Crude Oil Production in Nigeria Drops by 9.65% to 40.12 Million bpd in July 2023
Written by Broadstreet Admin on August 24, 2023
In accordance with the August 2023 monthly oil market report from the Organization of the Petroleum Exporting Countries and Allies (OPEC+), the oil rig count rose significantly to 14 during Q1 2023, up from 8 rigs in Q1 2022. However, despite this increase, the total production of crude oil and condensates experienced a month-over-month decline of 9.65%, dropping to 40.12 million barrels from 44.40 million barrels in June 2023. Furthermore, on a year-over-year basis, production was down by 1.52%, with July 2023 seeing a total of 40.74 million barrels compared to July 2022.
Focusing on Nigeria, the nation’s average daily crude oil production in July 2023 was 1.29 million barrels per day (mbpd), indicating a decrease of 185,916 barrels compared to the average output of 1.48 mbpd in June 2023. This also represented a decline of 19,912 barrels from the reported 1.31 mbpd in July 2022.
The decline in oil production at the Forcado’s oil terminal was primarily due to repair maintenance activities. Consequently, the terminal experienced a substantial reduction of 4.61 million barrels in its total crude oil production for July 2023 (a decrease of 58.39% compared to June 2023), with output dropping to 3.29 million barrels from 7.90 million barrels.
Similarly, the Bonny terminal encountered a noteworthy decrease of 608,400 barrels in its total oil output, falling from 2.6 million barrels in July 2023 to 3.2 million barrels in June 2023.
Conversely, major oil terminals such as Escravos and Qua Iboe saw an increase in crude oil production, rising by 390,833 and 334,843 barrels to 4.87 million and 4.12 million barrels, respectively, in July 2023 compared to June 2023 (4.48 million and 3.79 million barrels, respectively).
At the Ugo Ocha (Jones Creek) oil terminal, which is among several smaller oil terminals that do not produce oil condensates, production surged by 361,927 barrels, reaching 624,645 barrels in July 2023 from 262,718 barrels in June 2023.
The persistently low oil production in Nigeria in recent years has adversely affected the country’s primary source of foreign exchange, exerting significant pressure on its foreign exchange reserves. This challenge is attributed primarily to crude oil theft, widespread pipeline vandalism in the Niger Delta, and a history of insufficient investments in the oil and gas sector.
Hopes were pinned on the renewal of the oil pipeline surveillance contract awarded to Chief Government Ekpemukpolo, the former leader of the Movement for the Emancipation of the Niger Delta (MEND), late last year. However, the production figures thus far have not displayed the anticipated improvement.
