Why crude production fell in Q1 – Minister

“The reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some Oil companies operating in Nigeria,” Mr Lokpobiri said.

The Nigerian government has attributed the crude oil production shortfall recorded in the first quarter of the year to issues encountered on the Trans Niger Pipeline.

The government said the issue was also worsened by maintenance activities carried out by some oil companies operating in the country.

Nneamaka Okafor, the special adviser on media and communication to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this known in a statement on Friday.

Over the years, crude theft, pipeline vandalism and its negative impact on the country’s economy have been a source of concern for the Nigerian government.

In February, the Organisation of Petroleum Exporting Countries (OPEC) said Nigeria’s crude oil production dropped to 1.149 million barrels per day in January, from 1.422 million bpd recorded in December 2023.

Last month, according to the oil cartel’s direct communication data, Nigeria’s crude oil production dropped to 1.322 million barrels per day in February from 1.427 million recorded in January.

Mr Lokpobiri on Friday said the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline coupled with maintenance activities carried out by some oil companies in the country.

“In response to recent concerns regarding a shortfall in oil production in Nigeria during the first quarter of 2024, The Honourable Minister of State for Petroleum Resource (Oil), Heineken Lokpobiri, assures that measures are being taken to address the situation to, not only restore production to previous levels but to also increase it.

“The minister clarifies that the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in Nigeria,” the statement said.

Mr Lokpobiri assured that the issues have been adequately addressed, and production is expected to return to its previous levels in the coming days.

He anticipates that Nigeria’s oil production, including condensate, which was approximately 1.7 million barrels per day (bpd) before these developments, will soon be restored.

Furthermore, the statement said the Ministry of Petroleum Resources is actively engaged in policy evolution aimed at maximising the utilisation of all available wells in Nigeria.

“This strategic approach will enable the country to ramp up production, thereby generating vital revenue to stabilise the nation’s foreign exchange reserves. The increased revenue will also empower the government to fulfil its commitments in providing essential infrastructure, as outlined in the 2024 budget,” it said.

Mr Lokpobiri further assured Nigerians of hope as the nation navigates these challenges while urging all to remain committed to ensuring the sustainability and growth of Nigeria’s oil sector, which plays a crucial role in driving the nation’s economy.