The Organisation of Petroleum Exporting Countries (OPEC) in its Monthly Oil Market Report (MOMR) for June, 2022, released on Tuesday, showed that Nigeria’s crude oil production declined by an average of 199,000 barrel per day in May 2022 to 1.024million barrels per day (mbpd) based on direct source and 1.262mbpd( secondary sources to OPEC) from April 1.219mbpd(direct source) and 1,306mbpd(secondary source).
This huge decline in crude oil production for the period under review has impacted the country’s inability to meet its OPEC approved oil production quota since this year.
The number of functional crude oil production rigs in Nigeria increased by 37.5 per cent to just 11 operational rigs in May 2022, from 8 rigs recorded in the first quarter,2022(1Q22). This was revealed by OPEC on MOMR for June.
EnergyDay’s check revealed that the crude oil rigs or oil and/or gas production platform is a large structure with facilities to extract, and process petroleum and natural gas that lie in rock formations beneath the seabed.
Data showed a marginal increase of Nigeria’s operational oil rigs from 8 in 1Q22 to 11 in April and remained like that in May. Despite this development the country is still struggling since 2019 when it recorded 16 functional rigs.
EnergyDay’s check showed that Nigeria’s rigs dropped to as low as five(50) in the 2Q, 2021, before picking up seven in the 4Q, 2022 fourth quarter.
Out of all the oil producing countries, Iran had maintained 117 rigs since 2019 till date.
The OPEC data showed that Saudi Arabia, Algeria, and the United Arab Emirates, for instance, also dropped from 115 to 78, 65 to 34 and 62 to 48, respectively between 2019 and May 2022.
According to secondary sources, total OPEC-13 crude oil production averaged 28.51 mb/d in May 2022, lower by 176 tb/d m-o-m. Crude oil output increased mainly in Saudi Arabia, the UAE and Kuwait, while production in Libya, Nigeria, Iraq, Gabon and IR Iran declined.
.The OPEC Monthly Oil Market Report (MOMR) covers major issues affecting the world oil market and provides an outlook for crude oil market developments for the coming year. The report provided detailed analysis of key developments impacting oil market trends in world oil demand, supply as well as the oil market balance.
The report noted that Nigeria’s average production in 2020, 2021 and 2021( first Quarter 2022) was 1,575mbpd, 1,372mbpd and 1,382mbpd respectively.
OPEC in data obtained by direct communication from Nigeria showed that the country in January 2022 produced 1,399mbpd, in February production averaged 1,258mbpd, March 2022, production was 1.238mbpd, April was 1,219mbpd and May was 1.024mbpd.
The report claimed the country’s crude production from OPEC’s secondary sources.
for January, February, March, April and May 2022 stood at 1,413 mbpd, 1,378Mbpd, 1,354mbpd , 1,306mbpd, and 1,262mbpd respectively.
On the freight side , the report disclosed that vessel movement from Nigeria and other West African countries to East spot rates dropped 23% m-o-m to average WS44 in May. Compared with the same month last year, rates were 22% higher.