Continental Focus, International Reach

Buhari Targets 3 Million BPD

Thursday, December 8, 2016

Nigeria has always had high ambitions for its production capacity and has been able to hold on to its title of Africa’s largest producer for decades; with very few noticeable exceptions when its closest competition, Angola, was able to take over the top spot here and there. The country’s president, Muhammadu Buhari, has recently tagged a new target, three million barrels per day (bpd).

The president’s target seems quite farfetched at this time given that the outages in the Niger Delta due to militant attacks have contributed to its falling from the top production spot for more than a few months running.

According to OPEC’s October Monthly Oil Market Report, Nigeria is producing only at a rate of only 1.385 million bpd in September and once the numbers for October and November are in they are not expected to be much higher. Since the country is currently producing at a rate more than 500,000 bpd less than the 2.1 million bpd quota it currently has, it will certainly be quite a feat for Nigeria to reach 3 million bpd.

Buhari believes his plans to appease militants and stimulate the economy will help boost crude production to the 3 million bpd level. Buhari’s government recently unveiled a $10 billion infrastructure rebirth program as well as initiated a review of the 13% allocation of funds to oil producing states.

Buhari has been holding talks with leaders on the need for the militants to give peace a chance and recently presented his “7 Big Wins” to stakeholders at the Presidential Villa in Abuja.

The 7 Big Wins has been designed to develop a stable and enabling oil and gas landscape with improved transparency, efficiency, stable investment climate and a well-protected environment.
The seven pillars of the proposed solution to Niger Delta’s security are: policy & regulation; business environment & investment drive; transparency & efficiency; stakeholder management & international coordination; gas revolution & refineries and local production capacity. The president just has to get the various militant groups on board to make his plan work.

The president seems earnest in his goals, but his plan is almost as cumbersome as the long awaited for Petroleum Investment Bill, or PIB with its many new variables.

One industry insider told Petroleum Africa that the various plans that Nigeria has come up with over the years to deal with its oil sector and the militants have been “needlessly burdensome” for everyone involved. “Streamlined and clear cut are indeed foreign terms to the government. What is needed is clear cut and simple legislation, or programs that all stakeholders can understand; companies, communities and even the militants,” the source who asked not to be named said.


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