Nigeria’s crude oil production saw a modest recovery in April, reaching a two-month high, but still fell short of the country’s target set by the Organization of the Petroleum Exporting Countries (OPEC). According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country pumped an average of 1.486 million barrels per day (bpd) in April, a slight increase from 1.401 million bpd in March. Despite this improvement, the output remained below the OPEC quota of 1.5 million bpd allocated for the same period.
The increase in production from March to April marks Nigeria’s best performance since February. However, the country’s total output, including both crude oil and condensates, amounted to 1.683 million bpd. It’s important to note that while condensates contribute to total production, they are not included in OPEC’s official quota calculations for member states. Thus, despite the higher output, Nigeria’s performance still falls short of OPEC expectations in terms of crude oil alone.
NUPRC data further revealed that daily production in April ranged from a low of 1.60 million bpd to a high of 1.73 million bpd, with an average of 1.485 million bpd of crude and 197,607 bpd of condensate. This fluctuation in output has been a recurring trend throughout the year, with production levels varying between 1.539 million bpd in January, 1.465 million bpd in February, 1.401 million bpd in March, and the latest figure of 1.486 million bpd in April.
In February, Nigerian authorities, led by President Bola Tinubu’s Special Adviser on Energy, Olu Verheijen, set an ambitious target to increase the country’s daily oil production to 2.7 million bpd by 2027. This target includes both crude oil and condensate, though condensate does not count toward OPEC’s production quotas. Verheijen emphasized that the country’s oil production strategy focuses on both crude and condensate, despite OPEC’s focus solely on crude oil.
The performance of Nigeria’s oil sector continues to be a matter of interest for global markets, particularly as the broader economic environment remains volatile. Oil prices have recently seen a drop of 4% amidst trade tensions between the U.S. and China, and market sell-offs. As Nigeria works to meet its ambitious oil production targets, fluctuations in both global market conditions and domestic production continue to play a significant role in shaping its energy landscape.
Source: Business Day