PETAN Calls for Increased Crude Production to Optimize Refineries – Stay Updated with EnviroNews on Climate Action and Energy Innovations

The Petroleum Technology Association of Nigeria (PETAN) has stressed the need for Nigeria to significantly ramp up crude oil production to keep pace with its expanding refining capacity. This boost would enhance both local supply and exports.

During the Offshore Technology Conference (OTC) held on May 11, 2025, in Houston, Mr. Wole Ogunsanya, the PETAN chairman, explained that Nigeria currently produces about 1.8 million barrels of oil per day (bpd). However, he stressed that this figure needs to rise to between 2.5 and 3 million bpd to meet growing demands.

Ogunsanya noted that Nigeria’s refineries require approximately 900,000 bpd, which includes 650,000 bpd for the Dangote refinery, 200,000 bpd for NNPC, and 50,000 bpd for modular plants. Additionally, the upcoming BUA Refinery is expected to add another 350,000 bpd by next year, further increasing local demand for crude.

“To stay competitive and self-sufficient, Nigeria must create a sustainable strategy for increasing oil production,” Ogunsanya remarked. He highlighted the importance of fulfilling local demand while ensuring exports remain stable, as this balance is crucial for the country’s oil-dependent economy.

However, Ogunsanya pointed out that infrastructure issues, such as a lack of drilling rigs and inadequate pipeline networks, hinder production growth. To tackle these challenges, PETAN is investing in enhancing domestic capabilities.

Recently, three Final Investment Decisions (FIDs) were approved, which Ogunsanya called a game-changer for the oil service sector in Nigeria. These decisions will not only create opportunities for PETAN members but also help minimize idle resources and create jobs throughout the energy value chain.

Reflecting on Nigeria’s increased visibility at OTC 2025, Ogunsanya expressed pride in the country’s unified presence, noting a more impactful Nigerian Pavilion aligned with directives from the Minister of Petroleum. He emphasized that Nigeria’s oil and gas sector is at a critical juncture, where growth and collaboration are essential for future success.

Statistics further underscore the urgency of this undertaking. According to reports from the Nigerian National Petroleum Corporation (NNPC), oil production has fluctuated in recent years, and missed targets have led to significant revenue losses. In 2020, Nigeria’s oil revenue dropped by about 70% due to global price decreases and production cuts amid the pandemic.

Looking ahead, Ogunsanya’s insights highlight the need for a multi-faceted approach that includes not only increasing production but also enhancing the technological infrastructure and regulatory environment to support these goals. The future of Nigeria’s oil industry hinges on its ability to adapt swiftly and effectively to these pressing challenges.

For further insights, you can check the full report from the NNPC.

By Yunus Yusuf

Source link

crude oil,Petroleum Technology Association of Nigeria (PETAN),Refineries