Nigeria: Oil Production Dwindles to 1m Barrels Per Day

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Nigeria’s total crude production has declined with output minus condensate output crumbling to about one million barrels daily, following a recent data by the Organisation of Petroleum Exporting Countries (OPEC

Output from Africa’s largest oil producer had fallen to 1.65 million barrels per day (bpd) from 2.2 million bpd, due to militant attacks, Finance Minister, Kemi Adeosun, earlier said.

OPEC also released its monthly production report at the weekend, showing that Angola remained, Africa’s biggest crude producer, since last February that it took over the status from Nigeria.

Generally, the cartel, the data showed, pumped 32.44 million barrels per day (bpd) in April.

It said in a monthly report citing secondary sources, that its production, despite dip in Nigeria’s output, was up 188,000 bpd from March; the highest since at least 2008, according to a review of past OPEC reports.

The group indicated that the global oil glut might increase this year, as surging output from its members makes up for losses from other countries whose production have been hit by low prices.

“This is the latest setback for Africa’s second top producer that has pushed output to its lowest in more than two decades,” traders said.

Crude prices were also affected; investors were locked in profits, as oil headed for its fifth week of gains in the last six weeks and ahead of a long weekend in several countries in Europe, including Germany and France.

The data also revealed followed attacks and mechanical leakages on oil installations and facilities in the country, the latest of which was the damage to a pipeline operated by Exxon Mobil at the weekend, reducing supplies of Nigeria’s benchmark Qua Iboe crude oil. The country was set to export 317,000 bpd of Qua Iboe in June.

Nigeria’s production has slumped to a 22-year low after Royal Dutch Shell PLC declared a force majeure on Bonny Light crude due to sabotage on a pipeline.

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