Nigeria has remained the highest producer of crude oil in Africa despite the fall in its production in April 2022, according to the May 2022 Monthly Oil Market Report (MOMR) of the Organisation of Petroleum Exporting Countries (OPEC).
According to the report, Nigeria’s oil output in April 2022 stood at 1.3 million barrels per day, but was 1.5 million bpd in April 2021 resulting in a decrease of 13.3 per cent for this year.
The report stated that Equatorial Guinea was the least with 94,000 bpd.
Nigeria’s figure, however, excluded condensate, which it has the capacity to produce between 300,000 and 400,000 bpd. It is, however, not clear if the actual output matches the capacity as the Nigerian National Petroleum Company Limited (NNPCL) does not give regular information on the product line.
OPEC had increased Nigeria’s production quota by 19,000 bpd, amounting to 1.773 million bpd in June 2022, as part of measures targeted at achieving market stability.
The cartel increased Nigeria’s quota from 2.753 million bpd in May to 1.772 million bpd in June. This is an increase of 1.8 per cent.
In Africa, Nigeria got the approval for the production of the highest volume of crude oil in the month.
OPEC disclosed this in a statement on its 28th OPEC and non-OPEC ministerial meeting.
Meanwhile, Nigeria’s total national oil reserves have surged to 37.046 billion barrels as of January 2022, according to the data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
It contained this new reserves figure attained as at January 2022. The new oil reserves figure is a marginal increase from the levels attained prior to the establishment and implementation of the Petroleum Industry Act 2021.
The Chief Executive Officer of the Commission, Gbenga Komolafe, was quoted to have said that the NUPRC data showed Nigeria’s oil industry regulator position on mandatory conduct of gas well deliverability tests, gas flaring, below conventional oil window drilling, a new automated model for IOCs local and foreign royalty payments; unique identifier for oil cargoes, among others.
According to the data, Nigeria’s oil and condensate reserves status recorded a slight increase by about 0.37 per cent, 37.046 billion barrels as of January 1, 2022, from about 36.910 billion barrels in January 1, 2021, the data showed.
Also, the national gas reserves status, which stood at about 206.53 TCF as of January 1, 2021, increased by 1.01 percent, as of January 1, 2022, to about 208.62 trillion cubic feet (TCF).
Komolafe was quoted to have said that the latest figures, followed an analysis of the 2021 annual report on reserves submitted by the 61 operating oil and gas companies in the country in compliance with the requirements in the PIA, 2021.
Sections 7(i), (j), (k) and (r) of the PIA 2021 require all operating exploration and production companies in the country to submit their annual report of reserves to the Commission.
Komolafe also said NUPRC had commenced proactive initiatives to boost Nigeria’s crude oil and gas production by taking advantage of current global market realities as a result of the upsurge of crude oil prices to $106.25 per barrel at the international market and disruptions in gas supply due to the current Russia-Ukraine war.
He said that in unfolding those initiatives, NUPRC considered factors militating against the country’s efficient and effective exploration and production operations, while identifying those that would ensure a more deliberate and swifter implementation of strategies to guarantee increased crude oil and gas output and reserves.
He said the Commission had taken inventories of all shut-in oil wells as well as the reasons for their shut-in through the analysis of the inventory, to map and devise measures for quick reopening.
He added that the Commission was also using well and reservoir surveillance activities to identify poorly performing wells and work over candidates for quick interventions.