Nigerian govt laments failure to meet 2.5m daily crude oil output, gives reasons

The Federal Government revealed on Wednesday that Nigeria’s oil production is currently roughly one million barrels per day below its technically permissible potential.

It blamed problems including a lack of investments, uncertainty, and a decline in hydrocarbon funding brought on by the energy transition, among others, for the poor oil output.

The Nigerian Upstream Petroleum Regulatory Commission announced this on behalf of the government during the host communities’ sensitization workshop with the theme “The Implementation of The Host Communities Development Trust,” which was held in Abuja.

The Chief Executive, NUPRC, Gbenga Komolafe, stated, “While the commission is prioritising efforts towards increasing oil and gas production and ensuring maximum federation revenue through the optimisation of oil and gas value chain, the efforts have been constrained by a myriad of challenges.

“These challenges range from insecurity, low investment, and de-prioritisation of funding of hydrocarbon development arising from the energy transition. Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day.”

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Komolafe added that the workshop would raise awareness of the host community provisions in the Petroleum Industry Act 2021 and serve as a forum for knowledge exchange in this regard.

He asserted that the provisions would be carried out in a way that would benefit the residents of the Niger Delta and other towns that are host to the production of oil and gas.

“Our objective in this workshop is to create further awareness on this very important piece of legislation and provide updates on the commission’s activities geared towards the implementation of the regulations for Nigeria oil and gas industry.

“It is to provide a clear roadmap for the implementation of the Host Communities Development Trust to enhance peaceful and harmonious co-existence between oil and gas industry operators and host communities, and ultimately support the development of host communities,” the NUPRC boss stated.

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