(3 minutes read)
· Nigeria’s capacity to take advantage of the oil price rally remains undermined by the Organization of the Petroleum Exporting Countries’ (OPEC’s) quota and local challenges
· Despite rising oil prices and opportunities for improved earnings, the country pumped only 1.48 million barrels of crude in June lowest level since January this year compared to 1.55 million recorded in May
· OPEC’s 13 members pumped 26.19 million barrels per day in June, up 480,000 bpd from May
Nigeria’s capacity to take advantage of the oil price rally remains undermined by the Organization of the Petroleum Exporting Countries’ (OPEC’s) quota and local challenges.
Despite rising oil prices and opportunities for improved earnings, the country pumped only 1.48 million barrels of crude in June, the lowest level since January this year compared to 1.55 million recorded in May. The latest S&P Global Platts survey puts that Nigeria posted the heaviest drop in output in June. The reasons are significant operational issues. Some of its large oil fields, especially those in the Niger Delta like Bonny, Escravos, Brass River and Qua Iboe, are pumping well below their full capacity. It is reported that technical problems and maintenance are the reasons for the fall in oil production. .
Nigeria’s production volume is below the 2021 budget estimate for theyear. OPEC’s 13 members pumped 26.19 million barrels per day in June, up 480,000 bpd from May. This was due to Saudi Arabia’s continued voluntary extra production cut. The group’s nine non-OPEC partners, led by Russia, produced 13.27 million b/d, a rise of 60,000 b/d from May.
Nigeria has four refineries with a combined nameplate capacity of 445,000 b/d, which are all offline after years of neglect, making the country fully reliant on refined product imports.
