Nigeria’s Oil Production Dips in April, Falls Short of Targets
Nigeria’s crude oil production declined in April, averaging 1.354 million barrels per day (bpd) according to OPEC’s secondary sources. This represents a decrease of 46,000 bpd compared to March’s figures.
Key Points:
- Production Decline: Nigeria’s oil output dropped from 1.4 million bpd in March to 1.354 million bpd in April.
- OPEC vs. Direct Communication: OPEC’s secondary source data shows a decline, while figures based on direct communication with Nigeria indicate a slight increase (1.281 million bpd) compared to March.
- Production Shortfall: Both figures fall below Nigeria’s OPEC quota (around 1.5 million bpd) and the nation’s budgeted benchmark of 1.78 million bpd for 2024.
- Challenges to Production: Low investment, unclear regulations, inadequate infrastructure, pipeline vandalism, and oil theft are cited as reasons for the production struggles.
Nigeria’s Reserves Remain High:
Despite production issues, Nigeria boasts significant crude oil and natural gas reserves, estimated at 37.5 billion barrels and 209.26 trillion cubic feet (tcf) respectively, as of January 2024.
Looking Ahead:
Nigeria faces an ongoing challenge in reaching its oil production targets. Addressing the aforementioned obstacles will be crucial for the nation to maximize its oil revenue potential.
