Minister of State, Ministry of Petroleum Resources (Oil), Heineken Lokpobiri, has stated that he is working with all stakeholders to increase crude production to get more revenue for the federation.
Lokpobiri, who gave the hint during a brief meeting with energy correspondents in Abuja, noted that already deliberate steps are being taken to ensure that crude oil production moves from its current 1.4 million barrels per day to 2 million barrels per day in December.
According to him, the oil and gas sector has become more competitive, especially with the discovery of oil in more countries in Africa.
He said that International Oil Companies (IOCs) are now looking at other countries for better deals and more return on their investment.
Lokpobiri however, noted that with the passage of the Petroleum Industry Bill (PIB) investors have been reassured of a stable oil and gas business environment.
He said that the government will do everything possible to support every investment in the oil and gas sector and also ensure that Nigeria takes its rightful place as a net exporter of crude and refined products.
The minister said that his main agenda is to ensure an increase in crude oil output which will result in more Forex inflow into the country.
He said, “My sole agenda is to increase crude oil production which is more revenue for Nigeria. Nigeria is dependent on oil and the budget is predicated on oil. For us to solve our problems, we need to earn enough Forex. My ambition is to see how to lead the sector to increase Forex”.
The Minister lamented the low oil output in the country which he attributed to the rising insecurity in the Niger Delta region.
“As of today, we are doing about 1.4 barrels but our target is to see how to hit 2 million barrels per day by the end of the year.
“The reason why we are falling behind is because of the insecurity and we are engaging all the stakeholders and that is why we are increasing production.
“I have engaged the IOCs, the mid-stream, the down-stream, and all stakeholders and we are addressing their challenges to ensure that we increase production capacity.
“I want to assure you that by the end of this year, you will see the difference between when we came in and what we are doing”.
Lokpobiri remarked that the government is aware of the attractive overtures dangled to the IOC by other African countries but assured that the right investment template will be created to ensure that the IOC is comfortable with the business climate in the country.
“The industry is becoming more competitive as more African countries are discovering oil. OICs now have more options but we have assured them that there is no place like Nigeria. With the passage of PIB, the regulatory framework is now stable for investment” he said.
Note that in 2001, Nigeria recorded its highest oil production capacity with its crude oil production averaging around 2,200,000 barrels (350,000 m3) per day but it witnessed a sharp decline to 798 million barrels in 2014 and 776 million barrels in 2015.
