Nige­ria’s daily oil pro­duc­tion falls to 2.09 mil­lion bar­rels

The Punch - - BUSINESS FEATURE | ENERGY - ’Femi Asu

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The na­tion’s oil pro­duc­tion, in­clud­ing con­den­sate, de­clined by about 70,000 bar­rels per day to 2.09 mil­lion bpd in Oc­to­ber, com­pared to the pre­ced­ing month, new data from the Min­istry of Pe­tro­leum Re­sources have shown.

The data ob­tained by our cor­re­spon­dent from the min­istry on Fri­day showed that oil pro­duc­tion in the coun­try rose to a 2018 high of 2.16 mil­lion bpd in Septem­ber from 2.145 mil­lion bpd in Au­gust.

The na­tion’s oil out­put stood at 1.968 mil­lion bpd in July, up from 1.896 mil­lion bpd in June and 1.826 mil­lion in May.

The coun­try pro­duced 2.069 mil­lion bpd in April, 2.022 mil­lion bpd in March, 2.105 in Fe­bru­ary, and 2.070 mil­lion bpd in Jan­uary, the min­istry said.

The drop in Oc­to­ber comes af­ter a re­cent up­surge in sab­o­tage at­tacks on pro­duc­tion fa­cil­i­ties by oil thieves re­ported by the Nige­rian Na­tional Pe­tro­leum Cor­po­ra­tion.

The NNPC said on No­vem­ber 4 that sab­o­tage at­tacks on its oil pipelines were on the in­crease, and could po­ten­tially hurt oil pro­duc­tion and pe­tro­leum prod­ucts sup­ply.

In­dus­try of­fi­cials and an­a­lysts have also ex­pressed con­cern over a pos­si­ble up­surge in vi­o­lence in the na­tion’s oil sec­tor ahead of the gen­eral elec­tions next Fe­bru­ary.

The gov­ern­ment is hop­ing to see av­er­age oil out­put of 2.3 mil­lion bpd this year in or­der to fund its bud­get.

The Min­is­ter of State for Pe­tro­leum Re­sources, Dr Ibe Kachikwu, told S&P Global Platts on Wed­nes­day that the coun­try’s oil out­put was just below two mil­lion bpd with crude ac­count­ing for around 1.6 mil­lion bpd and con­den­sate com­pris­ing some 400,000 bpd.

Nige­rian out­put has been steady at around 1.6 mil­lion to two mil­lion bpd over the past two years, although still below its full ca­pac­ity of 2.2 mil­lion bpd.

In 2016, out­put slumped to around 30-year low of around 1.1 mil­lion bpd due to at­tacks on its key oil in­fra­struc­ture in the oil-rich Niger Delta.

A new re­port by PWC, ‘Africa’s oil and gas re­view’, said Africa’s share of global oil pro­duc­tion had slightly in­creased by 0.3 per cent since last year to 8.7 per cent, stand­ing at 8.1 mil­lion bpd.

It said, “The main con­trib­u­tors con­tinue to be Nige­ria, An­gola, Al­ge­ria and Egypt. Libya dou­bled pro­duc­tion in 2017, pro­mot­ing it to the fourth-largest oil pro­ducer in Africa with an 11 per cent share, mov­ing Egypt into fifth po­si­tion.

“Among the top five, Nige­ria and Libya were the only coun­tries to in­crease pro­duc­tion. The oth­ers de­clined, mostly in line with pro­duc­tion cuts agreed to by OPEC mem­bers. South Su­dan ex­pe­ri­enced an­other drop of 7.4 per cent in pro­duc­tion in 2017, but re­cent me­di­a­tions in peace-deal ne­go­ti­a­tions led to the re­sump­tion of the pump­ing of crude from sus­pended fields in Septem­ber 2018, hope­fully point­ing to­wards a turn­ing point for the coun­try.”

Ac­cord­ing to the re­port, proven oil re­serves in Africa have stayed at the same level of 7.5 per cent of global re­serves.

“Ex­plo­ration ac­tiv­ity con­tin­ued to de­cline in 2017. Africa was re­ported to have 487.8 tril­lion cu­bic feet of proven gas re­serves at the end of 2017, un­changed at 7.1 per cent of global proven re­serves. Two sig­nif­i­cant gas finds by Kos­mos En­ergy in the Sene­gal­mau­ri­ta­nia basin in 2017 added an ad­di­tional 1.5 bil­lion bar­rels of oil equiv­a­lent of gas to their port­fo­lio,” it added.

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