Nigeria’s crude oil production fell by 38,102 barrels per day in March, amounting to a total loss of around 1,181,162 barrels for the month under review. This was the country’s first decline in oil output in the previous seven months.
According to statistics from the sector that was obtained in Abuja on Monday, Nigeria’s oil output has increased since September 2022 as a result of coordinated efforts by the Federal Government and industry stakeholders to reduce oil theft.
However, the increase in oil production was not maintained in March, as evidenced by the latest data from the Nigeria Upstream Petroleum Regulatory Commission, which showed that while the nation produced 1,306,304 barrels of crude per day in February, that number fell to 1,268,202 barrels per day in March.
Inferring that Nigeria lost a total of 1,181,162 barrels of petroleum in March, this showed a daily decline of 38,102 barrels.
Data from Country Economy, a major statistical organization, revealed that the average price of Brent, the world’s standard for oil, in March 2023 was $78.43/barrel.
Because of this, Nigeria lost 1,181,162 barrels in March, which amounted to a loss of $92,638,535.66 (or N42.71 billion at the official currency rate of N461/$) for the entire review period.
In September 2022, Nigeria produced 0.937 million fewer barrels of oil per day than it had previously. This was attributed by the federal government and oil industry participants to widespread petroleum theft in Nigeria’s oil-rich Niger Delta.
Huge financial losses were also experienced by the government, foreign oil firms working in Nigeria, and local business owners in the sector.
However, after September, as a result of coordinated efforts by security officials and oil operators, the nation’s oil output began to improve, as industry data revealed that crude production increased to 1.014 million barrels per day in October.
When compared to the 0.937mbpd output in September, this showed an increase of 0.077mbpd. When compared to October’s output, the nation produced 1.185 million barrels per day (mbpd) more crude in November.
Nigeria continued to boost its output in December of last year, producing 1.253 mbpd in that month, up 0.05 mbpd from its output in November.
About 23,000 bpd more crude oil was produced in January 2023 than in December 2022, when 1.235 mbpd was produced.
With a production of 1.31 mbpd in February, the momentum was maintained. However, in March, the amount fell to 1.27 mbpd, ending the seven-month streak in Nigeria’s oil production.
The nation aims to fulfill the 1.8 mbpd quota that the Organization of Petroleum Exporting Countries granted it. The majority of Nigeria’s foreign currency earnings come from the selling of crude oil and gas.
Since last year, the Federal Government has increased its efforts to support Nigeria’s crude oil output and lower theft by thieves and vandals.
“Admittedly, one major area of value erosion in the industry is the menace of crude oil theft. Our records indicate that the menace of oil theft has negatively impacted the oil and gas sector for about two decades with attendant huge financial losses to our nation,” the Chief Executive, NUPRC, Gbenga Komolafe, stated recently.
He claimed that the commission had been successful in halting the depreciation of hydrocarbon values through cooperation with the various security agencies, the Nigerian National Petroleum Company Limited, and the host communities.
“Now, our nation has continued to record good dividends of these collaborative efforts as production figures are progressively increasing. The January 2023 volume is approximately 1.5 million barrels per day of oil and condensates.
“It is expected that this number will continue to increase as further measures are introduced and sustained to remove all illegal connections that aid crude oil theft,” the NUPRC boss stated.
