Nigeria will increase its oil production to 1.8 million barrels per day (MMbbl/d) in 2019 and raise condensate production to 0.5 MMbbl/d, the managing director of Nigerian state oil firm NNPC said Nov. 13.
Nigeria currently produces 1.6 MMbbl/d of oil and 0.4 MMbbl/d of condensate, Maikanti Baru told Reuters.
NNPC is in the final stages of talks with consortiums including top traders, energy majors and oil services companies to revamp its long-neglected oil refineries in an effort to reduce its reliance on imported fuel. Baru said he expected deals to be signed this month.
“We are on it and we’re almost done,” he said.
He added that NNPC could also sign crude-for-product deals with Shell and ExxonMobil, similar to the one signed with BP on Nov. 1, if they showed interest.
NNPC imports about 70% of Nigeria’s fuel needs, mainly gasoline, via swap contracts. It has contracts, known as direct sale direct purchase agreements, with 10 consortiums that include trading houses Vitol, Trafigura, Mercuria and Total.
Exxon Mobil Corp. has evacuated dozens of its foreign staff from the West Qurna 1 oil field, but work is still going on, according to multiple reports.
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The winning companies offered bids totaling $724 million, the government said, to explore the areas that are located in the South Atlantic, some near the Malvinas Islands under the control of the British government, but whose sovereignty is claimed by Argentina.