The latest report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that the nation’s crude oil production increased marginally to 1.5million barrel per day with condensates in June 2024, from the 1.4million barrel per day with condensates produced in May 2024.
This was contained in the June 2024 Oil Production Status Report released by the Commission on Monday.
However, the average crude oil production, excluding condensates, grew to 1.2mbpd in June 2024, compared to 1.25mbpd produced in May 2024, which is below the Organisation of Petroleum Exporting Countries (OPEC) quota of (1.5mbpd without condensates).
The oil and gas industry in Nigeria has been facing declining daily production since the beginning of this year.
At the recently concluded 2024 Oil and Gas (NOG) Energy Week in Abuja, the Independent Petroleum Producers Group (IPPG) and other stakeholders called for an urgent action to address the dwindling production levels and under-investment in the sector.
Particularly, the Chairman of IPPG, Abdulrazaq Isa, noted that the reserve to production ratio was extremely low and a clear indicator that the industry is in a dire situation posing a risk to the implementation of the national budget and domestic refining capacity.
The Oil Producers Chairman noted that it was against this frightening backdrop that the IPPG is calling for urgent measures to be undertaken by all relevant stakeholders to immediately arrest this development stressing that “as a matter of national importance, Nigeria must act fast and hasten the pace of recovery across the entire industry”.
In a major step to address crude oil theft, and dwindling crude oil production in the country, the Federal Government recently awarded a contract worth $21 million for the installation of meters in 187 flow stations in the Niger Delta.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri who disclosed this while addressing newsmen on Friday in Abuja said the intent was to monitor and ensure accountability of the volume of crude oil that is produced and exported out of the country.
Senator Lokpobiri, who said the installation project is expected to be delivered in six months, also disclosed that plans are on to meter the over 2,000 wellheads in the country.
“Securing the Federal Executive Council’s approval for contracts to meter our flow stations and the advanced cargo system marks an important achievement. These measures are vital steps toward ensuring accountability in our production processes and transparency in our sales.
“As we continue to forge ahead, we remain committed to implementing more initiatives that will bolster our operational efficiency and sustain our growth trajectory. Our recent accomplishments reflect our dedication and set a solid foundation for future success”, he said.
