Gabriel Tanimu Aduda, Nigeria’s Permanent Secretary at the Ministry of Petroleum Resources has said that by November 2023, Nigeria would be producing up to 1.7 million barrels per day of crude oil.
He said this during a July 6 interview with Energy Intelligence Group on the sidelines of the just concluded OPEC International Seminar in Vienna Austria. According to Aduda, Nigeria is doing all it can to cap and max out on crude oil production, he said that Nigeria is currently capping about 1.2 million barrels per day and that is because of the challenges the country is facing.
He highlighted the security challenges in the Niger Delta region, where crude oil theft and sabotage are still being tackled by the government. He however pointed out the fact that the government is working towards ramping up production.
Higher quota
While addressing the recently assigned quota to the country by the Organization of Petroleum Exporting Countries (OPEC), Aduda said that he knows Nigeria will get a higher quota because the country is working deliberately to achieve that goal. Recall that during a June 4 OPEC meeting, Nigeria agreed to a production quota cap of 1.38 million barrels per day between January to December 2024.
At that meeting, OPEC and Non-OPEC members decided to cut production volumes in order to ensure global oil market stability.
Aduda further mentioned that the current oil prices are favourable for Nigeria’s oil sector, allowing it to perform well. However, he also expressed confidence that even if the prices were to increase beyond the current rate of $76.71 per barrel (as of Friday, July 7, 9:30 GMT+1), the country’s oil sector would continue to thrive.
He emphasized that Nigeria’s oil sector is currently benefiting from the existing oil prices and at the same time, resilient enough to withstand potential increases in oil prices.
Energy security
Aduda said Nigeria has a lot to gain from the consensus that natural gas is a transition fuel in the global energy transition. He reasoned that the country’s advantage of having vast natural gas reserves will enable it to transition smoothly.
Note that Nigeria currently has 260 trillion cubic feet (tcf) of natural gas with a potential for 600 tcf. Aduda however stated that the country’s natural gas resource also needs expanded infrastructure, production and accessibility of both compressed natural gas (CNG) and liquefied petroleum gas (LPG), especially on the domestic front.
What you should know
During a panel discussion on energy security during the OPEC seminar in Vienna, Austria, Aduda told attendees that the security challenges in Nigeria’s oil and gas sector have not entirely stopped investors from investing in the sector. According to him, the oil and gas investments will help the country in its energy transition agenda because there is also a need to invest in critical minerals which are needed for developing renewable energies.