The Federal Government has announced an ambitious plan to increase Nigeria’s crude oil production by one million barrels per day within the next 12 to 24 months. This strategy aims to address key challenges in the sector, including oil theft, pipeline vandalism, outdated infrastructure, and the need to attract investment.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently reported a decline in production from 1.571 million barrels per day in August to 1.544 million in September, reflecting a 1.68% decrease. Despite this downturn, the government’s new initiative is designed to reverse this trend through targeted interventions.
At the launch of “Project 1MMBPD,” which coincided with NUPRC’s three-year anniversary, President Bola Ahmed Tinubu—represented by the Secretary to the Government of the Federation, Senator George Akume—emphasized that increasing oil production is crucial for boosting national revenue and accelerating economic growth.
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, also highlighted that the current target of one million barrels per day is insufficient. He urged industry stakeholders to aim for higher production levels, stating, “For a country that once produced over two million barrels per day, this additional one million target is unacceptable. We should be aiming for 2.5 million in the short term and four million barrels per day in the long term.”
Four Divestment Deals Approved, Shell Blocked
In his address, NUPRC Chief Executive Engr. Gbenga Komolafe announced that the government has blocked Shell’s $2.4 billion divestment of its onshore and shallow water assets to the local consortium Renaissance. However, four other divestment deals received government approval, including ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy.
“Out of the five divestment applications received by the Commission, four passed the regulatory test and secured ministerial consent,” Komolafe said. The approved deals include Equinor Nigeria Energy’s sale to Project Odinmin Investments, Nigerian Agip Oil Company’s sale to Oando Petroleum, and TotalEnergies EP Nigeria Limited’s sale to Telema Energies Nigeria.
written By: Believe Ovara