NIGERIA AIMS TO INCREASE DAILY OIL PRODUCTION TO 2.7 MILLION BARRELS BY 2027

Nigeria, Africa's top oil producer, has set a target of increasing daily output by about three-fifths to 2.7 million barrels of crude oil and condensate by 2027, a presidential adviser has said.

The planned growth will be fueled in part not only by crude oil but also by oil condensate, a lighter and more unstable hydrocarbon, so that Nigeria can largely stay within its OPEC+ quota of 1.5 barrels per day, according to Olu Verheijen, special adviser to President Bola Tinubu on energy. .5 million barrels of crude oil. The main reason for the production increase is to improve safety at oil production and transportation sites, he added.

“The OPEC quota does not include condensate. The goal we have is a combination of condensate and crude oil,” he said in an interview at an energy conference in Dar es Salaam, Tanzania, last week. “The idea is to try to demonstrate the potential to increase the quota .” “As needed.”

Nigeria’s production increase from 1.1 million barrels per day in 2022 comes as the country seeks to raise revenue to address a range of economic problems, from widespread poverty to crumbling infrastructure. In December, the country produced 1.67 million barrels, including 1.48 million barrels of crude oil.

Verheyen said the West African country also aims to become a net exporter of petroleum products, as the refinery owned by billionaire Aliko Dangote ramps up production.

“It’s an ambitious step,” he said. “But we have to work hard to get there.”

Removing fuel subsidies could also encourage more investment in refineries, he said.

“This has meant that for the first time in decades, the majority of the sector has become commercially viable,” he said. “Investing in refineries now makes sense, whereas before it didn’t make sense.”