Good news for naira as NNPC reports increase in oil production

The Nigerian National Petroleum Company Limited (NNPCL) has announced an increase in Nigeria's oil production.

According to Mele Kyari, the NNPCL's Group Chief Executive Officer, Nigeria now produces 1.7 million barrels per day.

This represents a significant increase compared to the 1.28 million barrels per day reported in April.

During a stakeholder engagement between the Nigerian Association of Petroleum Explorationists and the NNPCL, Kyari blamed the low production output over the years on oil theft and vandalism.

Punch reports that the NNPCL boss emphasised the need to fight insecurity in the oil and gas sector to increase production.

His words: "How do you increase oil production? Remove the security challenges in our onshore assets.

"The security challenge is a significant issue, encompassing more than just theft; it also involves ensuring the infrastructure can support the required volume for the market.

"No one will invest in oil production if there is uncertainty about the product reaching the market. In the past two years alone, we have eliminated over 5,800 illegal connections from our pipelines.

"We took down over 600 illegal refineries—cooking pots or whatever they were. You simply cannot get people to put money in until you solve that problem."

Nigeria discovers another oil well

Legit.ng previously reported that the Nigerian National Petroleum Company Exploration and Production Limited (NNPC E&P Ltd), a subsidiary of NNPC and Natural Limited Oilfield Services Limited (NOSL), has announced the successful commencement of oil production at Oil Mining Lease (OML) 13 in Akwa Ibom state.

The NNPC announced this in a statement signed by its chief corporate communications officer, Olufemi Soneye, on Sunday, May 12, 2024.

It said the production, which began on May 6, 2024, with about 6,000 barrels of oil, is expected to be ramped up to 40,000 barrels daily by May 27, 2024.