Nigeria’s Chief of Naval Staff, Emmanuel Ikechukwu Ogalla, stated that crude oil production has risen to between 1.6 million and 1.7 million barrels per day due to improved security measures designed to curb crude oil theft.
Ogalla said this in a statement on Tuesday while commenting on the progress of the crackdown on oil theft across the country.
The Navy Chief also mentioned that the armed forces have successfully closed off routes used for the sale of illegally refined petroleum products.
“We have stepped up surveillance and enforcement in the oil-producing areas.
“Right now, as we speak, the Nigerian Navy has 12 vessels on the sea to protect oil production and stem oil theft. We have arrested over 16 vessels, so far,” Ogalla said.
War on crude oil theft
In June, the GCEO of the Nigeria National Petroleum Corporation (NNPC) Limited, Mele Kyari, said the oil firm has declared a war on crude oil theft in the country.
Oil theft, a major hurdle stifling the growth and investment opportunities in the sector, has made it difficult for the country to meet its OPEC quota.
Currently, Nigeria produces about 1.3 million crude oil as of the last data released by OPEC.
This low output of crude oil production means the country earns less on revenue and foreign exchange.
Accordingly, Kyari said Nigeria can produce two million barrels of crude oil per day without deploying new rigs, but the major impediment is the industry’s inability to act promptly.
He added that the “war” will help NNPC Ltd. And its partners swiftly remove all identified obstacles to effective and efficient production, such as delays in procurement processes, which have become a significant challenge in the industry.
“We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation,” he said.
What you should know
In 2024, Nigeria has struggled to meet its oil production targets in the first five months of the year.
The country aimed to produce 1.78 million barrels of crude oil per day, but the Organization of Petroleum Exporting Countries and its allies (OPEC+) set a lower production quota of 1.5 million barrels per day in December, which was 288,000 barrels below the budget target.
In January, OPEC figures revealed that Nigeria’s average crude oil production was 1.42 million barrels per day, falling short of both the OPEC quota and the budget target.
This figure dropped to 1.32 million barrels per day in February and further declined to 1.23 million barrels per day, according to direct communication figures from OPEC.
Throughout the first quarter of the year, Nigeria, much like in 2023, failed to meet the OPEC+ production quota and the 2024 budget production target. The average production barely reached 1.4 million barrels per day.