Crude rises to $83 as Nigeria’s output crosses 1.4mbpd

Brent, the global benchmark for crude, rose to $83.19/barrel on Tuesday evening, moving up by $1.19 when compared to its cost the preceding day, as latest data from the Federal Government indicated that Nigeria’s oil output increased to 1,426,574 barrels/day in January 2024.The marginal gain in crude oil price coupled with the increase in Nigeria’s output would lead to more foreign exchange earnings for the country. Crude oil sales is the major foreign exchange earner for Nigeria.

In its latest crude oil and condensate production data, the Nigerian Upstream Petroleum Regulatory Commission, an agency of the Federal Government, stated that Nigeria’s output rose by 91,476bpd in January 2024, when compared to the production figure of 1,335,098bpd in December 2023.Figures from the NUPRC showed that with the addition of condensate, Nigeria’s oil production rose to 1.64 million barrels/day in January 2024, up from the 1.55 million barrels/day recorded in December 2023.

The Federal Government has been making concerted efforts to increase Nigeria’s oil production, reduce pipeline vandalism and meet the oil production quota approved for the country by the Organisation of Petroleum Exporting Countries.This was buttressed on Tuesday by the Chief Executive of NUPRC, Gbenga Komolafe, who stated that the commission had adopted measures to tackle challenges facing the oil and gas sector and boost oil production.He disclosed this in Lagos while presenting a country address at the Petroleum Technology Association of Nigeria Sub-Saharan Africa International Petroleum Exhibition and Conference.

In his speech, which was made available to journalists in Abuja, Komolafe said Nigeria’s oil production currently averages 1.586 million barrels/day, adding that this consists of 1.33mbpd liquid production and 256,000 condensate oil production.

He explained that some of the measures adopted by the commission include improved transparency in hydrocarbon measurement and accounting, collaborative work programme administration with the exploration and production companies, and close monitoring to ensure that they meet their work programme obligations.Others include acceleration of field developments through timely approvals and ensuring speedy execution, production optimisation by ensuring wells were tested periodically and produced at optimal rates, identifying candidate wells for work-over and interventions, as well as the adoption of enhanced oil recovery processes and technologies.

Meanwhile, Komolafe observed that the global energy landscape was currently undergoing rapid changes in response to climate concerns, stressing that the oil and gas industry was experiencing crucial changes that would have significant bearing on the global energy future.“The agenda for Nigeria and other resource rich developing economies is that the evolving energy dynamics must be calibrated to ensure energy justice, equity, inclusivity, and sustainability.

“The new dynamics in the global energy arena necessitate that Nigeria and other countries, long dependent on the exploitation of oil and gas as the mainstay of their economies, re-examine their strategy to secure a blossoming energy future while meeting the global climate goals,” the NUPRC boss stated.He, however, noted that aside from hydrocarbon resources, “Nigeria is blessed with potentials for green and blue hydrogen, solar, wind, biomass and critical minerals for development of clean energy technologies as well as growing population predominated by young people.

“With a coastline along the Gulf of Guinea, a market size of more than 200 million people projected to reach between 390 million and 440 million people in 2050, Nigeria represents hope for Africa.He told his audience that the intention of Nigeria was to leverage its huge natural gas reserve to power its energy transition plan and grow its economy.