NNPC Raises Oil Production

Hamisu Muhammad

9 June 2011

The Nigerian National Petroleum Corporation, (NNPC) says it’s now producing 90,000 barrels of crude oil per day up from 60,000 barrels early this year.

The company also said at the same time it produces 50 million standard cubic feet (mscf) per day of natural gas sales.

This signifies an increase of about 30,000 barrels per day of crude oil.

The production is through the NNPC’s subsidiary in the upstream sector of the oil and gas industry, the Nigerian Petroleum Development Company, (NPDC).

According to the company, the new milestone combined capacity is put at 102,000 barrels of oil equivalent per day 90,000 barrels of oil per day plus 50 bmscf of natural gas

A statement by the Group General Manager, Group Public Affairs Division of the Corporation, Dr. Levi Ajuonuma, the NNPC said this milestone was achieved based on the Federal Government’s support of NNPC/ NPDC transformation and growth strategy towards repositioning the Company within the next five years.

“This new aspiration is designed to increase both NPDC reserves and production base to over 1.5billion barrels and 250,000 barrels of oil equivalent per day by 2015 respectively”.

Dr. Ajuonuma stated that the strategic growth aspiration is bolstered by the expansion of NPDC operations via the assignment of equity interests especially in the IOC (SPDC/TOTA/NAOC) divesting blocks.

Under the arrangement the IOCs divested 45 per cent equity in OMLs 4, 38 and 41 to SEPLAT and NNPC subsequently assigned 55 per cent to its subsidiary NPDC to manage these assets.

The NNPC spokesman stated that the assignment of these three blocks resulted to current increase in reserve base of over 200 million barrels of oil and production uplift of 28,000 barrels of oil equivalent per day (20,000 bbls/day of oil and 50 million standard cubic feet gas sales per day).

Saudi Arabia faced resistance on Wednesday from OPEC producers opposed to an increase in oil supplies that may help ease crude prices.

Under pressure from consumer countries to contain fuel inflation, Riyadh hopes to convince the OPEC to lift its production target by 1.5 million barrels a day at the meeting today, Gulf delegates said.

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