The Minister of State of Petroleum Resources (Oil), Heineken Lokpobiri, has revealed how Nigeria’s crude oil production increased to 1.8mbpdThe Minister stated that the directive of President Bola Tinubu necessitated the increase in oil outputHe said Nigeria moved from producing about one million barrels in 2023 to the current figure under his leadership
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained how the Nigerian government got foreign investors to increase oil production to 1.8 million barrels daily.
The Minister narrated that Nigeria’s oil output has increased from one million barrels per day in 2023 to 1.8 million barrels today.
The Minister of State for Petroleum Resource, Heineken Lokpobiri, explains the increase in crude output.
Credit: Nairarates
Source: UGC
How Tinubu’s Directive Boosted Oil Production
The Minister disclosed in a statement on Monday, January 6, 2024, that the presidential order to increase oil production to a sustainable level began the journey of transformation in the oil industry.
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He disclosed that President Bola Tinubu’s directive became the cornerstone of his commitment to achieving the feat.
Lokpobiri stressed that he and his team embraced the directive by engaging stakeholders at home and abroad.
Nigeria ramps up oil production to 1.8mbpd
According to the oil minister, from one million barrels per day, the country has boosted output to 1.8 million, including condensate, and continues to aspire for more production.
Punch reports that the Minister listed sitting at the Africa Energy Bank in Nigeria as one of his achievements.
He revealed that his achievements include attracting foreign investment decisions, winning the African Energy Bank bid, sustaining peace in host communities via robust engagement, and deregulating the downstream sector.
He also said his ministry has eliminated bureaucratic hurdles, facilitated capacity building for local players and introduced several reforms.
NNPC pledges Nigeria’s crude oil to loans
The development comes amid a report that the Nigerian National Petroleum Company Limited (NNPC) pledged over 270,000 of Nigeria’s crude oil to a loan totalling over $8 billion.
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Dangote, other Nigerian refineries face crude oil supply shortage as NNPC battles debt servicing
The move means that local refineries may face a reduction in crude oil allocation due to the NNPC deals.
The national oil firm may continue servicing debt related to its crude-for-loan deal until 2029 as local refineries’ demand for oil rises.
The state oil firm’s debt burden came from several crude-for-oil loan arrangements tied to Nigeria’s oil output and various financial obligations.
NNPC may reduce crude supply to Dangote Refinery
Henzodaily.ng earlier reported that the Nigerian government may reduce crude oil supply to the Dangote refinery from 300,000 to 200,000 barrels daily.
The development comes as two other Nigerian refineries have commenced operations, increasing demand for crude.
The NNPC runs the Port Harcourt and Warri refineries, which have a combined capacity of 135,000 barrels per day.
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Source: Henzodaily.ng