The Nigerian National Petroleum Corporation (NNPC) Limited has reported that it achieved a crude oil production of 1.8 million barrels per day (bpd) and 7.4 billion standard cubic feet per day (scfd) in natural gas production in November 2024. This was disclosed by NNPC’s spokesperson, Olufemi Soneye, during a press briefing in Abuja on Thursday.
Additionally, the national oil company set an ambitious target of reaching 2 million bpd of crude oil production by the end of the year.
Achievements and Future Targets
NNPC’s Group CEO, Mele Kyari, congratulated the Production War Room Team for their efforts in recovering production levels and escalating output to meet targets. Kyari credited the recovery to collaborative efforts across the production chain and emphasized the importance of securing production assets, particularly pipeline infrastructure.
The company’s Senior Business Adviser, Lawal Musa, added that the significant milestone was achieved through a joint effort involving Joint Venture and Production Sharing Contract partners, as well as security agencies like the National Security Adviser’s office. Musa underscored the importance of security in the production process, stating that ongoing monitoring of pipelines was essential in ensuring production stability.
The NNPC is hopeful that it can sustain this momentum and achieve the 2 million bpd target by year-end, pending continued collaboration across all stakeholders.
Contradictions with OPEC Data
Despite NNPC’s claim of 1.8 million bpd production, OPEC‘s recent monthly report for October 2024 indicated that Nigeria’s crude output reached only 1.43 million bpd. This discrepancy raises questions about the accuracy of NNPC’s reported figures, especially since no independent data or confirmation from regulatory bodies like the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) or other external entities currently supports the 1.8 million bpd production claim.
Moreover, NNPC did not clarify whether the 1.8 million bpd figure included condensate (blended or unblended), which could inflate the total production number.
Potential Impact on Nigeria’s Economy
An increase in crude oil production is significant for Nigeria’s foreign exchange earnings, which could provide a boost to the country’s economy, especially by helping stabilize the naira in the foreign exchange market. Given that Nigeria is a major oil exporter, any rise in production translates to higher revenue from oil exports. This would be crucial in addressing the current FX volatility that has been negatively impacting the naira, with the local currency trading at historically low levels.
While NNPC’s claim of reaching 1.8 million bpd in November is a positive indicator of the country’s oil production recovery, the discrepancy with OPEC’s reported figures for October suggests that further scrutiny and independent verification may be required to confirm the extent of the recovery. If confirmed, however, the increase in production could significantly aid Nigeria’s foreign exchange earnings and provide economic stability, particularly in light of the ongoing currency challenges.
