Lokpobiri Reassures Commitment to OPEC Despite Rising Oil Output

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has assured that Nigeria remains fully committed to the rules of the Organisation of Petroleum Exporting Countries despite recent gains in crude oil output.

Lokpobiri said Nigeria would not exceed its production quota but would continue to push for a higher allocation to reflect its capacity and ongoing sector reforms.

His remarks come amid fresh data showing that Nigeria has kept crude production above its OPEC quota for the second month running, with output rising slightly by 2,000 barrels per day from 1.505 million bpd in June to 1.507 million bpd in July, according to the OPEC Monthly Oil Market Report.

Nigeria’s average daily crude production rose to 1,507,000 barrels per day in July, according to a report by the Organisation of the Petroleum Exporting Countries. This is a 7,000-barrel-per-day increase above the quota approved for Nigeria by OPEC.

Speaking during his keynote address at the 4th edition of the Petroleum and Energy Leadership Summit in Abuja on Wednesday, the minister noted that Nigeria’s daily crude production had risen to around 1.8 million barrels, up from less than one million barrels at the time he assumed office.

He said, “This is not the success of one person but the result of government reforms, industry collaboration and the resilience of our workforce. Our target is to exceed two million barrels daily. However, let me assure you that we will not breach OPEC rules. Nigeria remains a committed member of the cartel.

We will explain better to them that we are a committed member of OPEC. We have no ambition to exceed the OPEC quota. But we also have the ambition to improve our quota. Local, domestic, regional, and global employment.”

The minister also disclosed that he was recently in Vienna, Austria, where OPEC’s 27 member countries and experts agreed that oil would remain the dominant energy source for at least the next 50 years.

According to him, while Western nations pressure developing countries to scale down production in the name of energy transition, they continue to expand their output.

“No country is slowing down production. The United States today produces over 20 million barrels daily. China and Europe – everyone is ramping up. Yet, they tell Africa to cut back. Nigeria has done more than many countries in the energy transition. We have a climate change law and penalties on gas flaring, but we cannot run faster than the big polluters,” Lokpobiri stated.

On domestic refining, the minister urged local refineries, including the Dangote facility, to take advantage of Nigeria’s high-grade crude to maximise output.

“It makes more economic sense for Nigerian refineries to process our own crude and blend it and maximise by-products rather than depend on imports. Our crude remains one of the best in the world,” he said.

Lokpobiri also warned that non-performing licence holders risked losing their permits. He revealed that out of more than 60 marginal field licences awarded, fewer than six had become operational.

“Why should we extend licences to people who have shown no capacity? We need every available well to be productive. Those who cannot deliver will have their licences revoked,” he warned.

Lokpobiri stressed that reforms introduced by President Bola Tinubu’s administration, including executive orders on contracting cycles, non-associated gas development, and tax incentives, had helped restore investor confidence.

He added that the government would continue to strengthen partnerships with training institutions such as the Petroleum Training Institute and the Petroleum Technology Development Fund to boost local expertise.

“The confidence of the industry is back, but we must sustain it. Nigeria’s oil and gas sector is too critical to our economy to be undermined by policy inconsistencies or inaction. The future depends on how we balance investment, environmental responsibility, and energy security,” he said.

In his opening address, the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, demanded an end to gas flaring and unsafe working conditions in the oil and gas industry, warning that environmental degradation and loss of lives cannot continue to be the price of energy production.

He said the union would no longer tolerate companies that cut corners at the expense of workers’ safety.

“Gas flaring must end. Polluted sites must be restored. Accountability must be enforced for today and for generations to come,” Osifo declared, stressing that protecting workers and the environment must remain a top industry priority.

The PENGASSAN president lamented that despite years of advocacy, some oil platforms remain unsafe, leading to avoidable tragedies. He recalled the October 24, 2024, helicopter crash around Bonny, which killed three PENGASSAN members.

“Last year, a tragic event occurred that led to the death of three of our members and others in a helicopter crash around Bonny as they travelled to work. As we await the final report on that incident, we will continue to examine the safety of helicopter operations in the oil sector. Every life matters, and no life should be lost to negligence,” he said.

Osifo also stressed that environmental, social and governance principles were now critical to industry survival, warning operators that sustainability was no longer optional.

“ESG is no longer a tick-box exercise but a lifeline to ethical progress. Climate change and environmental degradation demand urgent action. Financial institutions now expect oil and gas companies to prove their ESG commitment with clear reporting alongside financial statements,” he added.

The summit, themed ‘Building a Resilient Oil and Gas Sector in Nigeria: Advancing HSE, ESG, Investment and Incremental Production’, is expected to examine safety, sustainability, policy, and welfare issues confronting the oil industry.

On investment and production, the labour leader acknowledged recent reforms, including presidential executive orders on contracting cycles, non-associated gas development, and tax incentives. However, he cautioned against incessant amendments to the Petroleum Industry Act.

“Amendments to laws are inevitable, but they must not be done haphazardly and intermittently, even before the stakeholders the laws are intended to serve fully understand them. Investors need certainty for medium- to long-term planning. Policy somersaults and frequent legal changes are a disincentive to investment,” Osifo warned.

He also praised regulators and industry workers for stabilising crude oil production after output fell to 800,000 barrels per day in 2021.

“Thanks to the resilience of our workforce and support from operators, production is now climbing. But sustaining this growth requires addressing pipeline insecurity, contract bottlenecks, funding gaps, and policy inconsistencies,” he noted.

In his remarks, Group CEO of NNPC Ltd, Bayo Ojulari, lauded PENGASSAN’s leadership and described PEALS as a strategic platform aligning labour, industry, and government to shape Nigeria’s energy future.

He reaffirmed NNPC’s focus on innovation, collaboration, and safety, noting that partnerships with unions and regulators were essential to building a globally competitive oil and gas sector.

Minister of Labour and Employment Muhammad Dingyadi also addressed the summit, urging Nigeria to lead, not just follow, in the global shift toward cleaner energy and ethical industry practices.

“Resilience in oil and gas is not only about infrastructure or investment but also about people, labour policy, and empowering the workforce,” Dingyadi said.

He reiterated the ministry’s commitment to tripartite dialogue, decent work, skills development, and fair wages.

He further emphasised that health and safety must be “non-negotiable pillars” of a resilient energy system and urged companies to prioritise ESG compliance.

He called on unions to pursue constructive engagement and on government agencies to streamline regulations that balanced labour welfare with investment.