Nigeria’s oil production is set to increase from 900,000 barrels per day to over 1.5 million barrels per day, according to Solomon Oseagah, an oil and gas expert. This optimistic forecast is attributed to recent government initiatives aimed at combating oil theft and improving security in the sector.
In an interview with journalists in Abuja, held on the sidelines of a forum discussing the future of Nigeria’s oil industry, Oseagah commended the efforts of President Bola Tinubu and the Group Chief Executive Officer of NNPC Ltd, Mele Kyari. He specifically highlighted the establishment of command and control centres by NNPC Ltd, which have led to the arrest of over 1,000 oil thieves currently awaiting judicial proceedings.
Oseagah emphasized that improved security measures are crucial to enhancing oil production, noting that output had significantly decreased in 2022 due to theft and vandalism. He praised the government’s proactive security strategies in oil-producing regions, which he believes have already started to yield positive results.
He also pointed out that major oil companies are now planning significant expansions. Seplat Energy, following its acquisition of Exxon Energy, aims to double its production to 120,000 barrels per day. Meanwhile, Oando is targeting an increase from 40,000 to 100,000 barrels per day.
Additionally, Oseagah revealed that the leadership of Nigeria’s upstream oil sector is working to increase the country’s OPEC quotas. By leveraging relationships with the European Agency for Energy Security, Nigeria hopes to further enhance its oil output.
“The government’s focus on improving security in oil-producing areas, along with the establishment of command centres to monitor assets in real-time, is yielding positive results,” Oseagah said. “This boost in production will enable Nigeria to generate more revenue, stabilize the currency, support foreign exchange reserves, and fund the national budget more effectively without excessive deficits.”
As part of the expansion plans, Seplat Energy is expected to raise its production to 120,000 barrels per day within the next six months, while Oando aims to increase its output to 100,000 barrels per day within the next few years following acquisitions from international players.
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