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Nigeria’s crude oil production declines due to pipeline issues, government assures restoration efforts

Minister of State for Petroleum Resources Addresses Concerns, Highlights Measures to Address Shortfall

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The Federal Government has attributed the recent drop in Nigeria’s crude oil production to challenges encountered on the Trans Niger Pipeline and maintenance activities conducted by oil companies operating in the country. Despite this setback, efforts are underway to rectify the issues and restore production levels, aiming to reach up to 1.7 million barrels per day of crude oil and condensates.

The Trans Niger Pipeline, a vital component of Nigeria’s oil infrastructure, has faced operational hurdles in recent times, impacting the nation’s oil output. Operated by the Shell Petroleum Development Company Joint Venture, the pipeline plays a significant role in transporting crude oil from oil fields in Rivers and Bayelsa States to the Bonny Crude Oil Export Terminal.

Responding to concerns raised about the decline in oil production, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, assured Nigerians that measures are being implemented to address the situation promptly. He emphasized that issues related to the Trans Niger Pipeline have been addressed, and production is expected to rebound in the near future.

According to data from the Organisation of Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production witnessed a decline in March, marking the second consecutive monthly decrease this year. However, OPEC data also indicates that Nigeria’s average crude oil production in the first quarter of 2024 surpassed figures from the previous quarter, demonstrating efforts to stabilize production despite challenges.

Oil theft and pipeline vandalism continue to pose significant threats to Nigeria’s oil production, underscoring the need for robust security measures and infrastructure maintenance. Minister Lokpobiri reiterated the government’s commitment to maximizing oil production capacity and generating vital revenue to support national development initiatives outlined in the 2024 budget.

As Nigeria works to overcome obstacles in its oil sector, stakeholders remain focused on enhancing operational efficiency and safeguarding the nation’s economic interests amidst evolving challenges and opportunities.

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