Nigeria is setting ambitious targets to boost its oil production to 2.6 million barrels per day (bpd) by 2026. This would be a significant increase from current levels, which hover around 1.6 million bpd. The goal, outlined by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), is seen as crucial to addressing the country’s longstanding issues of oil theft, pipeline vandalism, and a decline in investments in the oil and gas sector.
The Nigerian government has secured commitments from major oil companies, including Shell, TotalEnergies, and ExxonMobil, who are expected to inject $13.5 billion into the sector. The NUPRC also plans to focus on improving security in oil-producing regions and implementing more efficient alternative crude oil evacuation routes to mitigate theft and vandalism.
While the country is focused on raising production levels, there are challenges ahead. For over three years, Nigeria has been unable to meet its OPEC quotas, and its production in late 2023 stood at 1.25 million bpd. Despite these hurdles, Nigeria is looking to reform its oil sector, streamline operations, and make the country more attractive to investors.
