Nigeria's Oil Production Held Hostage by Aging Infrastructure

Nigeria's oil production is facing a significant challenge due to a 50-year-old problem, according to Oritsemeyiwa Eyesan, the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The issue at hand is asset integrity, specifically ageing pipelines and terminals that may be harder to fix than the politics surrounding oil production.

The NUPRC believes that regulatory reform, indigenous operators, and renewed deepwater investment can help lift production towards 3 million barrels a day. However, Eyesan's concern about asset integrity suggests that this goal may not be achievable if left unaddressed.

Instead of focusing on security threats such as theft, militants, or community unrest in the Niger Delta, Eyesan emphasizes the importance of maintaining the existing infrastructure to ensure steady oil production.