Tinubu Reforms Raise Oil Output by 80% — Lokpobiri

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said reforms introduced by President Bola Tinubu’s administration have increased Nigeria’s crude oil production by more than 80 per cent.

Lokpobiri made the statement in Yenagoa, Bayelsa State, during a breakfast meeting with media representatives focused on the gains recorded in the oil sector under the current administration.

The minister said Nigeria was producing less than one million barrels of crude oil and condensate per day when the Tinubu administration assumed office in 2023.

He said production had since increased to 1.824 million barrels per day, including condensate, based on the latest weekly report of the Nigerian Upstream Petroleum Regulatory Commission.

“Condensate is not counted by OPEC. As of the last weekly report from NUPRC, we are producing 1,824,000 barrels per day inclusive of condensate. That is over 80 per cent from where we started in 2023,” Lokpobiri said.

The minister attributed the increase to reforms, renewed investment and greater activity across the upstream oil sector.

He said the number of active drilling rigs had also increased significantly, rising from fewer than 10 when the administration took office to more than 70.

Lokpobiri said the government’s approval of major divestments involving international oil companies had also helped unlock investment in new and existing oil assets.

He cited the approvals involving Shell and Renaissance, as well as ExxonMobil and Seplat, saying the transactions had helped facilitate investments in projects including Bonga North, Bonga South-West and Zabazaba.

The minister further said indigenous oil companies now account for about 60 per cent of Nigeria’s crude oil production, compared with the dominance of international oil companies in previous years.

He also defended the removal of the petrol subsidy, describing the policy as necessary to reduce the financial burden on government and increase revenues available for distribution to the three tiers of government.

Lokpobiri said the reforms were designed to improve investment, increase production and strengthen the long-term sustainability of Nigeria’s petroleum industry.

He added that the government would continue working with operators and other stakeholders to further increase production and attract more investment into the sector.