Nigeria’s Oil Production Falls Below 1Mbpd

Nigeria’s Oil Production Falls Below 1Mbpd

Nigeria’s crude oil production fell below 1 million barrels per day (mbpd) in August, figures from its regulator show, as the nation grappled with widespread theft from its pipelines. READ: Oil Theft Rises to 120,000 Barrels Per Day

The country’s total oil and condensates output dropped to an annual low of 1.18 mbpd in August, Reuters reports, citing data from the Nigerian Upstream Petroleum Regulatory Commission showed.

Industrial-scale oil theft poses an “existential” threat to what is typically Africa’s largest exporter, a Shell executive said in July, while President Muhammadu Buhari has said the problem is affecting state finances “enormously”.

Nigeria slipped behind Angola as Africa’s largest exporter in July, according to figures from the Organization of the Petroleum Exporting Countries (OPEC).

The highest output, in January, was 1.68 million bpd, though the country has the capability to export close to 2 million bpd.

An oil workers’ union this week voiced its concern over the safety of its members and threatened to strike if the government does not take swift action to curb oil theft.

On crude oil and gas sales, it was noted that NNPC lifted 7.27Mbbls (Export & Domestic Crude) in June 2022 recording 18.68% decrease relative to the 8.94Mbbls lifted in May 2022.

Production in June 2022 averaged 1.238 bpd (OPEC), according to NNPC. In August, NPPC said it earned nothing from exports of crude oil but NLNG’s feedstock Gas receipt was $93.88 million, inclusive of $9.39 arrears. The sum of N400,469,663,160.14 was reported as the gross domestic crude oil and gas revenue for the month of July 2022, NNPC said.

It added that the value shortfall on the importation of PMS recovered from July 2022 proceeds is N448,782,119,154.91 while the outstanding balance carried forward is N1,044,514,420,619.73. # Nigeria’s Oil Production Falls Below 1Mbpd