Market News

LAGOS  – Minister of State for Petroleum Resources (oil) Heineken Lokpobiri, says the drop in crude oil production in the first quarter of 2024 is due to challenges with the Trans-Niger pipeline (TNP) and the maintenance carried out by some oil companies. 

He spoke in a statement signed by Nneamaka Okafor, his special assistant, media and communications, in Abuja. 

The TNP, operated by Shell Petroleum Development Company of Nigeria (SPDC), is a major pipeline capable of transporting about 180,000 barrels of crude per day to the Bonny export terminal. 

Speaking on the decline, Lokpobiri said the federal government was intensifying efforts to restore the production to the previous level of 1.7 million barrels per day and also exceed it. 

He clarifies that the reported “production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some Oil companies operating in Nigeria,” he said. 

Lokpobiri, said production is expected to return to its previous levels in the coming days. 

He said his ministry is actively engaged in policy evolution aimed at maximising the utilisation of all available wells in Nigeria. 

“This strategic approach will enable the country to ramp up production, thereby generating vital revenue to stabilize the nation’s foreign exchange reserves,” he said. 

“The increased revenue will also empower the government to fulfill its commitments in providing essential infrastructure, as outlined in the 2024 budget.” 

Lokpobiri also said his ministry remains committed to ensuring the sustainability and growth of Nigeria’s oil sector, which plays a crucial role in driving the nation’s economy.