Oil output may reach 2.2 million bpd by the end of June-Durotoye
Stories by Dirisu Yakubu with agency reports
As tensions have calmed in the Delta region due to talks between the militants and the government, oil production could reach 2.2 million barrels per day (bdp) by the end of June, said Pade Durotoye, chief executive of Oando Nigeria, on May 24.
“We think that the worst is behind us. Before the end of June, we will have Forcados back, which would take us comfortably back to 2.2 million bpd,” Durotoye said.
Let’s recall that recently, Oando expressed interest in working with Italian Eni to rehabilitate the Port Harcourt refinery. This and the upcoming reopening of the Trans Forcados oil pipeline could indeed contribute to an increase in oil output in Nigeria.
However, there is still the looming risk that OPEC will ask the country to freeze production. A development that will not help Nigeria which is currently in its first recession in 25 years, mainly driven by a slump in prices of oil, its main export, last year, and a lower production due to attacks on key infrastructures in the Delta region, the country’s oil hub.