Nigeria Aims at 1.8M bpd January
Nigeria’s oil output may have started looking upwards as the country is aiming to raise its oil production to 1.8 million barrels per day (bpd) in January, just three months away.
Currently, oil production output in Nigeria is between 1.6 million to 1.7 million bpd.
But Nigeria said it would not breach the ceiling of 1.8m set agreed with the Organisation of the Petroleum Exporting Countries (OPEC).
“If we get to 1.8 million, then we need to say: ‘hey, close off the taps,’ because we need to comply,” Nigeria’s Minister of States for Petroleum Resources, Dr. Ibe Kachikwu said.
This is coming the United States’ Secretary of Energy, Rick Perry, said his country has interest in investing in the country’s oil and gas sector.
Meanwhile, Kachikwu has said about 26 firms have indicated interest to participate in the overhauling of Nigeria’s four refineries, which will require investment of about $2billion (N720billion).
The Nigerian National Petroleum Corporation (NNPC), has four refineries, two in Port Harcourt Refining Company Limited (PHRC 1&2), and one each in Kaduna Refining & Petrochemical Company (KRPC), and Warri Refining and Petrochemicals Company Limited (WRPC). The refineries have a combined installed capacity of 445,000 barrels per day (bpd).
Kachukwu spoke with reporters at the just-concluded Africa Oil Week in Cape Town. He said “Nigeria is almost at the threshold of finalising the process, adding that selection may be announced by January or February next year, in efforts by Africa’s biggest economy to reduce its reliance on imports”.
He noted that oil prices were increasing and assured that the Dangote’s 650,000 bpd refinery is due to come on stream by the end of 2019.
“That should be enough to meet local needs. The market is balancing fast. But do we need to see more cuts? We’ll see,” he said.