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Nigeria expects oil production to jump by 22% by year end

Nigeria expects oil production to jump by 22% by year end

Nigeria

Nigeria expects its oil production rate to jump by 22 percent by the end of this year to 2.2 million barrels per day, from the current production of around 1.4 million bpd, oil minister Emmanuel Ibe Kachikwu has said.

Kachikwu also hoped that a force majeure on all its oil fields would be lifted by December or January.

Oil sales account for 70 percent of Nigeria’s government revenues and recent attacks on oil installations by militants have heavily impacted production, with its largest export stream remaining under a force majeure.

Kachikwu said OPEC , which has agreed to cut world output to rescue prices, has however allowed a production window of 1.8 million bpd to 2.2 million bpd for the recession – hit west African economy.

The oil minister who is on a visit to New Delhi, India added that Nigeria is likely to sign a cash-raising oil deal with India for $15 billion by the end of this year.

The two countries are seeking to expand energy ties. In the last fiscal year ending March 31, Nigeria accounted for nearly 12 percent of all crude oil imports by India, one of the fastest growing economies and energy markets in the world.

Reuters

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