Nigeria Intensifies Efforts to Combat Oil Bunkering/ Theft, Aiming for 3 Million BPD Production by 2025

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Nigeria is intensifying its efforts to combat rampant oil theft in the Niger Delta as part of a broader plan to ramp up national oil production to 3 million barrels per day (bpd) by 2025. The country, Africa’s largest oil producer, heavily depends on crude oil exports, which account for around two-thirds of government revenue and over 90% of foreign currency earnings.

Recent years have seen a significant decline in Nigeria’s oil output due to large-scale theft, with oil production falling far below its potential. While official projections for 2024 anticipate a production rate of 2.06 million bpd, actual figures have remained closer to 1.8 million bpd. This gap has adversely affected government finances, underscoring the urgency of curbing oil theft.

In response, Nigeria has expanded its crackdown on oil theft through “Operation Delta Sanity” (OPDS), launched by the Ministry of Petroleum and the Nigerian Navy in 2023. The operation is now entering its second phase, featuring enhanced capabilities including armed drones, attack helicopters, and bolstered intelligence-gathering efforts. Nigerian Navy Chief Emmanuel Ogalla stated that these reinforcements could increase oil production beyond the estimated budget target of 2.06 million bpd, with a goal of reaching 3 million bpd by 2025.

“The progress we’ve made is significant,” Ogalla remarked, noting that oil production increased from 1.4 million bpd when the operation began last year to 1.8 million bpd today. “With the new assets and the strengthened operation, we are confident in surpassing our target.”

The oil theft problem has long plagued Nigeria’s oil-rich Niger Delta region, with illegal siphoning of crude creating serious environmental and financial concerns. To further support the operation, the Rivers State Government donated six gunboats to the Navy, aiming to increase the effectiveness of patrols and reduce criminal activity.

Junior Minister for Petroleum Heineken Lokpobiri emphasized the progress made since taking office in August 2023, stating that Nigeria’s average daily production was barely above 1 million bpd at the time. He reiterated that achieving the 3 million bpd target would be vital for strengthening the national economy, and expressed confidence that the enhanced OPDS would be central to this success.

By addressing oil theft and improving security in the Niger Delta, Nigeria is setting the stage for a significant increase in oil production, which is crucial for the country’s economic stability and growth.

Picture from freepik

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