Nigeria’s oil production hits 1.6m bpd, highest in months

The Nigerian National Petroleum Company Limited (NNPCL) said on Friday that Nigeria’s oil production has risen to 1.6 million barrels per day, its highest in months.

The NNPCL’s Group Chief Executive Officer, Mele Kyari, disclosed this at the company’s Final Cut over ceremony in Abuja.

The elated Kyari said Nigeria is on course to achieve an oil production level of 1.8 million barrels per day in the next two to three months.

The development suggests that the Nigerian government’s crackdown on oil thieves has started to yield results.

He said: “I know that it is not far away probably two to three months maximum, but we will be there and that will bring back partners to invest, return the confidence of our investors, and ultimately bring back growth.

Kyari expressed optimism that the company would continue to perform well despite the challenges, citing peers in other countries who had declared $9 billion in profits.

READ ALSO: Nigeria’s oil production drops to new low, as price averages $117.25

The NNPCL chief added: “We will catch up with them by reducing our costs, growing our production, being prudent in our commercial decisions, being fair to our partners, and in line with the provisions of the PIA, over 90 percent of its differences with partners have been resolved.”

On fuel subsidy, he said the landing cost for Premium Motor Spirit (PMS) otherwise known as petrol was N350 per litre and it was transferred to customers at N130 per litre leaving a deficit of N202.

“By base computation, N202 multiplied by 66.5 million liters multiplied by 30 will give you over N400 billion of subsidy every month; there is a budget provision for it but it is also a drain on our cash flow when we do not get refunds from the ministry of finance,” he concluded.

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