New Telegraph

Report: Nigeria instrumental to improved OPEC’s Dec oil output

Production peaked at 1.35mbpd

The rise in crude oil production from Nigeria was instrumental to the increase in crude oil supply of the Organisation of Petroleum Exporting Countries (OPEC) in December 2022, a new Bloomberg survey has said. It stated that Nigeria’s crude oil production rose to 1.35 million barrels per day in December. The survey added that the Organisation of Petroleum Exporting Countries’ production for the month of December increased by 150,000 bpd over November figures, adding that Nigeria was instrumental to the increase.

It stated that though OPEC’s crude oil production increased in December, the organisation was still significantly short of its production targets for the month. According to the report, OPEC’s crude oil production continues to lag behind its designated quotas and fell in November by 744,000 bpd, its most recent Monthly Oil Market Report showed. For November, Saudi Arabia’s production fell by 404,000 bpd, to 10.474 million bpd. The UAE, Kuwait, and Iraq also saw production decreases for November, bringing the group’s production to 28.826 million bpd—the lowest since June. It was 800,000 bpd below target.

It added that the larger Organisation of Petroleum Exporting Countries and its allies called OPEC+ moved to cut its production targets by 2 million bpd in November— about 1.27 million bpd set to come from OPEC members. The Monthly Oil Month Report for November released on December 13, 2022 by OPEC showed that Nigeria overtook Algeria and Angola. Using OPEC’s crude oil production based on direct communication, Nigeria’s production in August was 999000bpd; in September, 938,000 bpd; in October, 1,014mbpd; and 1.186mbpd in November, showing an increase of 171,000bpd.

But by OPEC’s crude oil production based on secondary sources, Nigeria’s crude production was 1.015 million barrels per day in September; 1.066mbpd in October; and 1.158mbpd in November, showing an increase of 92,000bpd. The NUPRC in its crude oil and condensate production data for July 2022 stated that Nigeria’s crude oil production also decreased in July to an average of 1.08 million barrels per day (bpd) from 1.16 million the previous month. It also said that Nigeria’s oil production with the addition of condensate, decreased in July by 6.42 per cent to 1.31 million bpd from 1.40 million in June.

Condensate is a mixture of light liquid hydrocarbons, similar to a light (high API) crude oil — usually separated out of a natural gas stream at the point of production (field separation) when the temperature and pressure of the gas are dropped to atmospheric conditions. OPEC in its in oil Market Report for July 2022 said Nigeria’s crude oil production was 1.238 million bpd (bpd) in June which is a decline from the nation’s OPEC allocation of 1.766 million bpd; Nigeria’s crude oil production quota in May was 1.753 million bpd; June, 1.772 million bpd; July, 1.799 million bpd and August, 1.826 million bpd.

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