In September, Nigeria’s daily average crude oil production increased to 1.4 million barrels, marking a notable rise from the 1.18 million Barrels Per Day (BPD) recorded in August.
However, despite this increase, the country did not meet its production quota set by the Organisation of Petroleum Exporting Countries (OPEC), which stood at 1.8 million barrels per day.
According to the oil production data released by the Nigerian Upstream Regulatory Commission (NUPRC), daily production, in comparison to August, grew by 165,429 barrels on average.
The total oil output for the month was 40.4 million barrels, with the highest production recorded at oil terminals like Bongo, Egina, and Erha.
This shortfall in production puts Nigeria at odds with its OPEC quota. Over the four months from August to November, the country was expected to produce 1.826 million bpd, 1.830 million bpd, 1.826 million bpd, and 1.747 million bpd, respectively, as per the agreed production quotas.
OPEC and its allies had previously agreed in June 2023 to reduce global oil production by 1.393 million barrels per day, starting in January 2024, which led to a 20.7 percent reduction in Nigeria’s oil production quota.
The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, mentioned that Nigeria intended to renegotiate its crude oil production quota by November.
He explained that increased output was expected by October and that the Nigerian government would request further increases in November during the OPEC+ meeting, which includes OPEC members and its non-OPEC partner, Russia.
Kyari stated, “OPEC understands that it is not that Nigeria does not have the capability to produce more crude, but the challenge has been security. Everything we are doing to combat insecurity in the Niger Delta is working. OPEC has given us (Nigeria) a target to increase production between now and October, and we will work with that. I think it is very practical to reach between 1.5 to 1.6 million barrels per day by October.”
The Federal Government (FG) has attributed the fluctuation in oil production to factors such as crude oil theft and pipeline vandalism. It has also highlighted improvements due to its ongoing efforts to combat these challenges.
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