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Minister Reveals Why Oil Production Dropped in Q1 2024

April 13, 2024 • 2 min read

Heineken Lokpobiri, minister of state for Petroleum Resource (Oil), 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.

Lokpobiri spoke in a statement signed by Nneamaka Okafor, his special assistant, Media and Communications, in Abuja on Friday.

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.

On April 11, the Organisation of Petroleum Exporting Countries (OPEC) said Nigeria’s average daily crude oil production dropped to 1.23 million barrels per day (bpd) in March – a 6.88 percent decrease from the 1.32 million bpd recorded in February.

Commenting 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.

The minister clarified 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.”

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

Speaking further, the minister said his ministry was 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, adding “The increased revenue will also empower the government to fulfill its commitments in providing essential infrastructure, as outlined in the 2024 budget.”

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