EnergyDay gathered that August output level is the lowest since 1990. This therefore showed a decline of about 854,000bpd from the country’ 1.826 mb/d OPEC’s approved oil production quota for August, 2022.
According to secondary sources, total OPEC-13 crude oil production averaged 29.65 mb/d in August 2022, higher by 618 tb/d m-o-m. Crude oil output decreased in Nigeria while it increased mainly in Libya and Saudi Arabia.
Mr. Mele Kyari, Group Chief Executive Officer(GCEO) NNPC Ltd has earlier attributed the country’s declining crude production to rigs and terminal shut-ins of about 700,000 barrels per day. He blamed it on persistent pipeline vandalism, oil theft, and illegal refining in the Niger Delta.
EnergyDay gathered that operations in all the major producing wells, flow stations, and terminals across the country including Bonny Terminal Network, QUA IBOE terminal, Forcados Terminal Network, and Brass Terminal Network have been shut in and deferred due to depreciating upstream infrastructure and sabotage.
The number of functional crude oil production rigs in Nigeria reduced to just 10 operational rigs in August 2022, from 11 rigs recorded in July 2022(1Q22). EnergyDay gathered that the country’s operational rigs are still struggling to increase since 2019 when it recorded 16 functional rigs.
OPEC said that Nigeria’s annual inflation rate surged to the highest since September 2005, climbing to 19.6% y-o-y in July from 18.6% in June. The organisation warned that Nigeria’s economy might keep be impacted by the high level of employment associated with elevated prices levels.
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 a detailed analysis of key developments impacting oil market trends in world oil demand, supply as well as the oil market balance.