SUCCESS NWOGU 
The target by the Federal Government to ramp up oil production to 3 million liters per day has been accompanied with different strategies, SUCCESS NWOGU writes
Federal Government’s ambitious crude oil production target of 2.06 million barrels per day in the 2025 budget has once more underscored the need to adopt proactive and effective measures to ramp up Nigeria’s crude oil production.
The budget’s crude oil target was less than the initial projection. The Minister of Defence, Dr. Mohammad Badaru Abubakar, speaking recently at 6 Division Nigerian Army Barracks in Port Harcourt, said FG had set a target to increase oil production per day to 2.3 million per day by mid-2025.
He claimed that the current oil production had risen from one million barrels to 1.6 to 1.7 million barrels. Abubakar said: “I believe we are now at about 1.6 to 1.7 million barrels as against 1.4 million barrels that we were on.
And I believe that by the end of the year, we will see ourselves around 1.9 to two million barrels. “And by the middle of next year (God’s willing) we will be producing about 2.3 million barrels.
With the arrangement that I have seen in place, and with the efforts the Arm Forces are putting in the efforts of the Chief of Defence Staff and the service Chiefs and course with the encouragement from the President.
“The oil production has to continue to increase and I assure you before the end of the year we will see a tremendous increase in the oil production in this country.”
3m barrels per day target
The Nigerian National Petroleum Company Limited (NNPC Ltd) said that crude oil production output of three million barrels per day was achievable up from the current 1.7million.
The Chief Corporate Communications Officer (CCCO) of NNPCL, Olufemi Soneye, stated this in an address at a stakeholders engagement for journalists covering the National Assembly in Abuja.
Soneye said the feat was attainable with support from all critical stakeholders. He said the political will towards the target was already provided by President Bola Tinubu with directives to relevant security agencies to stem the ugly tide of oil theft and pipeline vandalism, which, according to him, led to increase in daily oil production from 1.4 million to 1.7milliion barrels per day.
Soneye said: “Three million barrels oil production per day is achievable in Nigeria if all the stakeholders work in synergy for that purpose from the security agencies both government and private owned, to oil companies and host communities.
“With expected synergy from all the relevant stakeholders on war against oil theft and pipeline vandalism, the required enabling environment would be in place for optimal oil production to the volume of 2.5 to three million barrels per day.”
He lamented that at a point, oil production dropped to 900,000 barrels per day in the country before the engagement of private security agencies and renewed efforts of the military.
“At that time, we felt Nigeria was in trouble as far as oil theft was concerned but, the intensity of war against it, has allayed our fears,” he said.
According to OPEC’s Monthly Oil Market Report for November, using direct communication, Nigeria crude oil production increased by 152,000 barrels per day from 1.333million barrels per day (mbpd) in October to 1.486mbpd in November.
Nigeria’s average crude oil production in September fell by 27,000 barrels from 1.352mbpd in August to 1.324 million barrels per day in September, 2024 using direct communication.
For August, Nigeria’s oil production increased by 30,000 barrels per day from 1.276million barrels per day in June to 1.307mbpd in July; 1.251mbpd in May; 1.281mbpd in April; 1.231mbpd in March; 1.322mbpd in February; 1.427mbpd in January, 2024 and 1.327mbpd in December, 2023.
Production increase
In efforts to boost crude production, Vice President Kashim Shettima recently commissioned a new Floating Production, Storage and Offloading vessel by Oriental Energy Resources Limited.
He represented President Bola Tinubu at the Drydocks World Dubai Shipyard in Dubai, the United Arab Emirates. Sources said the vessel, named ENEM FPSO, with a storage capacity of one million barrels, would kick off with an initial production of 17,000 barrels per day before increasing its production capacity to 30,000 bpd.
A statement by the Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, said the development aligned with the president’s efforts to revitalise the nation’s oil and gas sector. He added that the government aims to
it is estimated that oil theft costs Nigeria millions of dollars each month; and that about $23bn in oil revenue was lost in 2022
optimise production, reduce dependence on foreign imports and generate more revenue. According to him as Nigeria’s home-based refineries come alive, vessels like this would be instrumental in maximising the nation’s production capacity and driving economic growth.
Shettima said: “This FPSO vessel is more than just a technological achievement; it is a symbol of Nigeria’s ambition and our readiness to meet global energy demands.
Under President Tinubu’s leadership, we are witnessing the transformation of the oil and gas sector, which is central to our economic revitalisation efforts.
“He stated that the vessel is a critical link in Nigeria’s ambition to optimise productivity, enabling the country to become a central hub for hydrocarbon demand, both domestically and globally.”
He stated: “Over the decades, Alhaji Muhammadu Indimi has stood as a model businessman and symbol of excellence in the oil and gas industry.
So, it’s not surprising that his vision has transformed Oriental Energy Resources Limited into a global phenomenon. “This outcome testifies to what is possible when ambition is matched with perseverance and expertise.
