Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, has linked the reduction of crude oil production in the initial quarter of the year to challenges encountered with the Trans-Niger pipeline and maintenance operations conducted by certain oil companies.
In a statement made by his media aide, Nnemaka Okafor, the Minister assured that these issues have been addressed, expressing confidence that the nation will soon be capable of producing 1.7 million barrels of oil daily.
Additionally, Lokpobiri highlighted the federal government’s efforts in formulating policies aimed at maximizing the utilization of all existing oil wells across the country.
This initiative is intended to generate revenue to cover budgetary expenses and provide foreign exchange to stabilize the FX market.
In his statement, he said:
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“In response to recent concerns about a shortfall in our oil production during the first quarter of this year, I want to assure everyone that we’re taking decisive measures to address the situation. The reported shortfall was mainly due to issues on the Trans Niger Pipeline and maintenance activities by some oil companies.”
“I’m pleased to announce that we’ve resolved these issues, and production is expected to return to previous levels very soon. Our oil production, including condensate, which was at approximately 1.7 million barrels per day, will soon be restored.”
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Recall that, according to OPEC’s monthly oil market report, Nigeria’s crude oil production plummeted to 1.23 million barrels per day (bpd) in March. This marks the third consecutive month that the country’s average oil production has fallen below the budget benchmark of 1.78 million bpd.
In January, Nigeria’s average daily oil production was recorded at 1.427 million bpd, while February saw a decrease to 1.32 million bpd. The decline in oil production in March resulted in Nigeria being surpassed by Libya as Africa’s largest oil producer.