Nigeria Should Double Oil Production: Edward During

July 29, 2024

(3 Minutes Read)

Currently, production is only 1.3 million barrels per day, though it can produce up to 4 million barrels a day. With the significant increase in refining capacity, thanks to refineries like Dangote, there is a greater demand for crude oil to keep these refineries operational.

Nigeria is looking to boost its oil production in the coming years to generate more value for its economy, which is still very much reliant on oil exports, said Edward During, the chief financial Officer, of Lekoil Nigeria Limited, in a recent interview given to a media house.

He further added that part of the reason for importing crude oil is that production levels not being as high as they should be. Currently, production is only 1.3 million barrels per day, though it can produce up to 4 million barrels a day. With the significant increase in refining capacity, thanks to refineries like Dangote, there is a greater demand for crude oil to keep these refineries operational.

Not everyone sells to Dangote or other Nigerian refineries; some choose to sell abroad, as it’s an open market, Edward During said. Consequently, refineries may need to import crude to meet their needs. However, if the country doubles the national production, it could reduce or eliminate the need to import crude to run our refineries.

On Africa’s Energy Bank, Edward During said that the government policies and regulations are linked to the challenges faced by the industry. The industry is highly regulated with significant red tape, and previously, issuing a contract could take years, although things are improving now. There is a need for actual reductions in processing times. With proper investment and a clear regulatory path, those things could be achieved, he added.

Nigeria still has substantial resources, and achieving the target of producing four million barrels a day is feasible, despite currently producing about 1.3 million barrels per day, Edward During emphasized.