned and committed to delivering greater value, and we are committed to reaching 2 million barrels per day by the end of the year.

“This is possible. This is achievable. I am very proud as a minister. We can do it again. On behalf of the Ministry of Petroleum Resources and the Federal Government of Nigeria, let me formally congratulate the Chairman, board members, and management of NNPC for navigating this process.”

In his remarks, the NNPC Board Chairman said this is just the beginning of greater achievements for NNPC Ltd.

He urged the management and staff members of NNPC not to rest on their laurels, as more needs to be done to surpass the expectations of the company’s shareholders.

“This is just the beginning; we want to see more landmark accomplishments,” he added.