FG, OPEC Disagree Over Crude Oil Production In Nigeria
The average daily crude oil production in Nigeria has become a point of contention between the Federal Government and the Organisation of Petroleum Exporting Countries (OPEC).
Earlier, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the country’s oil production has risen to 1.65 million barrels per day (bpd).
However, OPEC has reported that Nigeria’s production stood at 1.32 million bpd in February 2024.
During a podcast hosted by Bruit Costaud in collaboration with Ballard Partners of USA, Edun spoke in Abuja yesterday and emphasized that Nigeria’s oil production had increased from 1.25 million bpd in June
2023 to the current figure of 1.65 million bpd. He said: “The prices are still elevated and as you know in June 2023, the oil production and sales were roughly 1.25 million barrels per day.
“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary.”
In its latest monthly oil market report, OPEC announced that Nigeria experienced a decline in its average daily crude oil production for February. The country’s output dropped to 1.32 million barrels per day (bpd),
representing a decrease of 105,000 bpd or 7.36 per cent compared to January’s figure of 1.42 million bpd.
OPEC clarified that the production data was obtained through direct communication with Nigerian authorities. The organization collects information on crude oil production from two sources: direct
communication with its member countries and secondary communication from energy intelligence platforms. Despite the decrease in production, Nigeria remains the largest oil producer in Africa due to its current
drilling performance.
According to OPEC, Libya is Africa’s second-largest producer, with a daily output of 1.17 million barrels, followed by Algeria with 906,000 bpd. However, secondary sources within OPEC reported Nigeria’s crude
production to be 1.476 million bpd, indicating a 3.29 percent increase from the oil cartel’s own figure of 1.429 million bpd reported in January. “According to secondary sources, total OPEC-12 crude oil
production averaged 26.57 mb/d in February 2024, 203 tb/d higher, mo- m. Crude oil output increased mainly in Libya and Nigeria, while production in IR Iran and Iraq decreased,” the report reads.
