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MD Of SPIE Oil And Gas, Nigeria

Guillaume Niarfeix’s Expert Prescription on Nigeria Oil Production

The main source of foreign exchange earnings for Nigeria has been her oil and natural gas, and fluctuations in crude oil prices have had a significant impact on Nigeria’s economy. According to data made public by the Organization of Petroleum Exporting Countries, Nigeria continued to be Africa’s top oil producer with its most recent crude oil output. Nigeria produced 2.5 million barrels per day (mbpd) of crude oil at its highest point.

oil and gas production

When one delves into history, the figures provide a clearer picture. Nigeria produced 2.15 million barrels of crude oil per day on average in 2000; this figure increased to 2.26 million barrels per day in 2001. There were variations in the years that followed: 2.08 mbpd in 2002, 2.23 mbpd in 2003, and 2.52 mbpd at its highest point in 2005.

However, the peak was not to last. Production gradually decreased from 2006 to 2016, reaching 1.89 mbpd at that point. The trend drastically declined, with only slight recovery in 2017 and 2018 (1.96 mbpd and 2 mbpd, respectively).

Nigeria’s production of crude oil fell to 1.45 million barrels per day in 2022. To make matters worse, during the peak of crude oil theft activities in August 2022, the country produced 972,000 barrels per day.

oil and gas

When looking at 2023, oil output (excluding condensates) is estimated by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to vary from 1 mbpd in March 2023 to a peak of 1.26 mbpd in April 2023.

This continued pattern emphasizes how urgent it is to deal with the causes of the drop and develop plans for a more strong and sustainable oil production environment as the nation has fallen short of its capacity to produce around 2.5 million bpd years back.

MD of SPIE Oil and Gas, Nigeria
Guillaume Niarfeix – MD, SPIE (Nigeria & Ghana) || Picture Credit: Marque Projection Photography

The Managing Director – SPIE Global Services Energy Nigeria & Ghana, Guillaume NIARFEIX, at the French Week Business Forum in Nigeria held in November 2023 talked about some of the factors affecting this drop and gives his expert solution.

“We used to produce in Nigeria around 2.2 million barrels a day. We’re now down to 1.2, still up from 850 not so long ago, so people are trying. I’ve seen that the government also announced that we will be back to 2.2 soon. I think it’s an interesting statement. First of all, you’re losing 10% to 15% of production every year if you don’t invest because of the normal diminishing of reservoir. The reason why the productions have reduced at the end of the day is just because the investment has not been there.”

Mr. Guillaume who has spent over two decades in Nigeria, also went ahead to state the uncertainty around political and legal stability as some other factors

“The reason for that is a lot of uncertainty around the stability politically and legally; clearly, the PIB and PIA, which was passed, I think, last year or the year before. There’s a lot of commenting on this PIA. The truth is it has the merit to exist, so we are happy to have something that gives us the rule of the game, basically. The rules are difficult, but at least we know them and we can play. I think we will see investment in the very near future. To increase the production of 1 million barrels per day, it will take in my opinion billions of dollars and 5 to 7 years minimum investment as a cycle, so we need to start ASAP and not waste any time.”

He also went ahead to recognize Total Energy who has been investing in Nigeria over the past 10 years because they trust that the situation in Nigeria will improve.

Despite Nigeria continuous plethora of difficulties, such as rising rates of poverty, glaring disparities, pervasive insecurity, a lack of suitable employment opportunities, slow economic growth, and ineffective public services, the country nonetheless has the largest economy on the continent of Africa, making it the undisputed economic powerhouse of West Africa.

Lawrence Blessing

Olarewaju Lawrence is a versatile content writer known for his creative approach and attention to detail. With a background in the Chemical aspect of Engineering and visual arts, Lawrence has worked on diverse projects ranging from Charcoal drawing, contents creation to website layouts with years of experience. His ability to understand trending occurrences and translate them into powerful striking contents visually sets him apart.
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This Post Has 20 Comments

  1. Navigating political and legal uncertainties is tough, but having clear rules through the PIA is a positive step. Thank you for sharing

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