OPEC Disagree With Nigeria’s Claim Of Oil Output At 1.8mbp, Estimates Oil Output At 1.4mbpd

The Organisation of Petroleum Exporting Countries, OPEC, has faulted Nigeria’s oil output pegged at 1.8 million barrels per day in October.

The organisation noted on Thursday that the real oil output of Nigeria, excluding condensate, was 1.434 million barrels per day, in October 2024.

Condensate is a substance formed by condensation, such as a liquid from a vapour.

OPEC revealed that the actual condensate output is in the average of 250bpd stressing that when factored into Nigeria’s claimed oil output, according to the federal government, would yield 1.55mbpd during the month under consideration.

But in its November 2024 Monthly Oil Market Report, MOMR, OPEC, on Thursday, maintained that the information was based on data obtained from secondary sources.

According to OPEC, when data from direct sources were considered, the nation’s real output, excluding condensate, in October was 1.333 million bpd.

This indicates a marginal increase of 0.6 per cent, from 1.324 million bpd, recorded in September 2024.

But this also indicates about 226,000 bpd gap compared to FG’s figure. However, OPEC said Nigeria has continued to be the highest African producer with 1.434 million bpd output while Sudan emerged the least with 28,000 bpd.

OPEC maintained that increased oil production in Nigeria, Libya and Congo culminated in its higher output during the period under consideration.

Speaking in a related development, at the just-concluded Nigerian Association of Petroleum Explorationists, NAPE, the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, in a paper entitled “Resolving the Nigerian Energy Trilemma: Energy Security, Sustained Growth, and Affordability,” identified the “alarming scale of pipeline vandalism and theft of crude oil” as the biggest threats to Nigeria’s energy security, noting that major oil and gas projects are required as well as a robust security strategy based on mutually beneficial collaboration with host communities.

He said to achieve the above objectives, the Board has undertaken to work with stakeholders in the industry to dedicate one week in every calendar year to signing Final Investment Decisions (FIDs) on new projects, as prospective investors could be motivated to act expeditiously to meet agreed-upon deadlines and regulators are similarly encouraged.

Engr. Ogbe noted that FDIs would “catalyze new projects in the Nigerian oil and gas industry,” and that fruitful collaboration amongst stakeholders and NCDMB would actualize the intentions of the Presidential Directives rolled out in March 2024 by The Presidency, and thus “fast-track the contracting cycle and incentivize investments in our sector.”

The Nigerian National Petroleum Company Limited (NNPCL) had on Thursday, announced an increase in crude oil production from 1.43 million barrels per day(bpd) to 1.8m barrels per day (bpd) within a space of three months.
The announcement was made by the company’s Group Chief Executive Officer, Mele Kyari, during a meeting held at the Oil Production Room at the NNPC Headquarters in Abuja.

Kyari described the achievement as “monumental” adding that the company is expecting more landmark accomplishments.
(New Diplomat)