Nigeria’s crude oil production has reached a significant milestone, with an output of 1.56 million barrels per day (bpd) as of Friday, June 2, 2023, according to the Nigerian National Petroleum Company (NNPC) Limited. Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPC, shared this information during an interview with Reuters over the weekend.
Kyari highlighted the potential for further growth in Nigeria’s production capacity. He stated that the current output of 1.56 million bpd is expected to increase in the coming days.
However, it is important to acknowledge the challenges Nigeria has faced in meeting its OPEC quota of 1.742 million bpd due to illegal refining and oil theft. In April 2023, the nation’s oil production fell below one million barrels per day, dropping to 998,602 bpd. This represents a significant decline of 21.26% compared to March’s output of 1,268,202 bpd, marking the lowest production volume in the past seven months.
Kyari further disclosed that NNPC Limited has initiated the termination of crude oil swap contracts and will now pay for petrol imports in cash. Private companies are also expected to begin importing petrol from June onwards. By terminating the crude swap contracts, NNPC will reduce its petrol imports, allowing private companies to handle the majority of the imports. This strategic shift enables NNPC to make cash payments for its purchases.
Kyari emphasized that this marks the first time NNPC has announced the termination of crude swap contracts. By importing less petrol and relying on private companies for bulk imports, NNPC can improve its ability to make cash payments for purchases.
These developments reflect the commitment of the NNPC to streamline operations, enhance transparency, and optimize Nigeria’s crude oil industry for the benefit of the people. The focus on cash transactions and the involvement of private companies in petrol imports contribute to a more equitable and efficient oil sector.
