Tinubu To Increase Nigeria’s Crude Oil Production To 2.6 Million BPD If Elected – APC

The All Progressives Congress (APC) Presidential Campaign Council (PCC) has said that its presidential candidate and former governor of Lagos State, Bola Tinubu, has set target to increase Nigeria’s crude oil production to 2.6 million barrels per day (mbpd) by 2027, if elected in the 2023 presidential election.

According to APC in a statement signed by its Director of Public Affairs and Chief Spokesperson, Tinubu/Shettima Presidential Campaign Council, Festus Keyamo, with Tinubu’s over a decade experience at the height of the international oil and gas industry as a private citizen, he would deliver on the set target.

“The excellent strides of the APC Administration in the oil sector shall be further expanded by our candidate, H.E. Asiwaju Bola Ahmed Tinubu . Recall that ASIWAJU served for over a decade at the zenith of the international Oil & Gas industry as a private citizen and is best placed to achieve his target of 2.6m barrels per day by 2027. ASIWAJU seeks to achieve this through enhanced investments in the sector and active stakeholders’ engagement – a move he has already begun with the historic visit to Gbaramatu Kingdom in Delta State last week,” the party said.

Nigeria’s crude oil production volume, which was about 2.2 mbpd in 2019, suffered a rapid drop in the first quarter of 2020, a development that was attributed to the outbreak of Covid-19 pandemic and vandalisation of pipelines, leading to shut-ins, as well as oil theft in the Niger Delta region.

One of the major challenges facing oil and gas companies in Nigeria is oil theft. Losses as of 2019 was in the region of 30 percent. However, oil theft in the Niger Delta took a new dimension sometimes this year, with losses in the region of 80-90 percent, forcing companies to declare force majeure.

Some months ago, Shell and Eni declared force majeure on their export terminals as a result of vandalisation of their pipelines by oil thieves.

The country’s crude oil production averaged 1.183 mbpd in July, according to the Organisation of Petroleum Exporting Countries (OPEC) in its Monthly Oil Market Report for August 2022. The figure represents an increase of 7,000 barrels per day when compared with 1.176mbpd average production in the month of June.

In August, the country’s crude oil production maintained its dropping streak, to average 1.100 mbpd. OPEC said that the figure represents a decrease of 64,000 barrels per day when compared with 1.183mbpd average production in the month of July.

It was worse in September, as the country’s crude oil output was just 938,000 bpd, while total liquids production averaged 1.14 mbpd.

To address the problem of oil theft in the Niger Delta region, the Federal Government, through the Nigerian National Oil Company (NNPC) Limited, few months ago awarded pipeline surveillance contract to an ex Niger Delta militant, Government Ekpemupolo, otherwise known as Tompolo.

Tompolo’s security outfit, Tantita Security Services Nigeria Limited (TSSNL), has uncovered several illegal pipelines in recent weeks, which has reduced theft and led to increase in production.

Nigeria’s crude oil production volume is currently about 1.5 mbpd. The party commended President Muhammadu Buhari, the Minister of State for Petroleum Resources, Timipre Sylva; NNPC Limited and security agencies for the increase in volume. It expressed optimism that the country will achieve 1.7 mbpd production volume by the end of this year.

“We are equally enthused to note that we are expected to achieve 1.7m barrels per day production by the end of this year which places our nation almost in full compliance with the OPEC quota,” APC stated.

“We applaud Mr. President as he finishes strong in the sector and assure Nigerians of the preparedness of ASIWAJU to take this to the next level.”