The Federal Government, on Tuesday, declared that Nigeria would meet and surpass the 2024 crude oil budget benchmark of 1.7 million barrels per barrel despite the marginal decline in oil output in November 2023.
Latest figures released by the Nigerian Upstream Petroleum Regulatory Commission on Tuesday showed that the country’s crude oil production, excluding condensates, dropped to 1.25mbpd last month.
Nigeria had pumped 1.351mbpd of crude oil (excluding condensates) in October, which was a slight increase over the 1.346mbpd that it earlier produced in September this year, higher than the 1.181mbpd output recorded the preceding month of August.
But the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, insisted that the country would meet its oil production benchmark in the 2024 budget of 1.7mbpd.
Speaking at a stakeholder’s interactive session on Creating Value and Enabling Investments in Nigeria’s Oil and Gas Sector, organised by Chevron Nigeria Plc, Lokpobiri also said the country has the capacity to increase crude oil production to 2mbpd.
He was quoted in a statement issued in Abuja by his media aide, Nneamaka Okafor, as saying, “The success of the upstream sector will determine the success of the midstream and the downstream sectors.
“And as a government, we are willing to sustain that engagement with the stakeholders so that in the year 2024 and beyond, we will together ensure that we produce not just the 1.7 million bpd that we need for our budget but ensure that we produce what is needed to meet the local demand.”
The minister outlined the trajectory of sector growth since the current administration took office, starting at about one million bpd and steadily increasing to 1.4 million bpd.
He expressed his ambition to continue this upward trajectory, highlighting the government’s commitment to creating an enabling environment for stakeholders to thrive.
“As a new government that is business-friendly, with a clear mandate to ramp up production, we are willing to ensure that our fiscal regime is competitive globally.
“My appeal is that this old marriage, let us manage it, sustain it and improve on it. Whatever your concerns may be, let us put them on the table to disagree to agree,” Lokpobiri stated.
He reassured stakeholders that the government was working diligently to address the challenges facing the sector and was committed to providing the best playing field for both International Oil Companies and independents to make the necessary investments.
“As a country, we have the capacity to produce more than 2mbpd. We have identified the issues bedeviling the sector and are already working on them. I would replicate this programme with all the IOCs and independents so that we can make the sector work for all of us and Nigerians at large, and I know that 2024 will be a much better year,” he added.
The minister also highlighted ongoing efforts to rehabilitate refineries and ensure the functionality of modular refineries to enhance the country’s refining capacity, as well as meet local and regional demands.
