The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, is optimistic that Nigeria will not only meet but surpass the 2024 crude oil production budget benchmark of 1.7 million barrels per day (bpd).
Speaking at a stakeholder interactive session themed “Creating Value and Enabling Investments in Nigeria’s Oil and Gas Sector” organized by Chevron Nigeria Plc, Mr. Lokpobiri emphasized the country’s capability to increase crude oil production to 2 million bpd.
Expressing his commitment to fostering collaboration with stakeholders to enhance the country’s oil and gas sector amidst his ambitious target for 2024, the Minister assured sustained engagement with stakeholders. He emphasized, “The success of the upstream sector will determine the success of the midstream and the downstream. As a government, we are willing to sustain that engagement with the stakeholders so that in 2024 and beyond, we will ensure that we produce not just 1.7 million bpd that we need for our budget but ensure that we produce what is needed to meet the local demand.”
Furthermore, Mr. Lokpobiri outlined the sector’s growth trajectory since the current administration took office, starting at about 1 million barrels per day and steadily increasing to 1.4 million barrels per day. He expressed his ambition to continue this upward trajectory, underlining the government’s commitment to creating a conducive environment for stakeholders to thrive.
The Minister emphasized, “As a new government that is business-friendly, with a clear mandate to ramp up production, we are willing to ensure that our fiscal regime is competitive globally. My appeal is that this old marriage, let us manage it, sustain it and improve on it. Whatever your concerns may be, let us put them on the table to disagree to agree.”
Mr. Lokpobiri reassured stakeholders of the government’s diligent effort to address challenges facing the sector and provide a favorable landscape for both International Oil Companies (IOCs) and independents to make necessary investments. He added, “As a country, we have the capacity to produce more than 2 million barrels per day. We have identified the issues bedeviling the sector and are already working on them. I would replicate this programme with all the IOCs and independents so that we can make the sector work for all of us and Nigerians at large, and I know that 2024 will be a much better year.”
In addition, the minister highlighted ongoing efforts to rehabilitate refineries and ensure the functionality of modular refineries to enhance the country’s refining capacity, meet local and regional demands, and thrive internationally.
As Nigeria aims to build a robust oil and gas sector that significantly contributes to the nation’s economic growth and development, Minister Lokpobiri urged stakeholders to join hands to achieve this goal.
It is worth noting that the Federal Government, in the Appropriation Bill, set an average crude oil production benchmark of 1.78 million barrels per day (mb/d) and a crude oil price benchmark of 77.96 dollars.
