Nigeria is actively increasing its crude oil production in response to major global supply disruptions caused by the ongoing war in Iran, with authorities now aiming to raise output by 100,000 barrels per day (bpd) in the immediate term to capture widening supply gaps.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows Nigeria’s total liquid volume output at 1.66 million bpd, buoyed by high-performing offshore assets including Bonga, Erha and Egina. Whereas intermittent output spikes have hit ~1.8 million bpd, structural issues continue to create a gap between current capabilities and the ambitious 2-plus million bpd roadmap.
State-owned Nigerian National Petroleum Company (NNPC) Limited is scaling up allocations to major domestic assets, increasing supply to massive regional facilities like the Dangote Refinery to fulfill shifting global market demands.
Nigerian upstream operators are also capitalizing on record-high crude revenues to aggressively expand short-cycle exploration and extraction infrastructure. This massive reinvestment wave supports the federal government’s strategic target to significantly elevate national oil and condensate production over the next four years. Local energy majors are also directly injecting war-driven revenue surges into near-term drilling programs. To wit, Nigerian energy giant Oando is rolling out a seven-well drilling campaign aiming to add 10,000 barrels per day (bpd) by the end of the year.
Beyond localized windfalls, Nigeria’s energy firms are looking to raise capital through structured debt and equity to lock in long-term expansion projects. Oando is looking to raise up to $750 million to execute a 100-well onshore drilling campaign, aiming to triple its oil and gas output from 32,000 barrels of oil equivalent per day (boe/d) to nearly 100,000 boe/d.
According to CEO Wale Tinubu, global supply shocks have created highly favorable conditions for securing financing and expanding operations to meet supply gaps. Independent energy firm Heirs Energies has also secured a large facility from the African Export-Import Bank (Afreximbank) to refinance debt and accelerate field developments.
By Alex Kimani for Oilprice.com
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