The total crude oil production was reported to be down 9.65% m/m to 40.12m from 44.40m in June 2023 and down 1.52% y/y to 40.74mn in July 2022.
This is despite a significant increase in oil rig count to 14 in Q1 2023 from 8 in Q1 2022, according to the Organisation of the Petroleum Exporting Countries and Allies’s monthly oil market report for August 2023,
Nigeria’s total daily crude oil production averaged 1.29mbpd in July 2023, which was 19.912mbpd less than the 1.31mbpd reported in July 2022 and 185,916mbpd less than the average oil production output of 1.48mbpd in June 2023.
Another notable decrease came from the Bonny terminal, where its total oil output fell from 2.6 million barrels in July 2023 to 3.2 million barrels in June 2023, a decrease of 608,400 barrels.
However, significant oil ports like Escravos and Qua Iboe pumped more barrels of crude oil in July 2023 compared to June 2023, increasing by 390,833 and 334,843 respectively to 4.87 million and 4.12 million barrels.
The Ugo Ocha (Jones Creek) oil terminal, one of the numerous small oil terminals that do not pump oil condensates, increased production by 361,927 barrels to 624,645 barrels in July 2023 from 262,718 barrels in June 2023.
Nigeria’s oil production has remained low in recent years, making it difficult for the nation to rely on its primary source of foreign currency and placing tremendous strain on its foreign exchange.
The main causes of the problem have been identified as crude oil theft, extensive pipeline vandalism in the Niger Delta, and years of underinvestment in the oil and gas industry.
We had hoped that the extension of the contract for oil pipeline surveillance given to the former head of the Movement for the Emancipation of the Niger Delta, Chief Government Ekpemukpolo, late last year, would lead to increased crude oil production volumes this year, but the numbers thus far have not been promising.
