Oil production rises to 1.7m bpd as theft reduces drastically

Tuesday, 18 February 2025 04:49

Oil production rises to 1.7m bpd as theft reduces drastically - FG

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Oil production rises to 1.7m bpd as theft reduces drastically - FG

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported a significant reduction in oil theft across the country, with daily losses now at approximately 5,000 barrels per day (bpd). This improvement has contributed to a steady increase in oil production, which now stands at 1.7 million bpd.

NUPRC Chief Executive Gbenga Komolafe shared these developments in Abuja on Saturday, according to a statement released by Olaide Shonola, Head of Public Affairs and Corporate Communications at NUPRC.

"Through kinetic and non-kinetic interventions, oil theft has significantly reduced to 5,000 bpd, leading to a steady production increase to 1.7 million bpd," Komolafe stated.

Komolafe highlighted Nigeria's position in the global oil and gas sector, noting that the country holds Africa's second-largest oil reserves at an estimated 37.5 billion barrels, while maintaining the continent's largest gas reserves at 209 trillion cubic feet (TCF). Current oil production averages 1.75 million barrels daily, with gas production at 7 billion standard cubic feet per day (SCFD).

Acknowledging past challenges, Komolafe referenced the drastic decline in production to 1.1 million bpd in 2022 due to oil theft. The government has now launched the Project 1 MMBOPD initiative, aiming to increase production by an additional 1 million bpd by December 2026. This project focuses on collaboration between operators, service providers, financiers, and host communities.

The Nigeria Gas Flare Commercialisation Programme (NGFCP) remains central to the country's energy transition strategy, according to Komolafe. The program focuses on eliminating routine gas flaring, reducing methane emissions, and promoting carbon capture technologies, while the carbon credits earning framework seeks to monetize decarbonization efforts.

The positive developments come after the Nigerian National Petroleum Company Limited (NNPC Ltd) declared a state of emergency on crude oil production on July 2, 2024, with the goal of increasing production and growing reserves. The government has also approved $21 million for metering 187 oil flow stations throughout the Niger Delta region to enhance monitoring of crude oil production and distribution.