Nigeria’s crude oil production dropped by about 4 per cent in July, ending months of steady growth, but the country still managed to produce slightly above its OPEC quota. Fresh data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that Nigeria produced an average of 1.505 million barrels of crude oil per day in July, compared with its OPEC quota of 1.5 million barrels per day.
The July figure represents a decline from the 1.735 million barrels per day recorded in June, meaning daily crude production fell by about 65,000 barrels. When condensate is added, Nigeria’s combined crude oil and condensate output stood at 1.67 million barrels per day during the month. Despite the decline, July marked the third consecutive month Nigeria produced above its OPEC target, offering some encouragement for the country’s oil-dependent economy.
According to the NUPRC, the decline was largely linked to operational challenges at the Erha and Akpo fields, which affected production during the month. However, production activities at other oil assets remained relatively stable, while operators continued efforts to limit the impact of the disruptions. The regulator said stakeholders are working to restore affected capacity and improve the reliability of oil-producing assets.
July was also the first monthly setback after production climbed steadily from the beginning of the year. Combined crude and condensate output rose from 1.459 million barrels per day in January to 1.483 million in February, 1.564 million in March, 1.663 million in April, 1.701 million in May and 1.735 million in June. Even with July’s decline, production remained about 14.5 per cent higher than January’s level.
For Nigeria, the performance remains significant because higher oil production can support government revenue, foreign exchange earnings and investment in the upstream sector. Forcados recorded the highest average output among the major streams listed by the NUPRC at 322.34 thousand barrels per day, followed by Bonny at 303.72 thousand barrels per day. With the government and industry stakeholders focused on fixing operational problems and restoring lost capacity, attention will now turn to whether Nigeria can reverse July’s decline and sustain production above its OPEC quota in the coming months.
source: punch
