Nigeria’s government has raised its oil output goal for the national oil company, aiming to reach 2.5 million barrels per day by year-end.
Petroleum Resources Minister Heineken Lokpobiri shared at the Oil Technology Conference Africa Energy Forum that he personally set the new target, increasing it from the president’s initial goal of 2 million bpd.
Lokpobiri expressed confidence in the target, noting that Nigeria had previously hit that level during the pandemic, even without fresh investment in production.
He emphasized that the country could now reach the new output goal as the government works to eliminate the obstacles holding back oil production.
Official records reveal Nigeria hasn’t produced at 2 million bpd in over ten years, with a peak near that level back in 2016. Since then, output has steadily declined.
Rampant pipeline sabotage and oil theft have scared off investors and stalled production recovery efforts.
International oil companies have also shifted focus to more promising regions, scaling back operations in Nigeria.
Despite that trend, Exxon recently committed $1.5 billion to revive deepwater oil production in the country, with investments planned between 2025 and 2027 for the Usan field, according to Nigeria’s upstream regulator.
Lokpobiri noted that security improvements in the Niger Delta are helping tackle vandalism and theft, paving the way for output expansion.
He also pointed out that Nigeria’s efforts align well with changing OPEC+ dynamics, as Saudi Arabia moves away from cuts and towards production growth.
Source: oilprice.com
African Energy Council