The Nigerian government, in collaboration with major refineries such as Dangote Petroleum Refinery and eight others, is preparing for significant oil processing in the first half of 2025. The refineries will require 770,500 barrels of oil per day (bopd) for processing from January to June 2025. This comes as the Nigerian government aims to increase its crude oil production to over 2 million barrels per day (bpd), with a monthly target of 62 million barrels.
The Refineries and Their Requirements
The 770,500 bpd crude oil requirement will be distributed across several domestic refineries. Some of the notable refineries and their daily crude oil needs include:
– Dangote Petroleum Refinery: 550,000 bpd
– OPAC Refinery (Delta State): 10,000 bpd
– Waltersmith Refinery (Imo State): 5,000 bpd
– Duport Midstream (Edo State): 2,500 bpd
– Edo Refinery (Edo State): 1,500 bpd
– Aradel Refinery (Rivers State): 11,000 bpd
– Port Harcourt Refinery (Rivers State): 60,000 bpd
– Warri Refinery (Delta State): 125,000 bpd
– Kaduna Refinery (Kaduna State): 110,000 bpd
The total requirement of 770,500 bpd for these refineries represents about 37% of the country’s expected daily crude oil production for the first half of 2025, which is projected to be 2.07 million bpd.
NUPRC’s Efforts and Strategic Initiatives
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that this crude oil allocation is part of the government’s broader strategy to ensure optimal utilization of domestic refineries and promote self-sufficiency in oil production. This initiative is in line with Section 109 of the Petroleum Industry Act (PIA) 2021, which emphasizes the effective capacity utilization of the nation’s refineries.
In a bid to meet these goals, the NUPRC launched the Project One Million Barrels initiative in October 2024. This project is designed to increase Nigeria’s crude oil production capacity, focusing on boosting production for both domestic use and export. As part of this initiative, the NUPRC aims to achieve a daily crude production target of 2.5 million bpd in the short term.
Strengthening Domestic Refining Capacity
The goal is not only to increase production but also to enhance the country’s refining capacity, reducing dependence on imported refined products. By increasing synergy between local refineries and oil producers, Nigeria is setting the stage for a more robust and self-reliant petroleum landscape. With the government’s commitment to this transformation, the first half of 2025 is expected to witness more collaboration between refineries and oil-producing companies.
The refineries will source their crude oil from both international oil companies (IOCs) and local independent producers, such as Shell, Chevron, and Seplat Energy. The refineries’ different crude oil requirements are critical in meeting the target and ensuring that the domestic refining capacity grows to support the nation’s oil needs.
Nigeria’s Oil Production Performance in 2024
As of December 2024, Nigeria’s oil production showed a 7.38% year-on-year increase, reaching an average of 1.667 million bpd, including condensate, compared to 1.552 million bpd in December 2023. However, on a month-on-month basis, the country’s daily production declined by 1.35% from 1.69 million bpd in November 2024.
The highest daily oil output in December was 1.79 million bpd, while the lowest was 1.57 million bpd. Despite the increase in production, Nigeria again failed to meet its OPEC production quota of 1.5 million bpd, as its oil output excluding condensate averaged 1.484 million bpd.
In terms of output distribution, the Forcados Terminal recorded the highest production at 8.49 million barrels in December 2024, followed by the Bonny Terminal (7.78 million barrels) and the Qua Iboe Terminal (4.15 million barrels).
Conclusion: Nigeria’s Path Toward a Self-Sufficient Petroleum Industry
Nigeria’s oil sector is undergoing significant transformations, with the government and the NUPRC leading efforts to boost domestic production and refining capacity. The first half of 2025 will be pivotal for ensuring that refineries can access the crude oil they need, while at the same time increasing collaboration across the sector.
With the Project One Million Barrels initiative and enhanced synergies between refineries and oil producers, Nigeria is positioning itself to become a more self-reliant and efficient player in the global petroleum market. However, challenges such as meeting OPEC quotas and maintaining consistent production levels will continue to be critical factors in Nigeria’s journey toward strengthening its oil industry and sustaining economic growth.
