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BusinessDay

Nigeria retains Africa’s top oil producer spot

Nigeria’s oil production woes threaten 2024 budget

Nigeria sustained its position as the largest oil producer in Africa for two straight month, as it pumped 1.235 million barrels per day (bpd) in December, according to the Organization of the Petroleum Exporting Countries (OPEC) data.

The latest monthly oil market report released by OPEC on Tuesday shows that Nigeria’s oil output increased by 50,000 bpd, based on direct communication.

Last month, Timipre Sylva, minister of state petroleum resources, said that improved security surveillance along major crude oil pipelines is helping to shore up oil production from about 900,000 barrels per day to between 1.4 and 1.6 million barrels.

The minister said oil majors in the country drastically cut down production due to massive vandalism and theft of crude oil in the Niger Delta region by criminal elements.

Mele Kyari, group chief executive officer, Nigerian National Petroleum Company (NNPC) Limited, at the 13th Global UAE Energy Forum, held recently, said that by the end of December Nigeria was pumping 1.519 million bpd.

In December, Bala Wunti, chief investment officer, NNPC said the return of the Forcados and partial restoration of the Trans Niger Pipeline (TNP) increased the country’s oil production to 1.6 million bpd as of December.
Wunti said the country ramped up production by collaborating with security agencies, regulators, oil-producing communities and other stakeholders to curb oil theft.

Read also: How Nigeria’s export processing terminals will boost intra-African trade and non-oil exports

The report for December revealed that Angola’s oil production stood at 1.088 million bpd, while Algeria pumped 1.01 million bpd, based on direct communication.

OPEC uses secondary sources to monitor its oil output, but also publishes a table of figures submitted by its member countries.

The 13-member oil cartel also revealed in the report that Saudi Arabia lost 32,000 bpd last month; the highest loss among its OPEC peers.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in its monthly oil production status report states that Nigeria pumped 1.123 million bpd last month, the highest recorded since March last year.

Data from the upstream regulatory body shows that the country’s oil output increased by 32 percent from 937,766 bpd in September last year.

According to secondary sources, total OPEC-13 crude oil production averaged 28.97 million bpd in December 2022, higher by 91,000 bpd month-on-month.

“Crude oil output increased mainly in Nigeria, Angola, Libya and Venezuela, while production in Kuwait, Congo and Algeria declined,” OPEC said.

Preliminary data indicates that global liquids production in December increased by 0.3 million bpd to an average of 101.7 million bpd compared with the previous month.

“Non-OPEC liquids production (including OPEC NGLs) is estimated to have increased month-on-month in December by 0.2 million bpd to average 72.8 million bpd. This was higher by 2.8 million bpd year-on-year,” the 13-member oil cartel said.

“The share of OPEC crude oil in total global production remained unchanged at 28.5 percent in December, compared with the previous month.”

According to OPEC, estimates are based on preliminary data for non-OPEC supply, OPEC NGLs and non-conventional oil, while assessments for OPEC crude production are based on secondary sources.