NIGERIA PLANS TO INCREASE OIL PRODUCTION BY 30 PERCENT BY YEAR-END

Nigeria expects a 30% increase in oil and condensate output as authorities strengthen the security of the country's oil infrastructure and boost investment in the sector, although this growth could outpace OPEC+ commitments to limit output.

According to the Nigerian Petroleum Exploration and Production Regulatory Commission, production will reach 2 million barrels per day by the end of the year, up from 1.54 million barrels in September. "As of today, crude oil plus condensate production is 1.8 million barrels per day and we are working with everyone to increase this to two million barrels per day by December," Enorense Amadasu, executive commissioner of the Abuja-based agency, told a conference in Lagos on Monday.

While the regulator did not disclose the ratio of crude oil to condensate in its forecast, the higher level would bring output closer to or above the 1.5 million barrels per day quota that Nigeria has agreed with OPEC+ not to exceed. A group of 23 countries have imposed production caps to prevent a glut and support oil prices.

But not all members are on board with this plan. The group's leadership is pushing for members such as Iraq, Kazakhstan and Russia to fully implement production cut commitments made earlier this year and make further cuts to offset overproduction.

Africa’s largest oil producer has lagged behind its OPEC+ quota for more than two years due to a lack of investment and widespread theft and vandalism in the oil-rich Niger Delta. President Bola Tinubu’s government is working to attract investors to the sector by offering tax incentives to producers and approving upcoming asset sales.

As part of measures to further boost production, the exploration and production regulator plans to open bidding for 31 oil and gas blocks covering the country's onshore and offshore sectors, Amadasu said, without giving a timeframe. “These blocks have been carefully selected for their potential to increase our reserves and stimulate economic activity,” he said.