Oil & Energy

‘Nigeria’s April Production Below Budget Benchmark’

Published

7 years ago

May 13, 2019

Notwithstanding its increased production output of 1.95 million barrels daily (mbd) for April, according to the latest S&P Global Platts survey, Nigeria’s output remains below the 2019 budget benchmark of 2.3mbpd at $60 per barrel.
Although OPEC and 10 non-OPEC partners had in December, agreed on a new supply accord, which runs from January-June, which exempts Iran, Libya, and Venezuela, Nigeria’s output has been on the rise since the beginning of the year.
Nigeria’s quota under the deal is 1.69mbd, though it disputes the inclusions by Platts and other market watchers of some grades that it considers to be condensate.
Nigeria boosted its April production to a 14-month high of 1.95mbd despite delays to loadings of key export grade, Qua Iboe, according to traders, and disruptions to a major Bonny Light pipeline, the survey found.
After four months of decline, tightening the oil market considerably, OPEC’s collective crude oil production in April held relatively steady from March, rising just 30,000 b/d to 30.26mbd, an S&P Global Platts survey has shown.
However, individual output levels among the 14 OPEC members varied month-on-month, with Iran’s sanctions-induced slump, and Angola’s drop offset by significant rises in Nigeria and Iraq, and recoveries in crisis-torn Libya and Venezuela, the survey found.
Among the 11 OPEC members with output quotas, compliance in April was 116 per cent, according to Platts calculations, largely due to Saudi discipline, this giving the coalition some cushion to increase production and still remain within the parameters of the deal.
Saudi Arabia, the organisation’s largest producer by far, held its April output at 9.82mbd, the lowest in over four years, and well below its quota under an OPEC/non-OPEC accord, according to the survey, as it continues to demonstrate considerable restraint in hopes of bolstering oil prices.
But with the U.S this month, tightening its sanctions on crude exports from Iran by allowing waivers to eight countries to expire, all eyes will be on Saudi Arabia and how it manages its production going forward.
The kingdom, which says it has a total production capacity of 12.5 million b/d, faces immense pressure from the U.S. to keep the oil market well-supplied in the event of a squeeze due to sanctions, but must weigh its own internal budgetary aims, as well as OPEC unity.
Geopolitical rival Iran, whose production has fallen to below U.S. sanctions between January 2012 and January 2016, and denounced in advance any move by other members to claim its market share.
Iran pumped 2.57mbd in April, a 120,000 b/d drop from March, and the lowest since December 1988, the Platts survey found, as many buyers began to shy away in anticipation of the U.S. decision on the sanctions waivers.
Many analysts expect an even heftier fall in Iranian crude production going forward, as the U.S. cracks down on sanctions enforcement.
Saudi Arabia is set to host a meeting of the nine-country OPEC/non-OPEC market monitoring committee that it co-chairs with Russia on May 19, in Jeddah, where comments from oil ministers are sure to be monitored closely.

Libya, which does not have a quota, produced 1.10mbd in April, the highest since June 2013, as it benefited from the ramp-up of its Sharara field, which is prone to security according to the survey.

Meanwhile, Venezuela, which is also exempt from the deal, saw some recovery from power outages that had crippled the country in March to pump 780,000 b/d, though many oil facilities are still impaired and production remains well below its peak.
In Angola, declines at mature fields brought production down to 1.41mbd in April – the lowest level since it joined OPEC in 2007 – even with the new Kaombo field coming online.

Oil & Energy

Take Concrete Action To Boost Oil Production, FG Tells IOCs

Published

3 days ago

February 9, 2026

The Tide

The Federal Government has called on urged International Oil Companies (IOCs) operating in Nigeria to take concrete steps to ramp up crude oil production, following the country’s ambitious target of reaching 2.5 million barrels per day by 2027.

Speaking at the close of a panel session at the just concluded 2026 Nigerian International Energy Summit, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government had created an enabling environment for oil companies to operate effectively.

Lokpobiri stressed that the performance of the petroleum industry is fundamentally tied to the success of upstream operators, noting that the Nigerian economy remains largely dependent on foreign exchange earnings from the sector.

According to him, “I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream.

“I am also happy with the team I have had the privilege to work with, a community of committed professionals. From the government’s standpoint, it is important to state clearly that there is no discrimination between indigenous producers and other operators.

“You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations. Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians.”

The minister pledged the federal government’s continued efforts to sustain its support for the industry through reforms, tax incentives and regulatory adjustments aimed at unlocking the sector’s full potential.

“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. The question now is: what will you do in return? The government has given a lot.

Now is the time for industry players to reciprocate by investing, producing and delivering results,” he said.

Lokpobiri added that Nigeria’s success in the upstream sector would have positive spillover effects across Africa, while failure would negatively impact the continent’s midstream and downstream segments.

“We have talked enough. This is the time to take concrete actions that will deliver measurable results and transform this industry,” he stated.

It would be noted that Nigeria’s daily average oil production stood at about 1.6 million barrels per day in 2025, a significant shortfall from the budget benchmark of 2.06 million barrels per day.

