Nigeria’s oil production slipped by four per cent month-on-month in July, highlighting fresh challenges for the country’s fragile production recovery even as output remained above its Organisation of the Petroleum Exporting Countries (OPEC) quota for the third consecutive month. Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that the country produced an average of 1.505 million barrels of crude oil per day, alongside 0.17 million barrels per day of condensate, bringing total production to 1.67 million barrels per day.
The drop was largely linked to operational problems at the Erha and Akpo oil fields, which put pressure on national production during the month. According to the NUPRC, disruptions at both fields significantly reduced output, although production from most other assets remained relatively stable. Operators, the regulator said, continued to introduce measures aimed at maintaining efficiency and limiting the impact of the challenges.
Despite the decline, Nigeria still managed to stay above its 1.5 million barrels per day OPEC quota for the third month in a row. Total crude and condensate production reached a high of 1.78 million barrels per day in July, while the lowest daily output was recorded at 1.57 million barrels per day. The figures suggest that while Nigeria’s oil sector is showing signs of recovery, production remains vulnerable to unexpected field disruptions and operational setbacks.
The situation is unfolding as global oil markets face another source of uncertainty from the Strait of Hormuz, a vital route for international energy shipments. Vessel traffic through the strategic waterway has fallen sharply amid rising geopolitical tensions in the Middle East. Kpler data cited by Reuters showed that only eight vessels passed through the Strait in either direction on Tuesday, below the recent 10-day average of 12 vessels. The route has historically carried roughly 20 million barrels of oil a day, making any prolonged disruption a major concern for global energy supplies.
For Nigeria, the developments underline the importance of maintaining stable domestic oil production while global supply routes face growing risks. With oil still playing a major role in government revenue and foreign exchange earnings, sustained production above the OPEC quota could provide some relief. However, continued problems at key fields, combined with uncertainty around the Strait of Hormuz, could keep the outlook for Nigeria’s oil sector and global crude markets under close watch.
source: The Guardian
