Nigeria’s average daily crude oil production in the month of June rose marginally to 1.276 million barrels.
This represents an increase of just 25 thousand barrels daily from 1.251 million barrels p/d recorded in the previous month of May.
This is according to the Organisation of Petroleum Exporting Countries (OPEC) monthly oil market report for June 2024.
The data on Nigeria’s crude oil production presented above represents direct communication with authorities in Nigeria.
Using secondary sources, Nigeria’s daily average crude oil production in June stood at 1.362 million bpd- a decline of 10 thousand barrels when compared to the figure for the previous month of May which was 1.372 million bpd.
Despite the decline in production according to secondary sources, Nigeria retained its position as the largest oil producer in Africa closely trailed by Libya which produced 1.2 million bpd in June.
Production among OPEC+ countries and average crude oil prices
Russia dethroned the Kingdom of Saudi Arabia as the largest oil producer among the OPEC+ cartel with average daily production of 9.14 million while Saudi Arabia produced 8.93 million bpd.
Total crude oil production among members of the OPEC+ also called the DoC stood at 40.81 million barrels daily- a decline of 125 thousand barrels daily production compared to the previous month.
For OPEC members, total crude oil production declined by 80 thousand barrels to 26.57 million barrels daily when compared to the previous month’s figure of 26.65 million bpd.
According to the report, the OPEC Reference Basket (ORB) declined slightly by 37¢, or 0.4%, month-on-month, to an average of $83.22 per barrel in the reviewed month.
The ICE Brent front-month contract remained unchanged at $83.00 per barrel, while the NYMEX WTI front-month contract increased slightly by 8¢, or 0.1%, month-on-month, to an average of $78.70 per barrel.
When you should know
The 1.27 million barrels average crude oil production in June means that for the first half of 2024, Nigeria has consistently failed to meet its OPEC production quota of 1.5 million barrels daily and its budget target of 1.78 million bpd.
- The consistent failure to meet the set production quota impedes the revenue mobilisation drive of the President Tinubu administration. The Minister of Petroleum Resources, Heineken Lokpobiri had earlier stated that the country was targeting two million barrels of daily production from next year, but the how remains to be seen as the outlook seems bleak.
- The problems of insecurity and low investment continue to plague the oil sector coupled with the exits of IOCs and the lingering issues relating to the approval of the transfer of oil assets.
- Earlier this month, the NNPCL declared war on the challenges affecting crude oil production in Nigeria as production stagnated in the past five months.
