Nigeria's Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has called on the Nigerian National Petroleum Company Limited (NNPC Ltd.) to provide explanations to Nigerians regarding the country's refineries. In an interview on Channels Television's Politics Today, Lokpobiri emphasized the need for transparency, stating that Nigerians deserve to know the actual state of the refineries. This call for clarity comes amid criticism that the public was misled about the refineries' performance.
Lokpobiri's comments were made in response to concerns that claims of the refineries operating at full capacity were later disputed by questions about their output. The minister stressed the importance of establishing facts before drawing conclusions, saying, "it is better for us to have the full facts about these refineries so that we don’t make any hasty conclusions." He promised to request NNPC to appear and provide explanations, ensuring that the public is well-informed.
The minister also discussed Nigeria's oil production, revealing that the country's output had increased. According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria's production averages about 1.84 million barrels per day, including condensates. Lokpobiri expressed the government's goal to raise production beyond 2 million barrels per day but noted that ageing infrastructure remains a significant challenge.
Lokpobiri attributed the limitation in production to the state of Nigeria's infrastructure, explaining that many pipelines are over 50 years old. This ageing infrastructure hinders the evacuation of additional crude even when production increases. However, he mentioned that NNPC has initiated a comprehensive pipeline overhaul, which is expected to gradually improve evacuation capacity.
The minister also highlighted efforts to increase production through re-entry programmes for previously shut-in oil wells. Following recent asset transfers, operators such as Renaissance Africa Energy and Seplat are bringing these wells back into production. These efforts are contributing to the gradual increase in Nigeria's crude oil production.
Lokpobiri's push for transparency and improved infrastructure reflects the government's broader efforts to optimize Nigeria's oil sector. The minister's comments underscore the importance of accurate information and effective infrastructure in achieving the country's oil production goals.
Ultimately, Lokpobiri's call for NNPC to address Nigerians on refinery performance highlights the need for clear communication and transparency in the country's oil sector. As the government works to increase production and improve infrastructure, providing accurate information to the public remains crucial.
Key points
- - The Nigerian government aims to increase oil production beyond 2 million barrels per day. - Ageing infrastructure is a major obstacle to increasing oil production in Nigeria. - NNPC has begun a comprehensive pipeline overhaul to improve evacuation capacity.
