Nigeria’s Oil Production Sinks to 3-Month Low as Crude Oil Theft Persists
Nigeria’s crude oil production has dropped to the lowest level in three months, according to data released by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and the Organization of Petroleum Exporting Countries (OPEC).
The figures disclosed by both entities indicate that Nigeria’s daily average production of crude oil now stands at 1.018 million barrels per day.
During the month of July, the nation’s production hit its second lowest point of the year 2023. This output is noticeably lower than the 1.249 million barrels per day achieved in June and the 1.184 million barrels per day recorded in May.
In total, Nigeria managed to produce 33.5 million barrels of crude oil throughout July, a considerable drop compared to the 37.4 million barrels produced in June and the 36.6 million barrels in May.
July’s crude oil production marks the second lowest point reached in the year, with the lowest being the 29.9-million-barrel production witnessed in April.
The drop in July’s oil output indicates the nation’s inability to generate a significant 661,000 barrels per day within the stipulated timeframe.
This subpar performance can be directly attributed to the fact that the Organization of the Petroleum Exporting Countries (OPEC) had designated a production quota of 1.742 million barrels per day for Nigeria during this particular period.
The interruption in production at the Forcados crude oil terminal in Nigeria, caused by a leak at the export terminal, added to the industry’s woes. Shell Petroleum Development Company (SPDC) suspended production at the Forcados facility in mid-July due to the suspected leak.
The temporary halt in loading at the Forcados crude oil facility effectively dashed any hope of the country achieving its anticipated gradual production recovery.
Nigeria has consistently fallen short of its OPEC target since the latter half of 2020, when pandemic-induced cuts due to Covid-19 were implemented.
The decrease in production at the Forcados terminal significantly contributed to the overall decline in the nation’s crude oil output.
June’s production at the Forcados terminal was at 7.08 million barrels, but this number plummeted to just over 2 million barrels in July.
Amidst the challenges, the ongoing problem of crude oil theft in the Niger Delta further hindered Nigeria from meeting its OPEC production quota of 1.7 million barrels per day.
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The Nigerian National Petroleum Company Limited (NNPCL) reported over 240 incidents of crude oil theft in a single week, highlighting the persistent nature of this issue.
Nigeria’s struggle against crude oil theft in the Niger Delta has persisted for decades. A notable incident in July involved the apprehension of a vessel laden with stolen crude oil on the country’s shores by local security company Tanita.
