Nigeria’s crude oil production experienced a slight decline in October 2024, dropping from 1.54 million barrels per day (bpd) to 1.53 million bpd.
This is according to the latest monthly oil production status report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and obtained by Nairametrics.
Unlike the OPEC report, which focuses solely on crude oil production excluding condensates, the NUPRC report provides a comprehensive view, including both blended and unblended condensates.
The data shows a marginal increase in crude oil production to 1.33 million bpd in October from 1.32 million bpd in September, aligning with OPEC’s primary source data reported by Nairametrics last two weeks.
Moreover, the NUPRC report highlights an increase in blended condensates to 44,134 bpd, while unblended condensates declined to 160,672 bpd during the same period.
In total, Nigeria’s crude oil production, including condensates, stood at 1,538,129 bpd in October 2024.
What are Condensates
Condensate in crude oil refers to a light hydrocarbon liquid that is typically produced alongside natural gas. When crude oil and natural gas are extracted from underground reservoirs, the hydrocarbons may exist in a gaseous state due to the high temperature and pressure within the reservoir.
- However, as the temperature and pressure decrease during extraction and as they reach the surface, some of these hydrocarbons condense into a liquid form, which is known as condensate.
- In certain situations, condensate can be blended with heavier crude oil to enhance its flow properties. This process helps reduce the viscosity of the oil, making it easier to transport through pipelines and other infrastructure.
- Additionally, condensates are valuable in the energy and petrochemical industries due to their high content of light hydrocarbons, such as ethane, propane, and butane.
These components are essential feedstocks for producing a range of products, including plastics, chemicals, and fuels, making condensate an important resource in global energy markets.
What you should know
The oil sector continues to grapple with challenges stemming from insecurity and low investment, further aggravated by the departure of international oil companies (IOCs) and lingering disputes over the approval of oil asset transfers.
- The Nigerian National Petroleum Corporation (NNPC) Limited has announced renewed efforts to address the obstacles hampering crude oil production, which has remained stagnant over the past five months.
- NNPC also claimed to have achieved a production level of 1.8 million barrels per day in November. However, this assertion appears questionable, as most available data do not indicate any significant upward trend in crude production so far.
The November production figures, set to be released in the middle of next month, will either validate or refute the claims made by the national oil company.
