Nigeria's oil production has dropped but minister says no cause for alarm

News Agency Of Nigeria

April 12, 2024 8:13 PM

Lokpobiri said Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day (bpd) before these developments, would soon be restored.

Nigeria's oil production has dropped but minister says no cause for alarm

The Federal Government says measures are being put in place to restore oil production given recent concerns regarding the shortfall in oil production in Nigeria in the first quarter of 2024.

Senator Heineken Lokpobiri, Minister of State for Petroleum Resource (Oil) said this in a statement by his Special Adviser, Media and Communications, Nneamaka Okafor, on Friday in Abuja.

He said the Federal Government was actively engaged in policy evolution aimed at maximising the utilisation of all available wells in Nigeria.

The minister clarified that the oil production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in Nigeria.

“In response to recent concerns regarding a shortfall in oil production in Nigeria during the first quarter of 2024, measures are being taken to address the situation to, not only restore production to previous levels, but to also increase it.

“The issues have been adequately addressed, and production is expected to return to its previous levels in the coming days,” the minister said.

Lokpobiri said Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day (bpd) before these developments, would soon be restored.

“Furthermore, the Ministry of Petroleum Resources is actively engaged in policy evolution aimed at maximising the utilisation of all available wells in Nigeria.

“This strategic approach will enable the country to ramp up production, thereby generating vital revenue to stabilise the nation’s foreign exchange reserves.

“The increased revenue will also empower the government to fulfil its commitments in providing essential infrastructure, as outlined in the 2024 budget,” he said.

He further assured of renewed hope as Nigeria navigates through these challenges.

He urged all to remain committed to ensuring the sustainability and growth of Nigeria’s oil sector, which plays a crucial role in driving the nation’s economy.

The Monthly Oil Market Report (MOMR) for April 2024, released by the Organisation of Petroleum Exporting Countries (OPEC) revealed that the country’s oil production recorded a second consecutive decline since the beginning of 2024.

The OPEC MOMR indicated that the country produced 1.322 million barrels per day of crude in February 2024 but this dropped to 1.231mbpd in March, representing a decline of 91mbpd.

News Agency Of Nigeria