Nigeria Makes Progress in Crude Oil Sale, Rakes Additional N363bn in Three Months

The Federal Ministry of Petroleum Resources has disclosed that Nigeria is recording success in oil earnings as a result of improvements in security in the Niger Delta region.

This is coming as the country made an additional N363bn from crude oil sales in the months of October, November and December 2022.

Recall that crude oil theft and pipeline vandalism in the Niger Delta region have been hampering efforts at making huge outputs in oil production.

Owing to Insecurity around the oil production region, the nation has been recording low oil earnings, a development that has been a worry to the Federal Government.

To nip the ugly development in the bud, President Muhammadu Buhari recently read a riot act to criminals and ordered security agencies to eradicate crude oil theft and pipeline vandalism in the Niger Delta before his administration winds-off.

Buhari promised to improve the country’s oil productivity before he leaves office in May, this year, stressing that he would not tolerate the criminality any longer.

Giving the directive through the Minister of State for Petroleum Resources, Chief Timipre Sylva, while addressing troops of the Joint Task Force Operation Delta Safe in Effurum, Delta State, and Port Harcourt, Rivers State, the President directed security agencies to up their game and ensure no litre of crude oil is stolen across the oil-producing states.

It was gathered that prior to the renewed efforts of the Federal Government in battling crude oil thieves, the nation’s daily crude oil production was about 900,000 barrels per day.

But with the recent improvements in security efforts, there has been an increase in oil output, as production has risen to about 1.5 million barrels per day, according to the statement.

“I am happy to hear that morale is high here. We were here a few months ago to hand over the mandate of Mr. President to you and that is to ensure that there is zero tolerance for crude oil theft in the region,” Sylva had said.

The increased output in oil production has improved the country’s earnings from crude oil sales, even though Nigeria still expends billions of naira as petrol subsidy.

While attesting to progress being made in tackling oil theft and pipeline vandalism, the petroleum ministry, in figures it released, disclosed that the country’s oil production appreciated by 1.014 million barrels per day in October, representing an increase of 0.077mbpd when compared to the 0.937mbpd output in September.

The statistics further revealed that in November, the country pumped 1.185mbpd crude, indicating an increase of 0.171mbpd when contrasted with the daily output in October.

Oil production increased in December, 2022, as Nigeria produced 1.253mbpd, a development which indicated an increase of 0.05mbpd when compared to its output in November.

According to data gotten from two international economic and statistical firms, Statistica and Countryeconomy, the average cost of Brent, the global benchmark for crude,
in the last three months of 2022, was $93.4/barrel, $89.62/barrel and $76.42/barrel respectively.

Since oil production in Nigeria rose by 0.077mbpd in October, this represents an increase of 2.387 million barrels in that month.

At an average crude oil price of $93.4/barrel in the review month, the country is said to have earned an additional $222.95m (N101.02bn, at the official exchange rate of N453.1$) in October last year.

In November, Nigeria’s oil production rose by 0.171mbpd, an equivalent of 5.13 million barrels in that month, while the average price of crude in the same month was put at $89.62/barrel.

As Nigeria’s oil earnings increased by $459.75m (N208.31bn at the Central Bank of Nigeria official exchange rate of N453.1/$), oil output from Nigeria grew by 0.05mbpd, representing 1.55 million barrels for December 2022, while the average cost of Brent was $76.42/barrel.

To this end, the Federal Government’s revenue from crude oil export last month grew by $118.45m (N53.67bn at the official exchange rate of N453.1/$).