The Nigerian Petroleum Development Company (NPDC) will see its production grow to 500,000 barrels per day by 2020, according to a new commitment made by the Nigerian National Petroleum Corporation (NNPC).
The NPDC will also grow its natural gas production by 150 million cubic square feet per day over the same time period, according to Dr. Maikanti Baru, the managing director of the NNPC, who recently made a keynote address titled "NNPS's Commercial Strategy and Priorities" in Abuja.
"Beyond growing gas for the power sector, there has been a strategic positioning of the sector to support massive gas-based industrialization," he said during the speech. "We will incubate and midwife a portfolio of critical and mutually dependent investments - Central Processing Facilities, CPFs, Fertilizer, Petrochemical, Free Trade Zone, FTZ, infrastructure and Ports - which will jumpstart the gas revolution agenda. NNPC intends to develop or take equity in some of these gas-based industries such as fertilizer and others."
The Nigerian oil official expressed confidence that the country's oil and gas sector had started down the road to recovery as barrel prices trend closer to $60. Pipeline vandalism in the Niger Delta by militant groups - a major cause of the drop in exports that Nigeria saw last year - is now becoming less frequent, according to the government.
"We are having a lot of engagements with people in our core area of operations in the Niger Delta and this is bringing a lot of hope," Baru said. "If we go by the number of pipeline vandalism cases, they have dropped to an average of 20 per cent on a monthly basis as against a similar period last year. This is an indicator that calm is returning to the environment," he added.
By Zainab Calcuttawala For Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on… More