The Minister of State Petroleum
Resources (Oil), Sen. Heineken Lokpobiri, has assured that Nigeria will meet
and surpass the 2024 crude oil production budget benchmark of 1.7 million
barrels per day (bpd).
He gave the assurance at a
stakeholder’s interactive session on Creating Value and Enabling Investments in
Nigeria’s Oil and Gas Sector organised by Chevron Nigeria Plc.
Lokpobiri, in a statement said
the country had the capacity 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 said the Federal
Government would sustain stakeholders’ engagement.
“The success of the upstream
sector will determine the success of the midstream and the downstream.
“And 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,” he said.
The Minister outlined the
trajectory of sector growth 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, highlighting the government’s commitment to
creating an enabling environment for stakeholders to thrive.
“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,” Lokpobiri
said.
He reassured stakeholders of the
government’s diligent effort to address challenges facing the sector and
provide the best playing field for both International Oil Companies (IOCs) and
independents to make the necessary investments.
“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,”
he added.
The minister also 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.
The Minister, however, urged
stakeholders to join hands in building a robust oil and gas sector that would
contribute significantly to the economic growth and development of Nigeria.
Recall that the Federal
Government, in the Appropriation Bill, gave an average crude oil production
benchmark of 1.78 mb/d, and a crude oil price benchmark of $77.96.
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