Nigeria is expected to produce 1.3 million barrels of oil per day (bpd) in April 2022, according to the Organization of Petroleum Exporting Countries, or OPEC.
Compared to the 1.5 million bpd reported during the same period in 2021, this indicated a 13.3% reduction.
According to OPEC’s May 2022 Monthly Oil Market Report, MOMR, which Vanguard was able to get yesterday, Nigeria continues to be Africa’s largest producer despite the low output, while Equatorial Guinea produces the least, at 94,000 barrels per day.
Nigeria has the capacity to produce between 300,000 and 400,000 barrels per day of condensate, but the Nigerian National Petroleum Corporation, or NNPC, does not disclose whether actual output satisfies capacity.
As part of its efforts to achieve market stability, OPEC anticipates Nigeria will produce 1.773 million barrels per day in June 2022.
However, Dr. Diran Fawibe, the Chairman of International Energy Services, stated in an interview with Vanguard that Nigeria might not be able to reach the goal.
Because Nigeria will not be able to reach its quota, presumably due to an increase in pipeline vandalism, oil theft, and illegal refining in the Niger Delta, he stated: “The market might continue to record increased instability.”
The delay in passing the country’s Petroleum Industry Bill, or PIB, which is now an Act, has contributed to the oil and gas corporations’ lack of investment over time. As a result, several investments were made in other countries, which resulted in the low production capacity of the country.
The nation’s deteriorating infrastructure also had an effect on the industry. Nigeria still struggles to produce around 1.2 mbpd as opposed to 1.7 mbpd, which is different from the past when we were able to boost production to support OPEC whenever other countries faced issues. Our production capacity can only reach an average of 1.4 mbpd when condensate is added.
It is concerning that we have permitted this to reach this stage, and it is a serious dilemma for our country. A significant amount of crude oil from Nigeria is stolen and exported.
“We are aware of the horrific event that claimed more than 100 lives in the Niger Delta. It is really pitiful that Nigerian security forces have failed to stop this threat. This is a serious crisis. There is a large-scale conspiracy underway.
