According to the latest data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria experienced a significant decline in oil production during July 2023. The average daily oil production for the month dropped by 13.6%, settling at 1.08 million barrels per day, compared to the 1.25 million barrels per day recorded in June. This downturn presents a notable challenge for the government, as it falls short of the 1.69 million barrels per day production target outlined in the 2023 budget. Additionally, the volume of production is notably below the country’s allocated OPEC quota of 1.7 million barrels per day.
The recent NUPRC data, disclosed yesterday, highlighted that the daily production of blended and unblended condensate oil in July reached 38,258 barrels and 174,509 barrels, respectively. However, it’s important to note that condensate oil production does not contribute to Nigeria’s OPEC production quota.
In total, the average daily oil production for July stood at 1.29 million barrels per day, representing a 12.8% decrease when compared to the total average daily production of 1.48 million barrels recorded in June.
The Nigerian National Petroleum Corporation (NNPC) Limited had initially projected an oil production target of 1.8 million barrels per day by the fourth quarter of this year. These projections are based on measures implemented to enhance production that are beginning to yield results.
During a session at the Nigeria Oil Gas Energy Week in Abuja, Engr. Adokiye Tombomieye, the Executive Vice President, Upstream at NNPC Ltd, revealed the updated target. The plan is to reach the 1.7 million barrels per day mark by the end of the third quarter. Tombomieye highlighted that these production goals would be achieved through various strategies, including maintaining asset integrity, increasing production, conducting well interventions, initiating new drilling operations, improving crude oil evacuation methods, and enhancing security measures.
He emphasized that promising opportunities exist in the deepwater sector and mentioned that NNPC Limited is collaborating with its partners to secure final investments for key major projects. One such project is the Bonga North field, which has the potential to contribute an additional 120,000 barrels per day to the national production. Tombomieye stressed the importance of creating an investment-friendly environment and noted that the revamped structure of NNPC Limited ensures fairness for all investors.
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