Nigeria’s crude oil production averaged 1.186 million barrels per day (mbpd) in November, representing an increase of 172 thousand barrels per day from the 1.014 mbpd recorded in October, Organisation of the Petroleum Exporting Countries (OPEC) has said.
This is contained in the OPEC Monthly Oil Market Report for December, released on Tuesday by the oil cartel.
According to the report, Nigeria’s economy expanded by 2.3 percent year-on-year in the third quarter of 2022, decelerating from the growth of 3.5 percent year-on-year in the second quarter of 2022.
“This marks the eighth consecutive quarter of growth, yet the slowest rate since 1Q21. Moreover, economic conditions are challenged by the factors such as natural disasters that have hampered productivity.
“The non-oil sector has been the key growth engine but expanded at a slower pace of 4.3 percent y-o-y in Q3 2022 compared with 4.8 percent in Q2 2022. The Q4 2022 data indicates a sharp rise in inflation accompanied by higher interest rates, slowing private sector momentum and a slowdown in household consumption.
“The inflation rate accelerated to its highest level in 17 years in October as localized food, and fuel shortages increased the headline inflation rate to 21.1 percent y-o-y from 20.8 percent y-o-y in September. Yet, on a monthly basis, CPI inflation eased to 1.2 percent m-o-m in October from 1.4 percent m-o-m in September. The Stanbic IBTC Bank’s total economy PMI rose to 54.3 in November from 53.6 in October, recording the fastest expansion in private sector activity since April 2022,” OPEC said.
Nigeria’s crude oil production, which was about 2.2 mbpd in 2019, suffered a rapid drop in the first quarter of 2020, a development that was attributed to the outbreak of Covid-19 pandemic and vandalisation of pipelines, leading to shut-ins, as well as oil theft in the Niger Delta region.
One of the major challenges facing oil and gas companies in the country is oil theft. Losses as of 2019 was in the region of 30 percent.
However, oil theft in the Niger Delta took a new dimension sometimes this year, with losses averaging 80-90 percent, forcing companies to declare force majeure.
Some months ago, Shell and Eni declared force majeure on their export terminals as a result of vandalisation of their pipelines by oil thieves.
The country’s crude oil production averaged 1.183 mbpd in July, according to OPEC in its Monthly Oil Market Report for August 2022. The figure represents an increase of 7,000 barrels per day when compared with 1.176mbpd average production in the month of June.
In August, the country’s crude oil production maintained its dropping streak, to average 1.100 mbpd. OPEC said that the figure represents a decrease of 64,000 barrels per day when compared with 1.183mbpd average production in the month of July.
It was worse in September, as the country’s crude oil output was just 938,000 bpd, while total liquids production averaged 1.14 mbpd.
To address the problem of oil theft in the Niger Delta region, the Federal Government, through the Nigerian National Petroleum Company Limited, few months ago awarded pipeline surveillance contract to an ex Niger Delta militant, Government Ekpemupolo, otherwise known as Tompolo.
Tompolo’s security outfit, Tantita Security Services Nigeria Limited (TSSNL), has uncovered several illegal pipelines in recent weeks, which has reduced theft and led to increase in production.
Speaking at the recently concluded Practical Nigerian Content (PNC), which held in Uyo, Akwa Ibom State, the Group Chief Executive Officer of NNPC Limited, Mele Kyari, said the country’s crude oil production is currently about 1.5 mbpd.