NNPCL Hits Record-Breaking 1.8 Million Barrels Per Day in Crude Oil Production

NNPCL Hits Record-Breaking 1.8 Million Barrels Per Day in Crude Oil Production

“I need to make this clarification because of the reports in the media that our OPEC quota is 1.5 million...”

The Nigerian National Petroleum Company Limited (NNPCL) has achieved a historic milestone, reaching an all-time high of 1.8 million barrels per day in crude oil production. This impressive feat aligns with President Bola Tinubu's target and is expected to increase to 2 million barrels per day by December 2024.

The Nigerian National Petroleum Company Limited (NNPCL) has reached a major milestone, producing 1.8 million barrels of crude oil per day, as announced on Thursday, November 14. This achievement brings the company closer to its goal of two million barrels per day, set by President Bola Tinubu, which it aims to achieve by December 2024.

NNPCL's gas production has also seen significant growth, now standing at 7.4 million standard cubic feet per day, a notable increase from the 6.1 million standard cubic feet per day recorded earlier in the year. This enhanced gas production plays a crucial role in powering key infrastructure, including the Ajaokuta-Kaduna-Kano (AKK) pipeline.

Highlights of NNPCL's Achievements:

Increased Crude Oil Production: 1.8 million barrels per day, moving closer to the 2 million barrels per day target.

Improved Gas Production: 7.4 million standard cubic feet per day, up from 6.1 million standard cubic feet per day

Enhanced Energy Infrastructure: Increased gas production supports critical infrastructure like the AKK pipeline 

These accomplishments demonstrate NNPCL's commitment to boosting Nigeria's energy sector and meeting President Tinubu's production targets.

NNPCL's achievement of producing 1.8 million barrels of crude oil per day is a significant milestone that aligns with the government's budget. This accomplishment is a testament to the hard work and dedication of NNPCL's teams over the past few weeks.

Mele Kyari, NNPCL's Group Chief Executive Officer, had previously assured lawmakers during a session with the Senate Committee on Finance in December 2023 that the projections for crude oil production and the price benchmark for the 2024 budget were realistic and achievable. This assurance has now been validated with the company surpassing its production targets, a clear indication of NNPCL's commitment to meeting its goals.

NNPCL's progress demonstrates its strategic alignment with the government's objectives, ensuring that all aspects of the organization are working together to achieve its defined goals. This achievement is expected to have a positive impact on Nigeria's economy and potentially stabilize the naira.

Commenting on the market trends in connection with the projected budget benchmark price of $77.96 per barrel, Kyari remarked: “With what we see in the market today and potentially in the year 2024 and even beyond the next two years, it is very unlikely to see $70 per barrel oil in the market. The oscillation we are seeing, sometimes you do see prices coming down to $75 to the barrel and sometimes it goes above it, overall, benchmarks are averages. We think that the proposal by Mr. President around the $77.96 is still realizable in 2024.”

Regarding the crude oil production forecast, Kyari stated: “The number we have is 1.785mbpd. This is cumulative of all oil produced in the country. This figure is inclusive of all production including crude oil and condensate.

“I need to make this clarification because of the reports in the media that our OPEC quota is 1.5 million barrels per day. The OPEC quota is related only to crude oil. We also do between 250,000 to 300,000 barrels per day of condensate in our production. When you combine the two, the 1.78mbpd is realistic and realizable.”