The Federal Government has attributed the decline in crude oil production in Nigeria to the disruption of the Trans Niger Pipeline, as well as the maintenance activities carried out by some oil companies.
This was disclosed in a statement by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri in Abuja by his Special Assistant on Media and Communications, Nneamaka Okafor.
The Trans Niger Pipeline is a major oil pipeline in Nigeria that move crude oil from the rigs in Rivers and Bayelsa States to the Bonny Crude Oil Export Terminal, according to The Punch.
However, the federal government stressed that work is ongoing to have the pipeline fixed, to ensure the country can produce 1.7 million barrels per day of crude oil and condensates.
The Trans Niger Pipeline is a very important part of Nigeria’s oil architecture but has encountered a lot of challenges over the years.
Nigeria recorded an output of 1.23 bpd in March compared to 1.32 million bpd in February, according to OPEC data published.
Commenting on this development on Friday, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri said the drop in production was a result of issues encountered on the Trans Niger Pipeline.
The statement read in part, “In response to recent concerns regarding a shortfall in oil production in Nigeria during the first quarter of 2024, the Minister of State for Petroleum Resource (Oil), Senator Heineken Lokpobiri, assures (Nigerians) that measures are being taken to address the situation to, not only restore production to previous levels but to also increase it.
“The minister clarifies that the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in Nigeria.
“The minister is also pleased to announce that the issues have been adequately addressed, and production is expected to return to its previous levels in the coming days.”
According to the April 2024 Monthly Oil Market Report published by OPEC, Nigeria produced 1.231mbpd in March, compared to 1.32 million bpd in February, showing a drop of 91,000 barrels per day.
Lokpobiri said “Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day before these developments, will soon be restored.
“This strategic approach will enable the country to ramp up production, thereby generating vital revenue to stabilise the nation’s foreign exchange reserves.
“The increased revenue will also empower the government to fulfill its commitments to providing essential infrastructure, as outlined in the 2024 budget.”
Oil theft and pipeline vandalism have severely impacted Nigeria’s oil production, causing output to fall below OPEC-approved levels.
