Highlights From Mallam Kyari’s Feature Interview At The 13th Global UAE Energy Forum Panel

What oil production is Nigeria targeting in 2023?

Security challenges around oil operations in the country became very manifest early on in 2022 and we took steps to bring back production, which has paid off. In July, net crude oil output, excluding condensates, had dropped to one million barrels, the lowest in the history of our industry. By the end of December, production was 1.5mbd and the trajectory for the end of this year, including condensates, is 1.8mbd to 2.2mbd. In terms of products, when we get our refinery capacities back by mid-year, the combined national capacity will be around 1.1l million barrels, so we will have a net difference that will have to be exported as that exceeds our domestic requirements.

Outlook for global oil demand-supply balances and prices in 2023?

The volatility in prices last year was unprecedented. The line of sight around new production coming online is also limited because of the general lack of investment and financial constraints, so we don’t expect a significant recovery in supply over the next two years. That means we will have to live with this range of prices for a while to come. And demand will not collapse the world is coming back from COVID-19 and there are many countries, particularly in sub-Saharan Africa, where economies are growing very fast, against all odds. So, $75 to $80 oil is a very realistic price for the time being.

Can developing economies live with $80 oil?

When prices get too high, demand adjusts and drops and countries also come up with other approaches to finding energy sources. Most producers and consumers in the industry see $60 oil as a good price but whenever there are issues around supply, the world learns to live with $75 to $80, which is of course a challenge for many African countries.

The Nigerian National Petroleum Company Limited  the Group Chief Executive Officer, Mallam Mele Kyari spoke on the topic “Outlook for Africa/Nigeria’s Oil & Gas Sector in 2023?”