Fakoyejo OlalekanThe Federal Government is planning to meet with members of the Organisation of the Petroleum Exporting Countries and its non-OPEC partner, Russia, in November to renegotiate Nigeria’s crude oil output.
According to the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, on Tuesday, Nigeria has the capacity to produce 2.1 million barrels per day (bpd), which is more than the quota given to Nigeria to produce.
Recall that OPEC had reduced Nigeria’s crude oil quota to around 1.380 million barrels per day for the 12 months period next year, from the 1.8 million bpd given to the West African country in 2023.
The reduction followed Nigeria’s inability to meet the quota, as the country has been producing under 1.3 million bpd, with its last crude oil production output being 1.18 million barrels per day in May, according to Direct Communication.
Although secondary sources said Nigeria’s output for May was 1.26 million bpd. However, Kyari said the country will ramp up its output by 200,000 to 300,000 barrels latest October.
“OPEC understands that it is not that Nigeria does not have what it takes to produce more crude, but the challenge has been in terms of security, and everything we are doing to combat insecurity in the Niger Delta is working.
“OPEC has now given us (Nigeria) a target to increase production between now and October, and that figure is going to be worked with. I think it is very practical to get to between 1.5/1.6 by October,” Kyari told Bloomberg.
Discussing Nigeria’s plan further, he said Nigeria’s production level will rise once it resolves the pipeline issues. Vandals have often vandalised the pipeline to steal crude, costing the country millions of dollars.
“We have a clear case when during the COVID, we had capacity to do close to 2.1mb/d. So we know we have the capacity,” the oil chief said, adding, “The issues are around the pipeline, and once we are able to resolve the challenges, then, we can produce higher.”
Kyari said Nigeria’s target is at least 2 million barrels bpd: “We are more confident to get a new quota than we have at the moment.
“The country’s target is at the very least, 2mb/d, and when you add that to the condensate production, you would get a higher number, and of course that would also meet the expectation of the country.”
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