The Organisation of Petroleum Exporting Countries, OPEC has disclosed that Nigeria’s crude oil output increased by 31.1 million barrels in four months.
OPEC’s recent report on the monthly oil market obtained on February 16, 2023 at Abuja covered the activities of the industry for October 2022, November 2022, December 2022 and January 2023.
Investors King gathered that in the third quarter of 2022, Nigeria’s average oil output was 0.999 million barrels per day.
OPEC data showed that Nigeria had a daily increase in its output in January 2023, as it raked an average of 1.258 million barrels per day. With this, it added 259,000 barrels daily and 7.77 million barrels in the month.
The breakdown of statistics for the fourth quarter of 2022 stated that an average of 1.186 million barrels per day was recorded in November and 1.235 million barrels daily in December.
“The OPEC Reference Basket crude rose $1.94, or 2.4 per cent, m-o-m (month-on-month) in January to average $81.62/barrel. The ICE Brent front-month increased by $2.57, or 3.2 per cent, to average $83.91/barrel, and NYMEX WTI rose by $1.64, or 2.1 per cent, to average $78.16/barrel. The Brent/WTI futures spread widened m-o-m, rising by 93 cents to average $5.75/barrel,” the data stated.
Stakeholders of the sector have applauded the federal government for the impressive record, urging it to sustain the oil output increase as Nigeria is yet to meet up the OPEC’s oil output quota stipulated for its members.
Nigeria’s remarkable additional 31.1 million barrels of crude oil in four months was made possible due to the beefed up security and surveillance of oil facilities in the Niger Delta region of the country where crude oil is majorly derived from, thereby reducing oil theft and increasing its output, Investors King learnt.
The President, Petroleum Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry commended the security agencies for improving security in the Niger Delta region which resulted to the impressive record.
“We’ve been following developments as regards oil production and we must commend the government and security agencies for the work they are doing on this.
“However, there’s still a lot of work to do, because we have not met the production quota approved for us as a country by OPEC. So we have to work harder to meet this target in order to get the revenue from that too,” he said.
Nigeria’s Oil Rig Count Soars From 11 to 30, Says NUPRC CEO
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has announced a surge in the country’s oil rig count.
Komolafe disclosed that Nigeria’s oil rigs have escalated from 11 to 30, a substantial increase since 2011.
Attributing this surge to concerted efforts by NUPRC and other governmental stakeholders, Komolafe highlighted the importance of instilling confidence, certainty, and predictability in the oil and gas industry.
He explained the pivotal role of the recently implemented Petroleum Industry Act (PIA), which has spurred significant capital expenditure amounting to billions of dollars over the past two and a half years.
Speaking in Lagos after receiving The Sun Award, Komolafe underscored the effective discharge of NUPRC’s statutory mandate, which has contributed to the success stories witnessed in the sector.
The surge in Nigeria’s oil rig count signifies a tangible measure of vibrant activities within the upstream oil and gas sector, reflecting increased drilling activity and heightened industry dynamism.
Also, Komolafe noted that NUPRC has issued over 17 regulations aimed at enhancing certainty and predictability in industry operations, aligning with the objectives outlined in the PIA.
Oil Prices Rebound in Asian Markets Amid Red Sea Shipping Concerns
Middle East Tensions Keep Oil Prices Near Three-Week Highs, China’s Economic Recovery Offers Support
Oil prices remained close to three-week highs on Tuesday, buoyed by ongoing tensions in the Middle East and signs of economic recovery in China.
Brent crude oil, against which Nigerian oil is priced, dipped by 29 cents to settle at $83.27 a barrel while U.S. West Texas Intermediate (WTI) crude oil fell 38 cents to $78.08 a barrel.
Geopolitical uncertainties in the Middle East, particularly heightened by Iran-aligned Houthi attacks on shipping lanes, continued to influence market sentiment.
The Houthis’ recent strikes have targeted vessels in the Red Sea and Bab al-Mandab Strait, escalating concerns about disruptions to global shipping.
Meanwhile, China’s economic resilience served as a counterbalance to the geopolitical tensions. The country’s tourism revenue surged by 47.3% year-on-year, surpassing pre-COVID levels during the Lunar New Year holiday.
Also, China implemented a record cut to a benchmark mortgage reference rate to stabilize its property market and economy.
Despite these supportive factors, concerns about global oil demand lingered following a bearish report by the International Energy Agency (IEA).
The IEA revised its 2024 oil demand growth forecast downward, reflecting the ongoing transition to cleaner energy sources worldwide.
As such, market participants remain vigilant about the delicate balance between geopolitical risks and demand dynamics influencing oil prices.
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