His journey reminds us that Nigeria is a land of opportunity, and with dedication, there is no limit to what we can achieve.
“Just about two weeks ago, His Excellency, President Bola Ahmed Tinubu, was in Paris, where he oversaw the expansion of one of Nigeria’s indigenous banks into that sphere of the European financial market.
That historic moment reflected our collective aspiration as a nation. “This FPSO vessel symbolises a future where Nigerian ingenuity meets global standards, and we will be here every step of the way to ensure its utility and success.”
Executive Chairman, Oriental Energy Resources Limited, Muhammadu Indimi, said the facility was the first FPSO to be fully funded by a Nigerian indigenous company.
He explained that the vessel named ENEM FPSO, has heralded an effort for an indigenous Nigerian oil and gas company to independently develop a marginal field, stressing that it is an important milestone for Nigeria and its indigenous oil and gas sector.
“When operating at full capacity we expect the Okwok Oil Field to produce up to 30,000 barrels of oil a day, significantly enhancing Nigeria’s oil production and contributing to the government’s ambition to increase oil revenue to fund Nigeria’s development.
“The Okwok field is just one step towards our long-term ambition to deliver 100,000 barrels of oil per day of production in Nigeria.
We have a strong set of proven assets and a development pipeline that can deliver it,” he said.
Oil theft
Though Nigeria is one of Africa’s leading crude oil exporters, the large-scale oil theft has posed a major threat to national economy as it is estimated that oil theft costs Nigeria millions of dollars each month; and that about $23bn in oil revenue was lost in 2022.
The Governor of River State, Siminalayi Fubara, recently donated 6 gun boats to the Nigerian Navy as one of the strategies to combat oil theft and economic sabotage.
Sources said the gunboats will enhance waterway patrols and response times, especially near submerged oil export pipelines that are prone to attacks.
The governor noted that oil theft is a big problem that needs all hands on deck to tackle it. He explained that the six gunboats donated by the River State government are meant to support the Nigerian Navy to ensure that the nefarious activities of oil thieves are drastically reduced.
Fubara said: “We have set up local vigilantes to support the protection of oil facilities, acquired gunboats, and [are] protecting the ecosystem of the region.
“We are doing our best to discourage any form of economic sabotage, which is why the country’s output has increased in recent months given our support and protection of pipelines.”
“What we need is a total reorientation of the people to discourage them from stealing oil. It’s a bad situ – ation because you have children as young as 14 and 15 involved.”
Illegal refineries
NNPC Ltd maintained that the war against crude oil theft and oil pipelines vandalism has been on course, adding that the company and public and private security operatives have intensified efforts to rid the nation of oil thefts.
In a post on its X it explained that between November 30 and December 6, it uncovered at least 34 illegal refineries and 17 illegal pipeline connections in one week across the Niger Delta region and that it recorded a total of 94 oil theft incidents in parts of Bayelsa, Rivers, and Abia States.
It added that a massive illegal storage site was uncovered in Okrika 7 of River State where officials found crude oil stored in sacks ready for the black market and that illegal crude oil storages were also reportedly discovered in Igi 3, Ibudiya 1, Eborcha, and Ukua.
It said: “In a series of coordinated operations, illegal pipelines were discovered and dismantled at key hotspots – Ogboingbiri, Ejehinkiri, Alabelema in Bayelsa state.
“And Okrika 7 in Rivers state witnessed swift action as security forces uncovered an illicit setup used by perpetrators to exploit Nigeria’s resources.
“Repairs were carried out promptly restoring the pipelines to full functionality and fortifying the nation’s hydrocarbon infrastructure.”
It added: “The Crackdown didn’t stop there. Illegal refineries met their end in Ebocha, umuajuloke community, Okrika 7, and Kumkum in Rivers State, as well as Ukwa, Uzuaku, Oza West, Odogwa, Obuzor, Oandu in Abia State and Bizeni in Bayelsa state.
The destruction of these sites serve as a Stern warning – no haven exists for crude oil theft in Nigeria. “The week’s incidents spanned key corridors – 39 in the central Corridor, 41 in the Eastern Corridor, four in the western Corridor, and 10 in deep blue water.”
“This was achieved by the joint efforts of NNPCL command and control Centres, Shell Petroleum Development Company, Pipeline Infrastructure Nigeria Limited, Maton Engineering Nigeria Limited, Oando PLC, New Guard Security and Consultancy Limited, and government security agencies.”
Last Line:
The Group Chief Executive Officer of the Nigerian National Petroleum Company, Mele Kyari, said the increased crude oil production was as a result of improved security measures and the support of joint venture partners.
“We have reached a new peak in production that we haven’t seen in the last three years. This is related to the sustained efforts by the armed forces and other security agencies to protect our critical assets,” Kyari said in Nigeria’s capital, Abuja.
