Petroleum Minister, Ibe Kachikwu, has said Nigeria’s oil production will reach an all-time record of 2.1 million barrels per day in January, 2017.
He revealed this in an interview in Abu Dhabi on Thursday.
Speaking on the oil production of Nigeria, he said the country has moved from production low of 1.4 million barrels per day early this year to about 1.6 million barrels per day currently.
He expects the country’s output to touch 2.1 million barrels per day in January. “You are not likely to see additional soft impact of our production on the market. The market should be stable,” he said.
According to the Minister, the price of oil is expected to be about $60 per barrel in a year’s time.
“I am hoping that we are heading towards $60 per barrel and I don’t see higher than that,” said Emmanuel Ibe Kachikwu when asked about the expected oil price, one year down the line in December next year. He said the price range of $60 per barrel would be beneficial for both consumers and oil producers.
Kachikwu had earlier said that the country will maintain oil output of 1.9 million barrels per day throughout 2016.
In October, The Federal Government said it expected its oil production rate to jump by 22% by the year’s end to 2.2 million bpd.
However, Kachikwu said the target was for 1.9milllion b/d at the moment.
Apart from the impact of low oil prices, whose sales account for 70% of the Nigerian government’s revenue, the country’s energy facilities have been crippled by attacks by militants calling for a greater share of the country’s oil wealth.
The world had expected Nigeria to ramp up production and increase its crude export after OPEC exempted the country from joining the cut deal due to attacks on its oil and gas pipelines by militants which had slowed down its production.
OPEC agreed to reduce output by 1.2 million barrels a day. The cut will take effect from January 2017.
As a result of the cut which would boost oil prices, Nigeria is one of the countries expected to benefit from the deal.
Oil prices slipped on Wednesday on doubts that promised production cuts by OPEC and Russia would be deep enough to end a supply overhang that has weighed on the markets for more than two years.
North Sea Brent crude LCOc1 was down 30 cents a barrel at $53.63 by 0840 GMT.
However, Kachikwu has said oil price must stable at between $54 per barrel and $55 p/b before Nigeria can benefit from the cut.
With the absence of attacks on the country’s oil and gas pipelines, Nigeria produces between 2.2 million barrels per day, highest 2.8 million b/d.
1.9 million b/d is a huge shortfall- an internal cut which analysts have said would likely stand against the country’s struggle to revamp its already comatose economy.
As a result of recession, Nigeria’s economy plunged deeper, losing a total of $200 billion worth of investment in the oil and gas sector in 2016.
OPEC recently exempted Nigeria from its plan to cut oil output for the
first time in eight years- according to analysts, this points out how
far the country which used to be Africa’s biggest producer has fallen.
Recall that from January to October this year, just over three wells a month were drilled in Nigeria, down from a monthly average of almost 22 in 2006, according to Petroleum Ministry data.


Please enter your comment!
Please enter your name here