The Nigerian National Petroleum Company Limited (NNPCL) announced on Thursday that it has achieved a crude oil production rate of 1.8 million barrels per day, marking a significant milestone toward Nigeria’s energy goals. The state-owned company is now focused on reaching President Bola Tinubu’s target of 2 million barrels per day by December 2024.
In addition to the rise in oil production, NNPCL reported an increase in natural gas output, currently producing 7.4 million standard cubic feet (mmscf) of gas to power infrastructure such as the AKK pipeline, up from 6.1 mmscf earlier this year. This achievement aligns with the Nigerian government’s budget and reflects the dedication of NNPCL’s teams in recent weeks.
Group Chief Executive Officer Mele Kyari recently addressed the Senate Committee on Finance, affirming the feasibility of the company’s oil production and price benchmarks for the 2024 budget. He supported the $77.96 per barrel budget benchmark set by the government, stating that market trends suggest prices are likely to remain above $70 per barrel, supporting budgetary projections.
Kyari also clarified the distinction between Nigeria’s OPEC quota and its total production capacity, noting that while the OPEC quota stands at 1.5 million barrels per day for crude oil, Nigeria produces an additional 250,000 to 300,000 barrels per day of condensate. Together, this production brings Nigeria’s daily output to a realistic and achievable 1.78 million barrels, underscoring NNPCL’s commitment to meeting the nation’s energy and economic targets.
NNPCL’s progress in both oil and gas production highlights its role in bolstering Nigeria’s energy infrastructure and supporting economic development.
