Nigeria Set to Achieve 2 Million Barrels Daily Oil Production in 2024
Nigeria is aiming for a crude oil production target of at least two million barrels per day in the 2024 fiscal year, surpassing its OPEC+ quota of 1.38 million. The OPEC+ coalition, led by Saudi Arabia and including allies like Russia, had reduced Nigeria’s output target for 2024 to 1.38 million barrels per day from 1.74 million for 2023. This adjustment reflected Nigeria’s historical challenges in meeting its production targets.
Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, stated that the country plans to produce up to 2 million barrels per day during the year, combining both crude oil and condensates production. He expressed confidence that even higher production figures could be achieved.
The potential for reaching this target is attributed to the government’s efforts in combating crude oil theft and addressing insecurity in the oil-producing regions of the Niger Delta.
It’s worth noting that the November 2023 data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated a crude oil production of 1,250,299 barrels per day, along with blended and unblended condensates, totaling 1,466,185 barrels per day. The government’s initiatives against oil theft and insecurity are expected to contribute to sustainable crude oil production in the country.
He said: “In the past seven years or more, there is no fuel queue across the country that did not happen by accident, it is a product of careful planning and execution. I can assure you that our projection for the year 2024 will be to surpass 2 million barrels per day and we will achieve it.
“When I came in, we were doing about a million barrels, today, we are doing about 1.7 million barrels per day, inclusive of condensates, so we can fund our budget comfortably. But we can do a lot more and I am already engaging all the companies about their plan for 2024 so that we can sustain this momentum.”
Maryamu Idris, the Executive Director for Crude and Condensates at the Nigerian National Petroleum Company Limited (NNPCL), outlined efforts to increase oil production during the Argus European Crude Conference in London in November 2023.
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She highlighted challenges arising from the COVID-19 pandemic, including reduced investments, supply chain disruptions, aging oil fields, and oil theft, which impacted Nigeria’s production in late 2022 and early 2023.
Furthermore, the Dangote Refinery, currently receiving crude oil deliveries, is anticipated to commence production of its first petroleum products in the first quarter of the year. The refinery, located in Lagos, Nigeria’s commercial capital, has generated high optimism that it could potentially lead to a price decrease in refined products.
