Good News for Naira As NNPC Reports Increase in Oil Production, Discovers New Oil Well

Good News for Naira As NNPC Reports Increase in Oil Production, Discovers New Oil Well

  • Nigeria's crude oil production has increased, the Nigerian National Petroleum Company Limited (NNPCL) has reported
  • The national oil company said that the latest figure is a massive jump from the previous month
  • A new report from OPEC also showed that Nigeria has regained its top position among African oil producers

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian National Petroleum Company Limited (NNPCL) has announced an increase in Nigeria's oil production.

According to Mele Kyari, the NNPCL's group chief executive officer, Nigeria now produces 1.7 million barrels per day.

Crude oil production in Nigeria increases
Nigeria reports a rise in crude oil production Credit: Bloomberg/Contributor
Source: Getty Images

This represents a significant increase compared to the 1.28 million barrels per day reported in April.

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Nigeria's crude oil production faces threats

During a stakeholder engagement between the Nigerian Association of Petroleum Explorationists and the NNPCL, Kyari blamed the low production output over the years on oil theft and vandalism.

Punch reports that the NNPCL boss emphasised the need to fight insecurity in the oil and gas sector to increase production.

His words:

"How do you increase oil production? Remove the security challenges in our onshore assets.
"The security challenge is a significant issue, encompassing more than just theft; it also involves ensuring the infrastructure can support the required volume for the market.
"No one will invest in oil production if there is uncertainty about the product reaching the market. In the past two years alone, we have eliminated over 5,800 illegal connections from our pipelines.

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Nigeria discovers another oil well

Legit.ng previously reported that the Nigerian National Petroleum Company Exploration and Production Limited (NNPC E&P Ltd), a subsidiary of NNPC and Natural Limited Oilfield Services Limited (NOSL), announced the successful commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom state.

The NNPC announced this in a statement signed by its chief corporate communications officer, Olufemi Soneye, on Sunday, May 12, 2024.

It said the production, which began on May 6, 2024, with about 6,000 barrels of oil, is expected to be ramped up to 40,000 barrels daily by May 27, 2024.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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