Nigeria’s Oil Output Is 1 Million Bpd Lower Than Its Capacity

Cat:

Related stories

China Snubs U.S. Crude for Third Month, Even as Ethane Trade Restarts

China has avoided buying U.S. crude oil for three...

Super Eagles Icon Peter Rufai Passes Away at 61

By Abiola Olawale The Nigerian football community has been thrown...

Dakuku Peterside’s Beneath the Surface Book Out in October

By Abiola Olawale Masobe Books, a renowned publisher has announced...

Oil Prices Dip on Confirmation of Inventory Build

Crude oil prices opened weaker today following Wednesday’s release...

Buhari In Stable Condition – Ex-Aide Confirms

By Abiola Olawale Ahmed Bashir, ex-aide to the immediate past...

By Irina Slav 

Nigeria is producing 1 million barrels daily less than it can produce, local media reported today, citing the country’s federal government.

The government cited a lack of investments, a shortage of funding sources because of the energy transition, and insecurity among the factors driving the situation.

The Nigerian Upstream Petroleum Regulatory Commission served the warning, with its chief executive noting that the challenges the industry was facing “range from insecurity, low investment, and de-prioritisation of funding of hydrocarbon development arising from the energy transition.”

“Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” Gbenga Komolafe also said, as quoted by Punch.

The Western African producer is the biggest on the continent but it has struggled to boost its output and put an end to pipeline vandalism, which has made the investment environment in the country additionally challenging.

Earlier today, the Upstream Petroleum Regulatory Commission reported that oil production in Nigeria had slipped below 1 million barrels daily in April. The drop was at least in part the result of strikes at Exxon facilities that led to the company declaring force majeure on several assets, including the Qua Iboe export terminal.

Now the dispute with the workers has been settled and this month’s production rate will likely be higher but it would still fall short of what Nigeria has the capacity to produce.

Meanwhile, the UK’s Supreme Court ruled in favor of Shell in a lawsuit brought against the supermajor by Niger Delta communities and individuals regarding an oil spill from 2011. According to the court, the claimants had been too late in filing their suit and had missed the deadline for such filings.

NB: Irina Slav wrote this article for Oilprice.com

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
China Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsSuper Eagles Icon Peter Rufai Passes Away at 61Dakuku Peterside’s Beneath the Surface Book Out in OctoberOil Prices Dip on Confirmation of Inventory BuildBuhari In Stable Condition - Ex-Aide ConfirmsBREAKING: Ex-President Buhari sick, hospitalised abroad2027: Abure, Usman Clash Over Peter Obi’s Rising Profile in ADC CoalitionMTN’s Dabengwa Tier III Cloud Data Centre: A New Era for West African Tech and AIGanduje: Why are they resigning?OPEC Reports a Global Oil Production Decline in 2024IMF Warns FG to Overhaul 2025 Budget to Prevent Economic Meltdown2027: Peter Obi Vows, Says ADC Coalition 'll prioritize Nigerians’ WelfareTragedy! Liverpool Star Diogo Jota Dies in Car Crash in SpainFamily Announces Burial Date of Ex-Kwara Governor, Cornelius AdebayoSex Scandal: Baltasar Engonga, Ex-Equatorial Guinea Anti-Corruption Boss Bags 18 Years
X whatsapp