• Tuesday, May 21, 2024
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BusinessDay

FG blames declined crude production on Trans Niger pipeline, others

Green Energy’s contribution to Nigeria’s oil sector development laudable – Minister

Heineken Lokpobiri, Nigeria’s minister of state for petroleum (Oil), says the shortfall recorded in crude oil production in the first quarter of 2024, was due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in Nigeria.

Lokpobiri said in a statement by Nneamaka Okafor, his special adviser on media and communications, on Friday.

The Trans-Niger Pipeline (TNP), located in Rivers State is operated by Shell Petroleum Development Company Joint Venture (SPDC JV).

Nigeria’s crude oil production, according to the Organisation of Petroleum Exporting Countries (OPEC), declined to 1.2 million bpd in March, a further decline from 1.4 million bpd in January and 1.3 million bpd in February. This is a far cry from the 1.78 million bpd target for 2024.

The minister, however, assured that measures were being taken to address the situation and restore production to previous levels and surpass it.

“The ministry of petroleum resources is actively engaged in policy evolution aimed at maximising the utilisation of all available wells in Nigeria.

“This strategic approach will enable the country to ramp up production, thereby generating vital revenue to stabilize the nation’s foreign exchange reserves. The increased revenue will also empower the government to fulfil its commitments in providing essential infrastructure, as outlined in the 2024 budget.

“The reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in Nigeria.

“The issues have been adequately addressed, and production is expected to return to its previous levels in the coming days,” he said.

He anticipated that Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day (bpd) before these developments, would soon be restored.