More Foreign Exchange For Nigeria As NNPC Targets 1.8 Million Barrels Per Day Oil Production

The Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari has said that Nigeria will ramp up oil production to 1.8 million barrels per day by the end of 2021.

The CEO said this on Tuesday while speaking to Bloomberg TV from Abu Dhabi, the United Arab Emirates.

In September this year, Nigeria pumped 1.45 million  barrels per day, a quantity which is 300,000 barrels lower than its production levels before the Covid-19 pandemic.

Nigeria has a maximum crude oil production capacity of 2.5 million barrels per day.

In Nigeria, over 90 per cent of foreign exchange revenues comes from oil and it is expected that more output will increase the country’s chances of getting more dollars to support reserves.

Kyari said, “It is very obvious that by the close of the year we would get back to the 1.7-1.8m barrels per day from crude only. As you may be aware, when we mention these figures, I am talking about crude oil only.

“We do produce condescents and when we combine this, we can easily hit the 2.0 million at the end of the year.

“The fact is very clear, during the Covid-19, we shut down some of these wells and they naturally dont get back when you want them to and how you want them.

“That is what we are trying to do because we do have some challenges around the facilities and these are being taken care of. There is enormous work and intervention going on that will get us back before the end of the year.”

The CEO further explained that the Covid-19 pandemic led to drought in investment into the Nigerian oil  sector.

According to him,  for Nigeria, the lack of clarity in the sector before the signing of the Petroleum Industry Act compounded the investment challenges.

President Joe Biden is battling rising pressure including from fellow Democrats to address rising gasoline prices by banning oil exports.

On the impact on prices, Kyari explained that the ban would lead to a jump in prices in the international oil market.

But the CEO said crude oil prices may not sell as high as $100 per barrel by the end of the year-end.

He said, “Potentially I see post $80 p/b and below $100 p/b, but surely $100 p/b is within sight. That looks too ambitious. Yes, $100 p/b looks like it, but I don’t see $100 p/b in the short time.”