Nigerian oil reserves increase, production increases 26%, as theft declines

The industry regulator announced on Thursday that Nigeria's oil reserves will increase in 2024. Meanwhile, crude oil production will surge 26% from April 2023 to late 2024 due to a decline in theft.

Nigeria, Africa's largest oil producer, depends on this commodity for more than 90 percent of its foreign currency earnings and around two thirds of its revenues. Oil theft on a large scale has reduced government revenues and slowed down production in recent years.

The Nigerian Upstream Petroleum Regulatory Commission reported a 1.45% increase in oil reserves, and a 0.21% rise in natural gas reserves by 2024 compared with 2023.

Nigeria has around 37 billion barrels proven oil reserves, and 209 trillion cubic foot of gas reserves.

NUPRC Chief Gbenga KOMOLAFE said that the active rig count has risen to 38 on average from eight in 2021. This is a 79% rise.

Komolafe stated in a press release that oil thefts and deferments have been reduced by over 40% in the past year, thanks to effective collaboration between security agencies.

Nigeria still struggles to reach its oil production target of 2,062 million barrels per daily (bpd) in 2025. The current output is around 1.7 million barrels per day, resulting in a 360,000-bpd shortfall.

In order to close this gap, the Government has intensified its crackdown on oil thieves as it strives to increase national production this year to 3 million Bpd.

Komolafe stated that the NUPRC would also strive to improve efficiency by encouraging oil companies to collaborate, streamline their operations and achieve the 3,000,000 bpd goal. (Writing and Editing by Mark Potter).

(source: Reuters)