FG to Increase Oil Production by 1 Million Barrels Per Day Within 5 Years
The Federal Government of Nigeria has unveiled an ambitious initiative to ramp up crude oil production by one million barrels per day within the next 12 to 24 months. This strategic plan, named “Project 1MMBPD,” seeks to address pressing issues in the oil sector, including rampant oil theft, pipeline vandalism, outdated infrastructure, and the urgent need to attract new investments.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently reported a decline in oil production, dropping from 1.571 million barrels per day in August to 1.544 million in September—a 1.68% decrease. Yet, with the launch of this initiative, officials are optimistic about reversing this trend and boosting output through a series of targeted interventions.
At the project’s launch, held to commemorate NUPRC’s three-year anniversary, President Bola Ahmed Tinubu, represented by Secretary to the Government of the Federation, Senator George Akume, highlighted the importance of increasing oil production for national revenue and economic growth. “Project 1MMBPD is a giant step forward for our oil and gas industry, designed for sustainable growth,” Akume stated. He emphasized that enhancing domestic energy security and economic vibrancy is essential for Nigeria’s continued prominence in the global energy landscape.
However, Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, expressed that the current target may fall short. He urged stakeholders to aim even higher, stating,
“For a country that once produced over two million barrels per day, the present additional one million target is unacceptable. We should be aiming for 2.5 million in the short term and four million barrels per day in the long term.”
In addition to the production targets, Engr. Gbenga Komolafe, Chief Executive of the NUPRC, announced a controversial decision to block Shell’s $2.4 billion divestment of its onshore and shallow water assets to a local consortium, Renaissance. However, four other divestment deals were approved, including ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy, among others.
“Out of five divestment applications received, four passed the regulatory test and secured ministerial consent,” Komolafe confirmed, detailing other approvals involving Equinor Nigeria Energy, Nigerian Agip Oil Company, and TotalEnergies.
Despite the optimism, NNPC Limited’s Group CEO, Mallam Mele Kyari, cautioned that aging infrastructure and pipeline vandalism pose significant barriers to increasing production.
“We are dealing with infrastructures that are over 50 years old. Without replacements, we cannot evacuate the additional one million barrels, especially from onshore assets,” he remarked.
Tony Elumelu, Chairman of UBA Group, echoed these concerns, highlighting the urgent need for modernization. He pointed out that Nigeria’s oil production has fallen from over two million barrels per day to below 1.5 million, largely due to outdated infrastructure, regulatory uncertainties, and security challenges in the Niger Delta.
“As a nation, we cannot allow this decline to continue. We must modernize our oil and gas infrastructure to safeguard our economy and ensure prosperity for future generations,” he urged.
