According to data from its regulator, Nigeria’s crude oil production dropped below 1 million barrels per day (BPD) in August. This was because pipeline theft was common, and the country had not invested in its oil industry for years.
The fall in crude oil production threatens the already precarious finances of the most populous country in Africa. Moreover, it reduces the world’s oil supply at a time when energy prices are skyrocketing as a result of the conflict in Ukraine.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that in August, the country’s overall output of oil and condensates fell to an annual low of 1.18 million BPD.
According to Richard Bronze, head of geopolitics at consulting firm Energy Aspects, Exports were at their lowest level since at least 1990 as problems at the Forcados export facility exacerbated a precarious supply situation.
Data from OPEC revealed that production never dropped below 1.4 million BPD, despite what was regarded as debilitating militant strikes in the Niger Delta at the time.
An executive from Shell (SHELL) stated in July that industrial-scale oil theft is an “existential threat” to what is generally Africa’s top oil exporter, and President Muhammadu Buhari has said that the issue is “enormously” damaging state finances. learn more
According to OPEC statistics, Nigeria lost ground to Angola as the continent’s top exporter in July. Production has been impacted in both nations by years of poor investment.
Despite having the capacity to export up to 2 million BPD, the country’s most significant oil and condensate output for the year was 1.68 million BPD in January.
The chairman of the state-owned oil corporation NNPC LTD stated last month that 700,0000 BPD of its exports were missing due to oil theft, which forced businesses to halt operations in other locations.
Some businesses claim that almost 80% of the oil they put into specific pipes was stolen.
This week, the safety of its members was a concern of an oil workers’ union, and it threatened to strike if the government did not move quickly to stop oil theft.