Oil & Energy

Host Comm.Development: NUPRC Commits To Enforce PIA 2021

Published

3 days ago

February 9, 2026

The Tide

The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, has restated the commission’s commitment to ensuring oil companies comply with the Petroleum Industry Act (PIA) 2021 to promote sustainable development in host communities.

Eyesan made the remark at a Sensitization Programme in Owerri, Imo State, explained that the PIA 2021 mandates oil companies to contribute 3% of their annual operating costs to Host Communities Development Trusts (HCDTs) for community development projects.

Represented by Atama Daniel, Eyeso said “The funds will be used for education, healthcare, infrastructure, and economic empowerment”.

Eyesan assured that the commission would facilitate a smooth implementation process and ensure compliance by oil companies.

She, however, urged oil-producing communities to protect oil facilities in their areas as well as stop all illegal oil exploration activities within their communities.

The chief executive also disclosed that NUPRC has established Alternative Dispute Resolution Centres to resolve disputes between oil companies and host communities.

Earlier, the National President, HOSTCOM, Dr. Benjamin Tamarenebi, advised the host communities to always embark on sustainable development projects rather than frivolous projects.

He warned traditional rulers against bidding for contracts for execution of projects approved for their communities in line with the provisions of the Petroleum Industry Act.”

Tamarenebi noted that monarchs, as heads of Host Communities Board of Trustees, have the responsibility of supervising the awarding and execution of projects approved for the communities and ensuring accountability, adding that awarding contracts to themselves will lead to compromise.

He disclosed that funds disbursed to the communities are now higher than before and urged the communities to take good advantage of it.

“They can build schools and other sustainable projects and think of something that will always be a more economical variable in the community; if this is done there would be economic activities and development. In order not to waste the funds, manpower, train your children with the funds, give them scholarships instead of buying vehicles or renting apartments in the city”, he said.

In his remarks, the Deputy Executive Director, Environmental Defenders Network (EDEN), Johnson Abiye, urged regulators to ensure smooth implementation of the Petroleum Industry Act as it relates to the oil producing communities.

Abiye noted that many communities that were supposed to be part of HOSTCOM were omitted and called for the situation to be redressed.

Oil & Energy

PETROAN Cautions On Risks Of P’Harcourt Refinery Shutdown

Published

3 days ago

February 9, 2026

The Tide

The Petroleum Products Retail Outlets Owners Association (PETROAN) has expressed fears of rust, corrosion, abandonment, lack of lubrication, and eventual destruction of installed equipment at the PortHarcourt Refinery due to continued Shutdown.

PETROAN said it would also result in rendering the entire revamp effort futile if urgent action is not taken.

The Public Relations Officer and Spokesperson of the Association, Dr. Joseph Obele, in a statement, noted that over $1.5 billion of public funds were reportedly expended on the rehabilitation of the Port Harcourt Refinery, which was reopened in November 2024 and shut down again in May 2025 due to alleged financial losses.

Speaking on the sidelines of the recent remarks credited to the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, in which he described the re-operationalisation of the Port Harcourt Refinery and Petrochemical Company as a ‘waste of resources’ and admitted that NNPC lacks the capacity to operate refineries profitably, Obele expressed disappointment, describing the statement as troubling, demoralising, and deeply disturbing, and raising fundamental questions about institutional responsibility, governance, and the stewardship of public resources.

With the huge funds already spent on the rehabilitation process, Obele stated

therefore, that for the GCEO of NNPC to dismiss the entire exercise as a waste of resources, without clear attribution of responsibility, performance audits, or accountability measures, is unacceptable to Nigerians.

“If NNPC truly lacks the capacity to run refineries profitably, as admitted by its own GCEO, then Nigerians deserve to know who advised the investment, who supervised the rehabilitation, who certified the restart, and who benefited from the contracts and operations.

“Public institutions cannot casually dismiss a multi-billion-dollar national asset as a mistake without consequences”, he said.

The PETROAN spokesperson also faulted the narrative by Ojulari that Nigerians should be “thankful” solely because of the success of the Dangote Refinery.

While acknowledging the strategic importance and commendable achievement of the privately owned refinery, he stressed that private investments cannot replace the constitutional and economic obligation of government to efficiently manage public assets.

“Dangote Refinery is a private investment driven by profit and efficiency. NNPC, on the other hand, holds national assets in trust for Nigerians. One cannot be used as an excuse for the failure of the other,” Dr. Obele emphasized.

The energy expert further warned that repeated public admissions of incompetence by NNPC leadership risk eroding investor confidence, weakening Nigeria’s energy security framework, and undermining years of policy efforts aimed at domestic refining, price stability, and job creation.

He described as most worrisome the assertion that there is no urgency to restart the Port Harcourt Refinery because the Dangote Refinery is currently meeting Nigeria’s petroleum needs.

“Such a statement is annoying, unacceptable, and indicative of leadership that is not solution-centric,” he said.

The PETROAN National PRO reiterated that Nigeria cannot continue to normalise waste, institutional failure, and retrospective justification of poor decisions stressing that admitting failure is only meaningful when followed by accountability, reforms, and a clear, credible plan to prevent recurrence.

By: Lady Godknows Ogbulu