Nigeria’s oil revenue gains as output hits 1.34million bpd

Nigeria, the largest producer of crude oil in Africa, recorded an increment in its crude oil output in December 2023, indicating improved earnings from the resource.

The country produced 1.34 million barrels of oil per day in the month. This is according to primary sources of the Organisation of Petroleum Exporting Countries (OPEC) in its latest Monthly Oil Market Reports (MOMRs).

Nigeria’s oil production increased month on month by 6.8 percent from 1.25 million bpd in November 2023. Further analysis revealed that the improvement stood at 6.1 percent from 1.26 million bpd in January 2023.

The average price of Brent crude, the international oil benchmark which Nigeria is gauged, stood at $77.63 per barrel in December, according to Statista.

Earlier, Heineken Lokpobiri, the minister of state for petroleum resources (oil), said that the increase in crude oil and condensate production was due to the government and sector operators identifying the source of the problem.

“We have a sole agenda and it is to increase crude oil production. Once you increase production there will be more revenue for Nigeria and that is the recipe for virtually all the problems we have in this country.

“You know that Nigeria is very dependent on oil, even our budget is always predicated on how many barrels of oil we produce. Although the non-oil sector is thriving, for us to solve our problems we need to earn enough Forex,” he said.

Also, the country’s rig count, a major index of measuring activities in the upstream sector, increased in the period to 16, indicating a 23 percent growth from January 2023.

But on month-on-month, the nation’s rig count increased from 14 recorded in November 2023, indicating an increase of 14 percent, according to data obtained from the oil cartel.

Kelvin Emmanuel, an energy expert and co-founder/CEO at Dairy Hills, attributed the rise in the rig count to sector reforms.

He said that recent changes, such as the government’s commitment to combating organised crude oil theft from flow stations to terminals, especially hot-pressure tapping from high-pressure pipes, may be responsible for this increase.

“The reality is that if these reforms are sustained, the rig count will rise as upstream companies commit more money to increasing output and abandoning divestment plans,” Kelvin said.

Last year, Rystad Energy said that offshore oil and gas production isn’t going anywhere, “and the sector matters now, possibly more than ever.”