Nigeria’s Oil Production to Increase by 35000bpd

oil rig
  • Nigeria’s Oil Production to Increase by 35000bpd

Following the resolution of the dispute between Shell Petroleum Development Company, Belema Oil and host communities on OML 25 in the Kula Kingdom, Rivers State, the Nigerian National Petroleum Corporation (NNPC) has said the country’s crude oil production will surge by 35,000 barrels per day.

Mr Ndu Ughamadu, Public Affairs, NNPC, disclosed this in a statement issued on Wednesday in Abuja.

According to him, Mele Kyari, the Group Managing Director, put an end to the dispute and promised to reopen production in the field soon.

Kyari, who was also present at the peace parley, said, “the economic implication of the peace agreement was that production within the OML 25 and adjoining assets which had daily production output of over 35,000 barrels would resume and add value to the community, the investors and the country at large.”

He acknowledged the role the new Minister of State for Petroleum Resources, Timipre Sylva, played in ensuring a lasting solution to the dispute.

Nigeria is currently producing about 2.2 million barrels per day, more than the 1.685 million bpd quota agreed in December 2018 with OPEC+ in Austria.

Last week, OPEC+ directed Nigeria and Iraq that is presently pumping about 4.8 million bpd to comply with the cartel quota agreement as global oil demand was projected to drop by at least 60,000 in 2020 and US crude oil production expected to surge in the same year.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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