The government of Nigeria aims to produce about a quarter of a million barrels per day over the next two years, media reports said. The decision comes at a time when many global oil companies are scrambling for profits.
One of the company’s official, told the media, “Today, NPDC has the highest number of rigs running in this country. Five rigs are running at the same time adding value and delivering major projects which will ultimately contribute towards the production of the 500,000 per day target.”
The oil production boost will be supported by the country’s national oil company, NNPC. The company’s subsidiary, Nigeria Petroleum Development Corporation will take the initiative for the development with a mission to increase oil production from 260,000 bpd to 500,000 bpd by 2022.
Nigeria and Iraq is considered the worst performers among OPEC nations in terms of production cuts. Due to this, Saudi Arabia is unhappy about the point that the two undertake deeper cuts to compensate for their under compliance. Both Nigeria and Iraq have committed to improve their performance.
It is reported that in July, Nigeria produced 1.37 million barrels daily. The report is produced by OPEC. The production is less by 38,000 bpd from June and below the 1.41 million bpd according to the OPEC+ agreement, which Nigeria signed in May.
Few European and South American oil firms are slowly recovering from the impacts of the Covid-19 pandemic.