The Nigerian National Petroleum Company Limited (NNPCL) has announced that it is possible for Nigeria to increase its crude oil production from 1.7 million barrels per day to an impressive 3 million barrels per day.
This statement comes amidst ongoing challenges with oil theft and pipeline vandalism that have plagued the country’s oil sector for years.
At a recent Stakeholders Engagement Session in Abuja, Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, expressed optimism about this target. He emphasized that with the right support from all stakeholders, the goal is within reach.
“Three million barrels of oil production per day is achievable in Nigeria if all the stakeholders work in synergy,” Soneye stated.
He stressed the importance of collaboration between government agencies, private security firms, oil companies, and host communities. This unity is crucial in the fight against oil theft, which has significantly impacted Nigeria’s oil production capacity.
Soneye noted that this concerted effort has already helped increase daily oil production from 1.4 million barrels to 1.7 million barrels.
He reflected on a time when production levels plummeted to an alarming 900,000 barrels per day due to rampant oil theft. “At that time, we felt Nigeria was in trouble as far as oil theft was concerned,” he recalled.
The involvement of private security agencies and renewed military efforts have played a significant role in improving the situation.
In a detailed presentation on the ongoing challenges, Deputy Manager at the NNPC Command and Control Centre, Murtala Muhammad, highlighted the seriousness of oil theft in Nigeria. He reported the discovery and destruction of over 8,000 illegal refineries and 5,800 illegal pipeline connections within the last six months alone.
Muhammad identified several states, including Bayelsa, Rivers, Imo, and Abia, as hotspots for these illegal activities. These areas have faced severe impacts from oil theft, which not only affects the economy but also the environment.
The economic implications of oil theft are vast. Nigeria relies heavily on oil exports for its revenue. When production decreases due to theft and vandalism, the country’s economy suffers.
“Without a doubt, oil theft has a devastating effect on Nigeria’s economy,” Muhammad stated. “It leads to significant losses in revenue, which could have been used for development.”
The NNPC’s vision for increasing production is also tied to ensuring a secure environment for oil operations. “With the expected synergy from all the relevant stakeholders, we can create an enabling environment for optimal oil production,” Soneye added.
“Together, we can overcome these challenges and make Nigeria a leader in oil production once again,” Soneye urged.
For many Nigerians, the prospect of increased oil production is promising. It could lead to more revenue for the government and potentially create jobs in the oil sector and related industries.
