New Telegraph

Nigeria Lost 165,000 BPD From Jan To May 2023 –Report

Nigeria lost 165,000 barrels per day from unplanned crude oil production outages between January and May 2023, the African Energy Chamber has said. It also stated in its Second Quarter (Q2) State of African Energy report released in August 2023 and seen by Sunday Telegraph yesterday that this added up to over 90 percent of the unplanned outages over the period.

African Energy Chamber is an energy advocacy group based in South Africa, founded in 2018, which focuses on legal issues related to oil and gas in African countries. According to the report, many issues led to these unplanned outages in the country.

It listed some of them to include: Force Majeure, being implemented due to pipeline blasts and rampant crude theft and a large number of illegal connections on existing pipelines.

Other are fire incidents near pipelines; worker and union strikes, creating industrial disputes; terminals not operating at 100 percent capacity. It further stated that maintenance activities on fields flowing Forcados, Usan, and Abo crude streams also impacted Nigeria’s output in H1 2023.”

The report said that only Algeria is expected to be producing a surplus over the target and hence continue to comply with the OPEC cuts and targets. This was contained in its production forecasts for 2024 based on field-level performance from the producing fields in producers like Algeria, Nigeria, and Angola.

AEC also projected that Nigeria is expected to reach 95 percent of its production targets despite heavy cuts of 360,000 bpd. It said that with the projected 95 percent of Nigeria’s production target, the country is expected to comply completely with the OPEC cuts, not because the country is adhering to the policies, but because the production capacity is less than the target.

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