adsIndigenous oil producers in Nigeria are raising investment in near-term extraction projects as rising crude oil prices triggered by the Middle East conflict boost industry revenues and strengthen the country’s drive to increase oil production.
According to Bloomberg reports, several local upstream companies are reinvesting windfall earnings from the ongoing Iran-related oil market disruption into drilling campaigns and production expansion projects aimed at raising output before the end of the year.
The development comes as supply constraints linked to the closure of the Strait of Hormuz, a major global oil and gas shipping route, continue to tighten global crude supply and push international oil prices higher.
Industry stakeholders say the present oil market environment presents a rare opportunity for Nigerian producers to accelerate production growth and capture additional market share amid tightening global supply conditions.
Wale Tinubu, chief executive officer of Oando Energy Resources, said the company plans to increase production by 30 percent to about 42,500 barrels per day by year-end through the drilling of additional wells.adsads
