Despite the significant increase in the oil rig count to 14 in Q1 2023 from 8 rigs in Q1 2022 based on the August 2023 monthly oil market report by the Organization of the Petroleum Exporting Countries and Allies (OPEC+), the total crude oil production (crude oil and condensates) was down 9.65% m/m to 40.12m from 44.40m in June 2023 and down 1.52% y/y to 40.74mn compared with July 2022.
Specifically for Nigeria, the nation’s total daily crude oil production averaged 1.29mbpd in July 2023, 185,916 barrels lower than the average oil production output of 1.48mbpd in June 2023 and 19,912 barrels lower than the 1.31mbpd reported in July 2022.
Due to the repair maintenance of the Forcado’s oil terminal, the oil terminal witnessed the highest reduction of 4.61m barrels in its total crude oil production to 3.29m barrels in July 2023 (-58.39% m/m) from 7.90m barrels in June 2023.
Another significant drop came from Bonny terminal with a drop of 608,400 barrels in its total oil output from 2.6m barrels in July 2023 to 3.2m barrels in June 2023.
However, major oil terminals like Escravos and Qua Iboe pumped more barrels of crude oil, up by 390,833 and 334,843 to 4.87m and 4.12m barrels in July 2023 from 4.48m and 3.79m barrels in June 2023.
Production was ramped up by 361,927 barrels to 624,645 barrels in July 2023 from 262,718 barrels in June 2023 at the Ugo Ocha (Jones Creek) oil terminal which is one of the many small oil terminals that do not pump oil condensates.
Nigeria’s oil production has remained low in recent years, thereby hampering the country’s main source of foreign exchange and putting immense pressure on the country’s foreign exchange.
The challenge has been mainly attributed to crude oil theft and massive pipeline vandalism in the Niger Delta as well as years of low investment in the oil and gas sector.
We had been hopeful that renewal of the oil pipeline surveillance contract awarded to the former leader of the Movement for the Emancipation of the Niger Delta (MEND), Chief Government Ekpemukpolo late last year, will result in improved crude oil production volumes this year but the numbers so far have not been encouraging.
