UBA ads

On Wednesday, the Organisation of Petroleum Exporting Countries (OPEC) released its monthly oil market report for December which showed that Nigeria’s oil production dipped to a new low extending 3 months of consecutive decline. Specifically, Nigeria’s daily crude production (excluding condensates) for December 2019 fell to 1.57mb/d from 1.66mb/d in November 2019.

Furthermore, Nigeria’s average daily production (excluding condensates) in 2019 came to 1.73mb/d. Adding condensates production which the Department of Petroleum Resources (DPR) pegged at between 414,000 – 497,000 b/d (IEA estimates 220,000 – 250,000 b/d) brings total average production in 2019 to roughly 2.2mb/d in line with Mele Kyari’s declaration at the Atlantic Council Global Energy Forum.

NNPC, Chinese firm conclude plans to commence AKK project , NNPC refineries dormant for three months, post losses for 13 straight months, Atlantic Council Global Energy Forum
Mele Kyari, GMD, NNPC

Nigeria’s oil production quota was previously placed at 1.69mb/d which was not complied with. However, following consultations with the cartel in October 2019, the production quota was lifted to 1.77mb/d.

In recent times, however, the country’s production has been below quota. NNPC boss, Mele Kyari has since declared the country is directing its upstream efforts at improving natural gas liquids and natural gas to better comply with OPEC’s quota since OPEC’s quota excludes production of NGLs.

Crude Oil: Nigeria’s oil production slips for the third consecutive month 

Zimvest

We think Nigeria’s decision to comply with its OPEC+ quota bodes positively for the global oil market without necessarily hurting local targets.

The 2020 budget assumption of 2.18mbd oil production now looks achievable provided condensates production in line with DPR estimates can be maintained.

However, concern remains how Nigeria can exploit its rich deposits of NGLs given dearth of adequate technological infrastructure.

Standard chartered

[READ MORE: Now that President Buhari has signed the Finance Bill into law)

________________________________________________________________________

Standard chartered

CSL STOCKBROKERS LIMITED CSL Stockbrokers,

app

Member of the Nigerian Stock Exchange,

First City Plaza, 44 Marina,

PO Box 9117,

Lagos State,

app

NIGERIA.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.