Oil pro­duc­tion in June drops to 1.89b/d – FG

Daily Trust - - INSIDE POLITICS - By Daniel Adugbo

Nige­ria’s crude oil and con­den­sate pro­duc­tion has re­mained far lower than pro­jected in the 2018 bud­get for the last two months, data re­leased by the coun­try’s petroleum min­istry has shown.

The min­istry in its lat­est Periscope News­let­ter distributed yes­ter­day to news­men showed that crude oil pro­duc­tion in­clud­ing con­den­sate stood at 1.82 mil­lion bar­rels per day (b/d) in May and 1.89 mil­lion b/d in June 2018.

These were lower than the av­er­age 2 mil­lion b/d crude oil pro­duc­tion the coun­try recorded in the first four months of 2018 and are still far lower than the 2.3 mil­lion b/d pro­duc­tion bench­mark set in the 2018 bud­get.

The news­let­ter, which the min­istry uses to de­liver up­dates on key events and ac­tiv­i­ties in the Nige­rian oil and gas sec­tor, showed that av­er­age pro­duc­tion be­tween Jan­uary and April was 2 mil­lion b/d ex­cept in Fe­bru­ary when the coun­try hit 2.1 mil­lion b/d.

Pres­i­dent Muham­madu Buhari re­cently signed the N9.1 tril­lion 2018 bud­get into law which is premised on 2.3 mil­lion bar­rels per day oil pro­duc­tion tar­get and $51 per bar­rel price.

Daily Trust re­ports that al­though oil prices have been rel­a­tively sta­ble and trad­ing above $70 per bar­rel for the first time since Novem­ber 2014, the coun­try’s crude oil pro­duc­tion and ex­ports have been hurt.

The im­pli­ca­tion of the drop in oil pro­duc­tion is that de­spite the rally in oil price, the gov­ern­ment could miss pro­duc­tion and rev­enue tar­gets set in the 2018 bud­get.

In May, ship­ments of the coun­try’s most sought-af­ter crude, Bonny Light, were sus­pended af­ter an out­age on the Nembe Creek Trunk Line (NCTL), one of the two main pipe­lines that de­liver Bonny Light crude to the ex­port ter­mi­nal.

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