The Chief Executive officer of the Nigerian National Petroleum Company Limited (NNPC) Limited, Bayo Ojulari, has disclosed that with cited growth in refinery capacity and improved production, the crude oil production quota of1.5 million barrels per day (bpd) will jump to two million bpd by 2027, reportsBusiness Today NG
This, according to Ojulari him, will push for a 25 per cent increase in Nigeria crude oil production quota.
A London-based independent provider of market intelligence and price benchmarks for global commodity and energy markets, Argus Media quoted NNPC boss to have said.
According to Argus Media, Ojulari stated that Nigeria’s current production is slightly below the quota at around 1.4 million bpd, with condensate production adding another 250,000 bpd, bringing the total output to approximately 1.65 million bpd.
It also added that the NNPC is targeting a capacity of 2.4 million bpd and production of two million bpd by 2027, with 1.7 million bpd being crude and 300,000 bpd being condensate.
The push for a higher quota comes as the OPEC+ group embarks on a new campaign to update and refresh each member country’s maximum sustainable production capacity.
Nigeria has previously struggled to meet its existing targets due to infrastructure and operational issues, but with these issues largely resolved, the country is looking to make a renewed attempt to argue its case for a higher quota.
According to Ojulari, the recent commissioning of the 650,000 bpd Dangote refinery and the addition of 500,000 bpd of modular refining capacity at different stages of progress will significantly increase Nigeria’s refining capacity.
“We believe that with the increased demand being created in-country, we are now in a better position to also seek from OPEC to increase our production quota,” Ojulari said, as quoted by Argus Media.
The NNPC is hopeful that its request for a 25 per cent increase in production quota will be granted, with Ojulari stating that the outcome will depend on the success of their discussions with OPEC.
