- Anger Trail Drastic Decline…
By Tolúlopé Olátúnjí
In its oil market report for June, the Organisation of Petroleum Exporting Countries (OPEC) has revealed that Nigeria witnessed a sharp decline in its crude oil production, dropping astonishingly to 1.25 million barrels per day (bpd) in May 2024.
According to the data, the OPEC also revealed that the country’s oil production fell by 2.34 percent from the 1.28 million bpd recorded in April.
This decline occurred despite reported improvements in combating crude oil theft and pipeline vandalism by the Nigerian National Petroleum Company Limited (NNPCL).
The report also indicated that the country’s production was at 1.3 million bpd during the fourth quarter of 2023 and the first quarter of 2024.
Interestingly, the OPEC report also noted that secondary sources reported an increase in Nigeria’s crude production by 5% to 1.41 million bpd from 1.35 million bpd in April. Both figures, however, fell short of Nigeria’s 2024 OPEC production quota of 1.5 million bpd.
The OPEC report stated: “According to secondary sources, total OPEC-12 crude oil production averaged 26.63 mb/d in May 2024, 29 mb/d higher month-on-month. Crude oil output increased mainly in Nigeria, Gabon, and Equatorial Guinea, while production in Saudi Arabia, Kuwait, Libya, and Congo decreased.”
“At the same time, total non-OPEC DoC crude oil production averaged 14.29 mb/d in May 2024, 152 tb/d lower month-on-month. Crude oil output increased mainly in Mexico, while production in Russia and Kazakhstan decreased,” it added.
Despite the drop, Nigeria retained its position as the largest oil producer in Africa, followed by Libya, which produced 901,000 bpd in May. Algeria was the third-largest producer with 264,000 bpd.
Meanwhile, the OPEC’s production data is based on direct communication with Nigerian authorities. The organization gathers data from two sources: direct communication from member countries and secondary sources like energy intelligence platforms.
