Nigeria’s crude oil production volume hits 1.35mbpd, shoots OPEC’s output to 28.97mbpd for February- Survey
Nigeria’s crude oil production volume was projected to have increased by 100,000 bpd for February 2023, thereby shooting up Organisation of Petroleum Exporting Countries (OPEC) crude oil production level to 28.97 million bpd average, translating to about 150,000 bpd more than it was in January.
This was revealed in a survey conducted by Reuters and obtained by EnergyDay on Wednesday.
Reuters claimed that its survey was based on shipping data, Petrologistics, and Kpler, along with information provided by OPEC and consultants. It added that the survey specifically aimed at tracking crude oil supply to the market.
Judging by the survey, Nigeria’s oil output was speculated to have hit 1,358 million barrels per day(bpd) from 1.258 mbpd recorded in January 2023.
EnergyDay’s check showed the return of Forcados and partial restoration of the Trans Niger Pipeline (TNP). Collaboration with the oil-producing communities played a significant role in the output gains.
Despite the level of recovery credited to the gains achieved through the intense clampdown on oil thieves and vandals, Africa’s largest producer is also struggling to meet its OPEC target crude oil production quota of 1.8 million barrels per day (bpd).
Mallam Mele Kyari, Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive GCEO) had recently boasted that Nigeria will achieve an average production volume of 2.2 mbpd in 2023.
The GCEO said, “Definitely, we can hit our target of 2.2 million barrels per day, but our budget target is 1.8 million bpd. There are construction works that we are doing on our pipelines that will aid our oil production.
Meanwhile, the Reuters’ survey showed that OPEC’s 28.97 mbpd production volume for February 2023, was still 700,000 bpd less than it was in September 2022.
OPEC+, responsible for producing around 40% of the world’s crude oil- has managed to raise its production targets in 2022, even as global demand increased but consistently failed to meet its monthly production targets.
EnergyDay gathered that the oil cartel had in September 2022, agreed to cut its production targets, effective in October 2022, by just 100,000 bpd out of about 3 million bpd at the period.
OPEC+, thereafter went on to tighten oil markets even further by making a drastic cut to its production targets by 2 million bpd, effective in November, after the oil prices fell from $120 Brent to less than $90 Brent in October last year.
The Reuters’ survey also showed that Iraq saw the second-largest increase in production, while Angola recorded a drop in crude oil production of about 80,000 bpd in the period under review.
OPEC’s Gulf producers Saudi Arabia, Kuwait and the United Arab Emirates maintained high compliance with their targets under the OPEC+ agreement, the survey found.
Libya, Iran and Venezuela are the three producers exempt from OPEC cuts. Iran posted higher exports in February and Venezuelan output has increased slightly, according to the survey. Libyan output was steady.