Call for State of Emergency
The Independent Petroleum Producers Group (IPPG) has called on President Bola Tinubu to declare a state of emergency on crude oil production and supply. This plea comes amid rising concerns over the insufficient domestic crude supply to the Dangote Petroleum Refinery and other indigenous refiners.
Impact on Budget
The IPPG expressed fears that the 2024 budget might face partial implementation due to the current low crude production levels. This warning follows the Nigerian National Petroleum Company Limited’s (NNPC) announcement of a renewed effort to tackle oil production challenges.
Minister’s Challenge
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, urged oil producers to increase investments in upstream activities. He emphasized that boosting oil output is crucial for meeting domestic refinery demands and sustaining export commitments.
Declining Production
Nigeria’s oil production has steadily declined, dropping from over 1.4 million barrels per day in January to about 1.2 million barrels per day in April. Oil producers believe that Nigeria should target 2 million barrels per day to satisfy local and international needs.
Industry Concerns
At the Nigeria Oil and Gas conference in Abuja, IPPG Chairman Abdulrazaq Isa highlighted the industry’s urgent need for increased focus and collaboration. He called for swift measures, including concluding pending IOC divestment transactions and addressing deepwater development issues.
NNPC’s Response
NNPC’s Group Chief Executive Officer, Mele Kyari, declared a state of emergency on production. He outlined plans to replace outdated pipelines, implement rig-sharing programs, and reduce procurement delays to boost Nigeria’s crude output.
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