Nigeria’s crude oil production plummets for second consecutive month – OPEC
By Innocent Raphael
Nigeria, Africa’s largest oil producer, faced a significant setback in its crude oil production, marking the second consecutive monthly decline in output since the start of the year.
According to a monthly report released by the Organization of the Petroleum Exporting Countries (OPEC) on Thursday, Nigeria’s crude oil production dropped to 1.231 million barrels per day in March, a decrease from February’s output of 1.322 million barrels per day.
The report further noted that Nigeria’s crude oil production reached 1.427 million barrels per day in January but saw a decline in February, while production continued to decrease in March.
Despite these fluctuations, OPEC data revealed that Nigeria’s average crude oil production in the first quarter of 2024 stood at 1.327 million barrels per day, surpassing the 1.313 million barrels per day average production recorded in the fourth quarter of 2023.
It added that, Nigeria’s oil output in the first quarter of 2024 exceeded the average production of 1.201 million barrels per day observed in the third quarter of the previous year.
The report highlighted the challenges Nigeria encountered in sustaining its oil production, citing persistent issues such as oil theft and pipeline vandalism.
The Nigerian National Petroleum Company Limited (NNPCL) reported 155 incidents of oil theft within a single week, including illegal pipeline connections and illicit refineries uncovered in the Niger Delta region.
NNPCL summarized the incidents, reporting 53 illegal connections, 36 illegal refineries, and 32 wooden fiber boats. Additionally, they identified 14 cases of pipeline vandalism, eight vessel infractions, and four oil spills, while making seven vehicle and one vessel arrests.
Several sources affected by these incidents, included companies such as Nigeria Agip Oil Company, Tantita Security Services Ltd, NNPCL Command and Control Centre, Shell Petroleum Development Company, and NNPCL 18 Operating Ltd, among others.
Furthermore, the report outlined the detrimental impact of these activities on the environment, with oil spills and leaks causing destruction to aquatic life and ecosystems.
Despite efforts by the national oil company to combat crude oil theft, OPEC decried that Nigeria continues to suffer substantial losses, with over N4.3 trillion worth of crude oil stolen in 7,143 pipeline vandalism cases within a five-year period.
According to the report, NNPCL reported the arrest of 38 suspects during the reviewed week, reaffirming their commitment to combatting crude oil theft until it is completely eradicated.
It however mourned Nigeria’s substantial losses to crude oil theft, amounting to trillions of naira, have prompted some international oil companies to shift investments from onshore to deep offshore oil fields or withdraw from the country entirely.
In November 2023, the Federal Government disclosed that over N4.3 trillion worth of crude oil had been stolen in 7,143 pipeline vandalism cases over a five-year period.
As the country grapples with these issues, the government faces mounting pressure to address security threats and implement measures to safeguard its oil infrastructure and revenue.
