More headaches for Nigeria’s economy as oil production crashes to 1.15mbd

Nigeria’s position as Africa’s largest oil producer is now seriously under threat at a time oil prices are averaging $100 per barrel.

The Group Managing Director/CEO of NNPC Limited, Mallam Mele Kyari during the weekend revealed Nigeria’s oil production had crashed to 1.15 million barrels per day.

A huge drop when compared to OPEC quota of 1.73 million bpd and budget target of 1.88bpd.

Kyari disclosed this in his speech at the official presentations of Process Standardization ISO 22301: 2019 Business Continuity Management System (BCMS) and ISO 9001: 2015 Quality Management System (QMS) certificates to the National Petroleum Investment Management Services (NAPIMS) in Abuja.

According to him the increasing rate of vandalism had caused massive disruption in oil production, and currently at the worst level the country has ever witnessed.

He said, “as we speak now, there is massive disruption to our operations as a result of the activities of vandals and criminals along our pipelines in the Niger Delta area. This has brought down our production to levels as low as we have never seen before.

Read also: Nigeria’s economy on the brink of collapse – Sanusi

“Today, we are doing less than 1.15 million barrels per day simply because some criminals decided that they should have some infractions on our pipelines. That is clearly the biggest form of business disruption that we are facing today and this kind of engagements, the certifications that we have today around our systems and processes should be able to respond to this and part of the response is to bring in the best framework possible to contain the situation.”

Kyari however promised that NNPC was focused on delivering value and dividends to its shareholders following the passage of the Petroleum Industry Act (PIA).

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