Minister – Nigeria Has What It takes To Increase Its Crude Oil Production

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, on Thursday, July 18, said that Nigeria has what it takes to increase its crude oil and condensate production.

This was contained in a statement he personally signed and issued in his X handle, which was obtained by The Nation.

He expressed hope that owing to his recent meetings with Chief of Defence Staff, General Musa Christopher Gwabin, Security Heads of Operation Delta Safe and the Niger Delta Region, at the Headquarters of 6 Division Nigeria Army in Port Harcourt, Rivers State, the country could accomplish the target of increased production.

He stated: “Our capacity to increase production, including condensate, is within reach. With the ongoing collaboration of all security agencies and stakeholders, whom I have been actively engaging with, we are optimistic about actualizing this target. This was the focus of our recent gathering convened by the Chief of Defence Staff, General Christopher Gwabin Musa, with the Security Heads of Operation Delta Safe and the Niger Delta Region, at the Headquarters of 6 Division Nigeria Army in Port Harcourt, Rivers State.”

Lokpobiri also said the cooperation emanating from the efforts and strategy is central to boosting the national economy through increased crude oil production.

He noted that the meeting with the security chief is a demonstration of the commitment to upscaling the measures to curb pipeline vandalism.

He said: “The synergy between these efforts and our strategic initiatives is pivotal in driving our national economic growth through enhanced crude production as the meeting underscored our commitment to bolstering security measures and curbing pipeline vandalism.”

“Nigeria has been grappling with crude oil theft, illegal refining, and pipeline vandalization. The organized crime has taken a toll on its monthly production, culminating in output fluctuation.

Last Friday, Lokpobiri revealed that the Federal Executive Council has awarded $21million contract for the metering of 187 flow stations in the Niger Delta.

The measure, he said, will lead to proper accountability of production and export in the industry.

He also announced that the council also approved a contract for advanced cargo, which will track the movement of crude oil right from loading to final destination.

The two contracts are billed for completion in 180 days, he said.

He said: “One of the key approvals by the Federal Executive Council on Wednesday that held on Wednesday has to do with awarding a contract for the metering of our 187 flow stations across the Niger Delta region of Nigeria by the Nigerian Upstream Petroleum Regulatory Commission, (NUPRC).

“As part of our steps to ensure that we have proper accountability, the Federal Executive Council approves the metering of all our production.

“We have 187 flow stations in the country, metered across the Niger Delta area, and there was a contract awarded for us to meter all the flow stations so that we will be able to properly account for what we produce and what we export.

 “The second key issue is what we call advanced cargo. As part of the steps towards ensuring that we account for what we produce, and then Nigerians getting to get the maximum value for what we produce.

“The second memo that was approved by the council has to do with what we call advanced cargo, which means we are awarding a contract to a company that will provide the technology within 180 days, the same period, to enable us to know from the point of loading of every cargo of crude oil that’s loaded in Nigeria up to the point of destination. That is why I call it advanced cargo.”

“So the Federal Executive Council on Wednesday also, you know, approved a memo, and awarded a contract to be delivered within 180 days, you know, to provide the software also by the NUPRC, to ensure that we in Nigeria, you know, can monitor what is loaded from our terminals up to the final point of destination.”

Recalled the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday said crude oil production increased by 31,629b/d from 1.4mb/d in May 2024 to 1.5mb/d in June 2024.

This was contained in the June 2024 Oil Production Status Report that the commission released on its website.

The report is a reflection of unstable oil production as the figures keep fluctuating on a monthly basis.

There has been neither a steady decline nor a steady increase in production in 2024.

While the country produced 1.4 Imb/d in April, output was 1.4mb/d in March, it was 1.5mb/d in February, and 1.6mb/d in January.

From the record, in the month under review, the country’s output rose by 31,629b/d over the 1,468,579 produced in May 2024.