Nigeria to boost oil production, earnings as crude price soars ─Minister

*Chief Timipre Sylva, Minister of State for Petroleum Resources, discloses Nigeria is intensifying efforts at increasing oil production to take advantage of the high price in the global market to boost national revenue

Isola Moses | ConsumerConnect

In maximising the increasing oil price regime, H.E. Chief Timipre Sylva, Honourable Minister of State for Petroleum Resources, has said that the Federal Government is deepening effort at accelerating oil production output to take advantage of global crude price.

ConsumerConnect reports the Minister discloed this development in Abuja, FCT, while while briefing reporters on the forthcoming Nigeria International Energy Summit (NIES 2022) scheduled for February 27 to March 3, 2022.

Chief Sylva reacting to the global oil benchmark Brent Crude, which rose over five percent to trade at US$103.33 per barrel amid the mounting tensions between Russia and Ukraine.

Oil prices jumped on concerns of global supply disruptions from the impact of trade sanctions on major crude and fuel exporter Russia after it invaded Ukraine, according to report.

The Minister, on the rising prices of crude, including Brent, which rose to 103.33 dollars from 96 dollars per barrel in the global market, said Nigeria’s production was not optimal hence it was encouraging increased production.

According to him, already Nigeria’s oil production was not where it was few months ago, adding that it needed to climb up gradually and before the end of 2022, Nigeria would have completely regain its production.

Our oil production at this point is not very optimal; we will rather like to have a production that can take advantage of the high price through high input, said Sylva.

The Minister also noted: “A lot is going on, we are not happy that we are not able to take advantage of high prices, it is our loss, and we are doing everything to ensure that we increase our production.

“In the industry, the price of oil was being determined by a lot of fundamental issues.”

Sylva added: “When oil prices go high it means that there are other competing production that will also come up, for example, the Shale Oil producers in US will now find it profitable whereas if it is at a certain level, it will not be profitable for them to produce.

“Once oil prices go up to a certain point, you are encouraging other production that otherwise will not be in the market.

“We are not happy when oil prices go to a certain level rather it should be at a point which will be optimal for us.”