Rising from decreased oil production output in August and September, Nigeria’s oil production in October rose above 1 million barrels per day.
The recent increase in oil production is a result of improved protection for oil pipelines across the country.
According to data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s oil production increased to 1.02 million barrels per day in October 2022.
Investors King could recall that Nigeria’s crude oil production fell below the mark of 1 million barrels per day in August 2022.
Specifically, oil production in August stood at an average of 972,394 barrels per day.
The significant fall which was a result of the oil theft along the major oil pipelines in the country saw Nigeria losing its crown as Africa’s largest oil producer.
The massive oil theft provoked the oil workers union “PENGASSAN” to protest on the street of Abuja.
PENGASSAN further threatened to withdraw service if no reasonable effort was made to curb the oil theft.
Yet, the narration only got worse in September 2022 when Nigeria’s oil production dropped to 938,000 barrels per day.
This dropped Nigeria to Africa’s fourth largest oil producer after Angola, Libya, and Algeria in September 2022.
While commenting on the magnitude of the oil theft in Nigeria, Group Chief Executive Officer of NNPC, Mele Kyari noted that although oil theft in Nigeria has been going on for over 22 years, the rate it has assumed in recent times is unprecedented.
Kyari added that three operational facilities, the Forcados, Bonny, and Brass oil terminals have been shut down due to the high rate of theft which led to the loss of about 600, 000 barrels per day.
Meanwhile, with the improved oil production above 1 million barrels per day, Nigeria could benefit more from the increased price of crude oil in the global market.
Investors King learnt that Nigeria’s Bonny Light is currently trading at $98.51 from $96.57 it traded toward the end of October.