BREAKING: Fresh Worry For Tinubu As Nigeria’s Oil Production Falls By 15.5% (DETAILS)

BREAKING: Fresh Worry For Tinubu As Nigeria’s Oil Production Falls By 15.5% (DETAILS)

Oil production in Nigeria declined by 15.5% in July compared to June, marking the third consecutive monthly drop since April, as reported by the local upstream regulator’s data.

Last month’s oil production in the African OPEC member reached 1,081,396 barrels per day (bpd), down from June’s 1,248,960 bpd, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) cited by local media.

Nigeria has consistently fallen short of its production quota in the OPEC+ agreement.

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Factors such as pipeline vandalism, oil theft, insufficient investment in capacity, and insecurity have contributed to Nigeria being the weakest performer in crude oil production within the OPEC+ alliance.

Persistent issues of oil theft and pipeline damage have affected Nigeria’s upstream oil and gas sector, causing disruptions and often leading to force majeure declarations at critical crude oil export terminals.

Nigeria’s current oil production falls approximately 1 million bpd below its capacity. The government attributes this situation to challenges such as a lack of investments, funding difficulties due to the energy transition, and security concerns.

Gbenga Komolafe, CEO of the NUPRC, mentioned in May that Nigeria’s technical allowable capacity for oil production is around 2.5 million bpd. However, due to the mentioned challenges, actual production currently hovers at approximately 1.5 million bpd.

Nigeria aims to substantially raise its oil production to potentially 1.7 million bpd by November 2023, with the goal of securing a larger quota within the OPEC+ agreement. Gabriel Tanimu Aduda, Permanent Secretary at Nigeria’s Ministry of Petroleum Resources, conveyed this ambition to Energy Intelligence in the previous month.

Nigeria’s original production quota was 1.742 million bpd earlier this year. However, due to its consistent underproduction by over 400,000 bpd, Nigeria’s output limit was revised to 1.38 million bpd during the OPEC+ meeting in early June.

Nigeria’s NUPRC is planning to organize an international roadshow in the upcoming weeks to attract investments in its upstream sector.