Nigeria’s Oil Output Increases by 4% in April – OPEC Report

Confidence UbaniMay 14, 20241 Mins read193

Amidst global market fluctuations and internal challenges, Nigeria’s oil production grew, according to the latest reports from the Organisation of Petroleum Exporting Countries (OPEC).

OPEC’s recent disclosure indicates that Nigeria’s crude oil output, excluding condensate, reached 1.28 million barrels per day (bpd) in April 2024. This figure reflects a 4% increase from March 2024, as reported by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in its corresponding report. However, data from secondary sources suggests a slight decline to 1.35 million bpd. In January2024, OPEC reported a similar decrease in Nigeria’s oil production.

Despite efforts to combat pipeline vandalism, oil theft, and illegal refining, Nigeria’s output remains below its benchmarked level of 1.70 million bpd, as outlined in the nation’s 2024 budget. The budget projected an output of 1.70 million bpd, including condensate, with an oil price of $77.96 per barrel. The shortfall poses challenges to revenue projections and economic stability.

Moreover, the decline in production coincides with a drop in the price of Nigeria’s Bonny Light crude, falling from $90 to $83.51 per barrel in the global oil market. This trend shows the impact of supply dynamics on pricing, influenced by geopolitical factors and demand fluctuations.

Addressing concerns about illegal refining, Minister of State for Petroleum Resources, Mr Heineken Lokpobiri, urged collaboration between the government and communities to tackle the menace effectively.

The people are partly involved in getting crude oil for illegal refining. After the refining, they throw the rest into the river. By law, the Federal Government owns the water and land resources. So, everyone should join hands with the government to fight this menace.

No matter the proceeds gotten from the illegal refining, it cannot be enough for the people and communities. Those perpetrating the act should cease, he advised.

Read: Breaking: Bank Transfers Facing Delays Across Nigeria Due to Technical Glitch