Nigeria to boost oil production to 2.1 million bpd by end of 2024

African nation's output stood at 1.41 million bpd in August

Pipelines in Ogoniland in the Niger Delta. Attacks on pipelines in the region have damaged Nigeria's oil output. Reuters

Nigeria expects to lift oil production to 2.1 million barrels per day by the end of next year after oil companies operating in the country committed investments of $13.5 billion in the short term, the presidency said on Saturday.

Nigeria is Africa's largest oil producer but its output has been in decline due to massive crude theft, attacks on pipelines in the Niger Delta region and lack of investment, causing dwindling government revenues and large fiscal deficits.

Oil production stood at 1.41 million barrels per day (bpd) in August, up 8 per cent from July, data from the petroleum regulator shows.

President Bola Tinubu's special adviser on energy, Olu Verheijen, and the petroleum regulator held a series of meetings with 15 oil firms, including Total, Chevron, Shell and ExxonMobil to discuss how they could ramp up production, the presidency said in a statement.

The companies had identified some obstacles to investments, which the government would tackle, the presidency said, without giving details.

“With the conclusion of these consultations, it is anticipated that the $13.5 billion in short-term investment components currently in the pipeline will pave the way for the delivery of 2.1 million barrels per day production by December 2024, barring any unforeseen challenges,” the statement said.

ExxonMobil has pledged additional oil production of nearly 40,000 barrels per day in Nigeria, a presidential spokesperson said on Tuesday, citing a senior executive from company.