Growing international demand for Nigerian crude oil is putting pressure on the country’s current production levels, as the Federal Government says it is receiving requests from buyers across the world despite limited supply.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this on Wednesday during the Nigeria Oil and Gas Energy Week in Abuja, saying countries in the United States, Europe and the Middle East are increasingly seeking Nigerian crude.
According to the minister, Nigeria’s improving oil production has renewed confidence among foreign governments and investors, but current output is still not enough to meet rising demand.
Lokpobiri said the Federal Government is implementing programmes aimed at raising crude production over the next few years to meet both local and international obligations.
He noted that Nigeria’s crude oil production, including condensate, has risen to over 1.8 million barrels per day from about one million barrels per day in 2023 when the current administration took office.
Despite the increase, he said the country still has room for growth, recalling that Nigeria had previously produced as much as 2.5 million barrels per day.
The minister attributed the production recovery to increased investment in the upstream sector, revealing that the number of active drilling rigs has grown from about 14 in 2023 to more than 60.
Lokpobiri also said President Bola Tinubu’s approval of onshore asset divestments by international oil companies has strengthened indigenous participation in the industry.
He explained that Nigerian firms, including Renaissance Africa Energy, Seplat Energy and Oando, now account for more than 60 per cent of the country’s daily crude production after acquiring assets previously owned by international oil companies.
According to him, the divestments have allowed the multinational firms to focus on deepwater operations while creating opportunities for indigenous operators to expand production.
The minister further disclosed that Renaissance recently made an offshore oil discovery in Oil Mining Lease 74, describing the development as a sign that sustained exploration activities will help Nigeria increase its oil reserves and boost future production.
