The Nigerian National Petroleum Company Limited (NNPCL) has announced that it has achieved a crude oil production level of 1.8 million barrels per day.
The state-owned oil company made this announcement on Thursday and stated that it aims to reach a target of two million barrels per day by December 2024, as set by President Bola Tinubu.
Additionally, the NNPCL reported that it is now producing 7.4 million standard cubic feet of gas to support its gas infrastructure, particularly the AKK project. This production represents an increase from 6.1 million standard cubic feet earlier in the year.
The NNPCL emphasized that this achievement aligns with the government’s budget and reflects the commitment of its teams over the past weeks.
During an interactive session with the Senate Committee on Finance at the National Assembly in December last year, the Group Chief Executive Officer (GCEO) of the Company, Mr. Mele Kyari, assured that the projections on crude oil production and price benchmark for the 2024 Budget were realistic and realizable.
Speaking on the dynamics of the market in relation to the projected budget benchmark price of $77.96 per barrel, Kyari said: “With what we see in the market today and potentially in the year 2024 and even beyond the next two years, it is very unlikely to see $70 per barrel oil in the market.
‘’The oscillation we are seeing, sometimes you do see prices coming down to $75 to the barrel and sometimes it goes above it, overall, benchmarks are averages. We think that the proposal by Mr. President around the $77.96 is still realisable in 2024.”
On the crude oil production projection, Kyari had stated: “The number we have is 1.785mbpd. This is cumulative of all oil produced in the country. This figure is inclusive of all production including crude oil and condensate.
“I need to make this clarification because of the reports in the media that our OPEC quota is 1.5million barrels per day. The OPEC quota is related only to crude oil. We also do between 250,000 to 300,000 barrels per day of condensate in our production. When you combine the two, the 1.78mbpd is realistic and realisable.”
