Despite efforts by the federal government to increase oil production, the nation’s output, excluding condensate, dropped month-on-month, MoM, by seven per cent to 1.3 million barrels per day, bpd in February 2024, from 1.4 million bpd in January 2024.
Organisation of Petroleum Exporting Countries, OPEC, disclosed this in its March Monthly Oil Market Report, MOMR.
But on year-on-year, YoY, the nation’s output remains flat as a similarly 1.3 million bpd was also recorded in the corresponding period of 2023.
However, the OPEC report showed that Nigeria remains the highest African oil producing country while Equatorial Guinea lags behind with 47,000 bpd.
An expert, who pleaded anonymity, said Nigeria’s total output could be in excess of 1.6 million bpd as the nation has the capacity to produce between 300,000 and 400,000 bpd of condensate, a light crude that attract equally high price like Bonny Light in the international market.
This means that the situation would not impact negatively on the 2024 budget which was based on 1.78 million bpd and $78 per barrel respectively.
Nigeria’s oil output had risen MoM to 1.43 million bpd in January 2024, from 1.34 million bpd recorded in December 2023, indicating an increase of 6.9 per cent.
But YoY, the nation’s output rose by 15.6 per cent to 1.43 million bpd in January 2024, from 1.23 million bpd recorded in the corresponding period of 2023.
The output excluded condensate, a light crude, which Nigeria has the capacity to produce between 300,000 bpd and 400,000 bpd, according to the Monthly Oil Market Reports, MOMRs of the Organisation of Petroleum Exporting Countries, OPEC, obtained by Vanguard.
The increase in output was then attributed to some factors, especially the nation’s successful battle against oil theft, thus making Nigeria the highest African producer while Equatorial Guinea comes last with 54,000 bpd.
