Nigeria’s Crude Oil Production Rises Slightly to 1.35mbpd in August — OPEC
Nigeria’s average daily crude oil production saw a slight increase in August, rising to 1.352 million barrels per day (bpd), according to the Organisation of the Petroleum Exporting Countries (OPEC). This represents a modest gain of 45,000 bpd from the 1.307 million bpd recorded in July, based on direct communication with Nigerian authorities.
However, data from secondary sources suggest an even higher production rate, estimating Nigeria’s August output at 1.448 million bpd, an increase of 57,000 bpd compared to July’s figure of 1.391 million bpd.
Despite this improvement, Nigeria’s average production of 1.35 million bpd for August indicates that the country has consistently failed to meet its OPEC production quota of 1.5 million bpd and its budget target of 1.78 million bpd over the first eight months of 2024. This shortfall continues to hinder the revenue mobilisation efforts of President Tinubu’s administration.
Heineken Lokpobiri, Nigeria’s Minister of Petroleum Resources (Oil), previously announced an ambitious goal of reaching two million barrels of daily production by next year. However, the feasibility of this target remains doubtful, with ongoing issues such as insecurity, low investment, the departure of International Oil Companies (IOCs), and delays in oil asset transfer approvals casting a shadow over the sector.
In July, the Nigerian National Petroleum Company (NNPC) Limited reiterated its commitment to tackling the challenges facing crude oil production in the country, as output has stagnated over the past five months. Speaking at the 23rd edition of the Nigeria Oil & Gas Conference and Exhibition (NOG Energy Week) in Abuja, NNPC’s Group Chief Executive Officer, Mele Kyari, vowed to take decisive action.
“We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners, and we will work together to improve the situation,” Kyari stated.
He noted that a detailed analysis of assets showed that Nigeria could easily produce two million barrels of crude oil per day without the need for new rigs. However, the major obstacle remains the industry’s slow response to challenges.
Kyari emphasised that the “war” would enable NNPC Ltd. and its partners to swiftly eliminate barriers to efficient production, such as procurement delays, which have long plagued the sector.
