Nigeria Plans to Increase Oil and Condensate Production by 2026

The regulatory committee for the oil sector in Nigeria announced today, Monday, a target for annual oil and condensate production of 2.6 million barrels per day by 2026, a significant increase from the 2023 levels of approximately 1.6 million barrels per day. Nigeria, Africa's largest oil exporter, is facing a production decline due to crude oil theft, pipeline sabotage in the Niger Delta, and reduced investment in the sector, which has impacted government revenues. However, President Bola Tinubu's government states that "major oil companies have pledged to invest $13.5 billion in the short term following his meetings with top executives from Total Energies, Shell, and ExxonMobil." The committee's action plan for the period from 2024 to 2026 indicates that it will focus on developing oil assets in areas less prone to theft and sabotage and will provide regulatory support for alternative routes for transporting crude oil. It added, "Two of the three consulting firms commissioned by OPEC+ to verify Nigeria's production in November have indicated that it is unlikely for the country to reach its production target this year."