Nigeria’s daily oil production experienced a significant drop in July 2023, registering a decline of 13.6 percent to an average of 1.08 million barrels per day. This contrasts with the June figure of 1.25 million barrels per day, according to the most recent production data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The recent production output presents a notable setback for the government, as its target in the 2023 budget was set at 1.69 million barrels per day. Moreover, the current volume falls considerably short of the 1.7 million barrels per day production quota allocated to the country by the Organization of the Petroleum Exporting Countries (OPEC).
Examining the data unveiled by NUPRC on Thursday, it becomes apparent that daily blended and unblended condensate oil production for July amounted to 38,258 barrels and 174,509 barrels respectively. It’s important to note that condensate oil production is not included in Nigeria’s OPEC production requirement.
In total, the average daily oil production for July was 1.29 million barrels per day, representing a 12.8 percent decrease when compared to the total average daily production of 1.48 million barrels in June.
In a recent session during the Nigeria Oil Gas Energy Week in Abuja, the Executive Vice President, Upstream, Engr. Adokiye Tombomieye, revealed that NNPC Limited aims to achieve an oil production target of 1.8 million barrels per day by the fourth quarter of this year. Tombomieye highlighted that the initial objective is to reach the 1.7 million barrels per day mark by the conclusion of the third quarter.
Tombomieye outlined that these new production goals will be accomplished through strategies such as asset integrity maintenance, production escalation, well interventions, new drilling activities, alternative crude oil transportation methods, and an enhanced security framework.
Providing specific details, Tombomieye, who was represented by Igandan Olanrewaju, said: “We have resumed crude oil production in earlier challenged areas like OMLs 29, 18, and 24. We expect to ramp up to about 80,000 bpd with our joint venture partners in Q3 2024. The first oil to tank was achieved in NEPL, the former NPDC OML 13 field of 25,000 bpd, and we expect to fully monetize that by the end of Q3 2023.
“Obodo field in OML 150 PSC is expected to bring up to about 20,000 bpd in late Q4 2023. Development in OMLs 71 and 72 is expected to add about 20,000 to 30,000 bpd to national production by late Q3 2023.
“Within the deep water space, we are concluding the Aboe turnaround maintenance, which will bring back about 10,000 bpd; additionally, within OML 130, we are opening up two injector wells, and we expect that that should bring up another 10,000 bpd in Q3 2023”, he added.
Tombomieye pointed out the presence of promising opportunities in the deep water sector, underscoring that NNPC Limited was collaboratively striving with its partners to secure conclusive investments for crucial major projects. One such project is the Bonga North field, forecast to contribute an additional 120,000 barrels per day to national production.
He emphasized that realizing these objectives necessitates a favorable investment environment. He further highlighted that the revamped structure of NNPC Limited establishes equitable conditions for investors, ensuring a balanced arena for all participants.
