Stakeholders commend FG’s plan to increase oil production to 2.5mbpd

Stakeholders commend FG’s plan to increase oil production to 2.5mbpd

Some oil and gas stakeholders on Wednesday commended the Federal Government for its economic recovery plans to boost Nigeria’s oil production from 2.1 mbpd to 2.5 mbpd production by 2020.

They made the commendation in a separate interviews with the News Agency of Nigeria (NAN) in Lagos.

NAN reports that the Federal Government on March 7 launched its Economic Recovery Plan and Growth Plan (ERGP) targeted at restoring oil production to 2.2 mbpd in 2017 and 2.5 mbpd by 2020,among others.

The Federal Government also promised to make the nation self sufficient in refinery of petroleum products not only for domestic consumption and also to become a net exporter by 2020.

Mr Saka Matemilola, the Chairman, Society of Petroleum Engineers ( SPE), Nigeria Council, said that government’s projection of 2.5 million barrel daily production was achievable, adding that the country’s production could also be up to 3mbpd with the ongoing negotiation.

According to Matemilola: ” we can even do three million barrel production daily, we have capacity to boost production to that level very easily, but it just about the infrastructure because Forcados it still not open yet .

“It not a tall order in my own opinion, it’s something we can even do within two to three years.

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Matemilola, who is also the Chief Petroleum Engineer, First Exploration and Production Development Company Limited, stressed that the projection was in order and achievable, but added that adequate security remained a big challenge.

He advised government to put in place effective infrastructure to fast track the success of the plan, adding that once government was able to resolve the issue of pipeline vandalism the target was achievable.

Mr Biodun Adesanya, the National President, Nigerian Association of Petroleum Exploationists (NAPE), said that for government to achieved its economic recovery plan, it should conclude the total liberalisation of the downstream sub-sector of the petroleum industry.

Adesanya said that government should also implement a new business model for the inefficient refineries which had gulped several millions of dollars in Turn-Around-Maintenance and which had failed to achieve desired goals over several decades.

According to him, “the target is possible and achievable, but vandalism remains the only hindrance, but the acting President had visited al the Niger Delta states and told them of government’s position to develop the states.

“My feeling is that if they listen and pipeline vandalism is addressed, the economic recovery plan target to hit 2.5 MBPD production is achievable if we don’t have disruptions .

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Adesanya, who is also the Managing Director, Degeconek Nig. Ltd, said that: “If you look at the facts, both production from the JV terminals and the Floating Production Storage and Offloading (FPSO) in the deepwater areas have largely been sustaining Nigeria production in spite all the attack on the pipeline by militants.

“ Most of the deepwater fields are producing optimally right now.

NAN recalls that government released its Economic Recovery and Growth Plan (ERGP) with a view to restoring macroeconomic stability and unleashing various sectors towards achieving the nation’s full economic potential.

The ERGP’s core vision is sustained inclusive growth through structural economic transformation with emphasis on improving both public and private sectors’ efficiency to increase national productivity and achieve sustainable diversification of production. (NAN)

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