Nigeria is intensifying efforts to raise crude oil production by an additional 100,000 barrels per day (bpd) as tightening global supply conditions and ongoing geopolitical tensions continue to reshape international energy markets.
The production push comes amid growing concerns over supply disruptions linked to the conflict involving Iran and reduced crude flows across parts of the Middle East, developments that have sustained volatility in global oil prices and strengthened demand for alternative supply sources.
Latest industry data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed Nigeria’s total liquid output currently averaging about 1.66 million barrels per day, supported mainly by major offshore assets including Bonga, Erha and Egina.
Although production levels have occasionally approached 1.8 million barrels per day in recent months, industry operators said infrastructure limitations, crude theft and operational disruptions continue to prevent the country from consistently sustaining higher output levels.
Officials and upstream operators said Nigeria is now looking to leverage current market conditions by accelerating production growth and expanding upstream investment activities.
NNPC Limited is also increasing crude supply allocations to key domestic assets, including the Dangote Petroleum Refinery, as local refining capacity continues to expand.
Industry stakeholders said stronger crude prices and tightening global supply have improved the commercial outlook for upstream projects, encouraging operators to accelerate drilling programmes and field development activities.
Among the companies expanding operations is Oando Plc, which recently launched a seven-well drilling campaign targeted at adding about 10,000 barrels per day to production before the end of the year.
The company is also pursuing a broader expansion strategy involving plans to raise up to $750 million to finance a large-scale onshore drilling programme expected to significantly increase production capacity over the coming years.
Meanwhile, Heirs Energies has secured financing support from African Export-Import Bank to refinance existing obligations and accelerate field development projects.
Industry analysts said current market conditions have strengthened investor interest in upstream oil projects, particularly among producers capable of delivering incremental supply within relatively short timelines.
The Federal Government has continued to pursue a longer-term target of increasing Nigeria’s crude and condensate production beyond two million barrels per day as part of efforts to improve foreign exchange earnings, strengthen public revenue and expand the country’s role within the global energy market.
Analysts, however, noted that sustaining production growth would depend largely on improved pipeline security, stable operating conditions, infrastructure reliability and continued investment inflows into the upstream sector.