The federal government has opened discussion with the Organisation of Petroleum Exporting Countries (OPEC), seeking an increase in its oil production quota to about 2.2 million barrels per day.
Minister of state for petroleum resources, Timipre Sylva, who is heading the talks said, “What we’re getting right now is 1.74 million barrels per day (bpd), we think we can do about 2.2 (million bpd),” as he spoke to the media on the side-lines of the Gastech conference in Dubai yesterday.
He added that Nigeria can achieve that production level in six months.
Nigeria is currently producing below its 1.74 million bpd quota due to technical challenges, Sylva said, but expects to hit that output target in the next month or two.
Sylva said that he didn’t expect the OPEC+, to take any extraordinary measures when they meet next month.
He said that current oil prices were a very “comfortable level” adding that $70 a barrel was an optimal figure.
Brent prices were up 81 cents a barrel at $74.73 a barrel yesterday Sylva said that he expects peak oil demand to come in 2030.
Meanwhile, multinational oil and gas companies in Nigeria are considering reviving abandoned oil fields which they have either earlier thought of divesting due to absence of fiscal policies and uncertainties in the industry.
Sources close to the industry told LEADERSHIP that Joint Venture partners with the Nigerian National Petroleum Corporation (NNPC) are taking new measures to optimise production from mature fields as well as spud oil from near abandoned fields.
Our source said the Petroleum Industry Act (PIA) has put in place incentives that will guarantee transformation of the industry.
“As a matter of fact by six months the PIA transition committee would have come up with a clear implementation process. Although it has been given a one year mandate to provide all necessary guidelines for seamless transition we have fully engaged the committee and Nigerians will see a clearer understanding of the law” she said.
For the NNPC, the source said a number of its assets will be wound down and funds deployed to massive oil production as it’s commercialisation will create opportunities to upscale investments.
LEADERSHIP learnt that asset divestment and lack of investment by oil majors when the PIB was delayed scaled down production as investors awaited the outcome of the Bill.
“Nigeria would begin to witness asset development instead of divestment and ofcourse most NNPC/partners are no longer talking of leaving. You hear recently that TotalEnergies is boosting gas development and would champion energy transition and this is what we will expect others to start contemplating” another source within the industry said.
The source said Nigeria missing its August target was because the country was witnessing a transition period and anticipated outcome of the PIB.