The decrease in oil production in February and March 2024 was brought on by problems with the Trans Niger Pipeline as well as maintenance tasks completed by a few national oil companies, according to State Petroleum Resources (Oil) Minister Senator Heineken Lokpobiri.
According to data on oil production for March that was made public by the Nigerian Upstream Regulatory Commission (NUPRC) yesterday, production decreased to 1.438 million barrels per day, which is less than the 1.539 million and 1.643 million barrels per day recorded in February and January, respectively.
This decline was seen for the second consecutive month. The condensate oil output is included in the figures. The output volume was far less than the budgeted 1.78 million barrels per day for 2024.
Nnemaka Okafor, Lokpobiri's media assistant, gave an assurance in a statement that steps were being done to "not only restore production to previous levels, but to also increase it" in response to the crisis.
The Minister is also happy to say that the concerns have been sufficiently addressed, and production is anticipated to resume at its previous levels in the next few days, according to the statement. He believes that Nigeria will soon resume producing its full capacity of oil and condensate, which was around 1.7 million barrels per day (bpd) prior to these events.
However, the Organization of Petroleum Exporting Countries, or OPEC, reports that Libya's oil production increased by 5.4% to 1.236 million barrels per day in March 2024 from 1.173 million barrels per day in February 2024.
The output was based on data that OPEC, a permanent intergovernmental organization of 12 oil-exporting developing nations, obtained from official sources in Nigeria. OPEC disclosed this in its April 2024 Monthly Oil Market Report, or MOMR, which Vanguard was able to obtain.
However, OPEC said, citing secondary sources, that Nigeria continued to lead the continent in production throughout the period, generating 1.398 million barrels per day compared to Libya's 1.161 million barrels per day.
OPEC, however, declared: "Secondary sources indicate that the overall output of crude oil in OPEC-12 was 26.60 mb/d on average in March 2024—a 3 tb/d increase, month over month. While production declined in Nigeria, Iraq, and Venezuela, crude oil output rose mostly in IR Iran, Saudi Arabia, Gabon, and Kuwait.
While this is going on, the Federal Government has voiced worries about the industry's ability to fulfill its domestic crude responsibilities to nearby refineries, stressing the importance of continuing to provide local refineries with crude.
During a meeting to review the Domestic Crude Oil Supply Obligation under Section 109 (2) of the Petroleum Industry Act, PIA 2021, Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, stressed that local refineries' crude supply has to come first.
Komolafe noted that the government's main goal was to make sure Nigeria turned into a net exporter of refined petroleum products.
In order for us as a country to take advantage of the chance to buck the negative trend and become a net exporter of petroleum products, producers should ensure that their domestic crude oil supply is met by domestic refineries, particularly at this time when we are attempting to remove the subsidy regime. The only way to maintain that is to strengthen our ability to refine petroleum domestically.
According to data on oil production for March that was made public by the Nigerian Upstream Regulatory Commission (NUPRC) yesterday, production decreased to 1.438 million barrels per day, which is less than the 1.539 million and 1.643 million barrels per day recorded in February and January, respectively.
This decline was seen for the second consecutive month. The condensate oil output is included in the figures. The output volume was far less than the budgeted 1.78 million barrels per day for 2024.
Nnemaka Okafor, Lokpobiri's media assistant, gave an assurance in a statement that steps were being done to "not only restore production to previous levels, but to also increase it" in response to the crisis.
The Minister is also happy to say that the concerns have been sufficiently addressed, and production is anticipated to resume at its previous levels in the next few days, according to the statement. He believes that Nigeria will soon resume producing its full capacity of oil and condensate, which was around 1.7 million barrels per day (bpd) prior to these events.
However, the Organization of Petroleum Exporting Countries, or OPEC, reports that Libya's oil production increased by 5.4% to 1.236 million barrels per day in March 2024 from 1.173 million barrels per day in February 2024.
The output was based on data that OPEC, a permanent intergovernmental organization of 12 oil-exporting developing nations, obtained from official sources in Nigeria. OPEC disclosed this in its April 2024 Monthly Oil Market Report, or MOMR, which Vanguard was able to obtain.
However, OPEC said, citing secondary sources, that Nigeria continued to lead the continent in production throughout the period, generating 1.398 million barrels per day compared to Libya's 1.161 million barrels per day.
OPEC, however, declared: "Secondary sources indicate that the overall output of crude oil in OPEC-12 was 26.60 mb/d on average in March 2024—a 3 tb/d increase, month over month. While production declined in Nigeria, Iraq, and Venezuela, crude oil output rose mostly in IR Iran, Saudi Arabia, Gabon, and Kuwait.
While this is going on, the Federal Government has voiced worries about the industry's ability to fulfill its domestic crude responsibilities to nearby refineries, stressing the importance of continuing to provide local refineries with crude.
During a meeting to review the Domestic Crude Oil Supply Obligation under Section 109 (2) of the Petroleum Industry Act, PIA 2021, Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, stressed that local refineries' crude supply has to come first.
Komolafe noted that the government's main goal was to make sure Nigeria turned into a net exporter of refined petroleum products.
In order for us as a country to take advantage of the chance to buck the negative trend and become a net exporter of petroleum products, producers should ensure that their domestic crude oil supply is met by domestic refineries, particularly at this time when we are attempting to remove the subsidy regime. The only way to maintain that is to strengthen our ability to refine petroleum domestically.