Business
NNPC clarifies oil production figures, addresses perceived discrepancies
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that its crude oil production data aligns with figures from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), dismissing reports of discrepancies between the two institutions.
In a statement released on Monday, Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., explained that the apparent variation arose from differences in reporting periods.
While the NUPRC reported an average production of 1.54 million barrels per day (mbpd) for September 2024, NNPC Ltd.’s figure of 1.8 mbpd represents peak production for October 2024.
The clarification comes amid recent comments by NUPRC Chief Executive Officer, Mr. Gbenga Komolafe, who confirmed during the 42nd Nigerian Association of Petroleum Explorationists (NAPE) Annual International Conference in Lagos that Nigeria’s crude oil output, including condensates, increased by 16.56% in October, rising from 1.54 mbpd in September to 1.8 mbpd.
“This represents an increase of 253,710 barrels per day. The 1.8 mbpd milestone exceeded Nigeria’s OPEC production quota of 1.5 mbpd,” Komolafe stated, affirming that both institutions’ data align when contextualized.
READ ALSO: Fuel price hikes: NNPCL’s antic to sabotage Dangote, Nigerians
Soneye emphasized that NNPC Ltd. remains committed to increasing production to 2 mbpd by the end of 2024, working closely with industry stakeholders to address challenges such as oil theft, pipeline vandalism, and underinvestment in the sector.
He noted, “There is no disparity in the figures. NNPC Ltd. and the regulator are aligned, and we are taking steps to sustain the production momentum and improve Nigeria’s energy sector outlook.”
The clarification follows skepticism over NNPC Ltd.’s earlier claim of achieving 1.8 mbpd in November without accompanying data to support the assertion. Newly released figures from the NUPRC put Nigeria’s total production at 1.53 mbpd, further fueling debate on the reliability of the data.
Nigeria has long struggled to meet its OPEC production quota, facing persistent issues that have undermined output.
However, if the reported surge to 1.8 mbpd holds true, it could signify a turning point for the country’s oil sector, with potential benefits including economic growth, improved naira stability, and increased foreign exchange earnings.
The oil sector’s improved performance in October signals cautious optimism for Nigeria’s economy.
Achieving sustained output growth will depend on resolving systemic challenges while leveraging international partnerships and technological investments to enhance production efficiency.
As the nation seeks to stabilize its oil sector and capitalize on rising output, industry stakeholders are optimistic that Nigeria can achieve its long-term production targets, solidifying its position in the global energy market.