The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says oil output dropped to an average of 1,268,202 barrels per day (bpd) in March 2022.
The production figure indicates a decrease by 2.92 percent or 48,154 bpd, compared to February when output was 1,306,304 bpd.
The data is contained in the latest crude oil and condensate production report of the NUPRC.
This is the first crude oil output decline in 6 months.
Nigeria’s oil production had continued to rise from September 2022 to February 2023, before the recent decline in March.
NUPRC, in the report, said with the addition of condensate, oil production totalled 1.517 million bpd in March 2023, increasing from the 1.547 million recorded in February 2023.
Condensate is a mixture of light liquid hydrocarbons, similar to a light (high API) crude oil. It is usually separated from a natural gas stream at the point of production (field separation) when the temperature and pressure of the gas are dropped to atmospheric conditions.
In 2022, oil theft, operational issues as well and a lack of investment, hampered optimal oil production.
But due to concerted efforts by stakeholders, the nation was able to shore up its output levels.
“In our case, we have a different challenge other than just a lack of investment in the last four to five years. There has been no investment in the last four to five years. That is correct. That is true in many other jurisdictions where cash flows do not support the investment,” Mele Kyari, group chief executive officer (GCEO) of the Nigerian National Petroleum Company Limited, had said.
“In our case, we had a different challenge – security challenge – that became very manifest early-2022. And of course, we took definite steps to bring back production and this is paying up.”
Meanwhile, the latest decline may not be unconnected to an explosion that rocked a crude oil tapping point in Rumuekpe community in Emuoha local government area of Rivers state.
12 persons died in the fire incident, which occurred on the Trans-Niger Delta Pipeline (TNP) that passed through the community.
Last week, some member countries of the Organisation of Petroleum Exporting Countries (OPEC), excluding Nigeria, announced plans to cut production, bringing additional voluntary production adjustments by the countries to 1.66 million bpd.
Source: https://www.thecable.ng/