Nigeria Ends 2021 With Yet Lower Oil Production

No glimmer of hope is insight for Africa’s largest crude oil producer and exporter, Nigeria, as the country’s crude oil output plunges even lower than expected.
Statistics from the Organization of the Petroleum Exporting Countries, OPEC says the country’s oil output remains around 1.2million barrels per day despite opportunities to churn out between 1.7 and 1.5 in quota during the year ending.
The OPEC’s market report for December sees the country’s oil output sliding from 1.7mb/d in 2019, to first 1.4mb/d in 2020, and at the beginning of this year, to 1.3mb/d at the second quarter of the year, and has remained in that region till November, according to latest collated data.
According to secondary sources, total OPEC -13 crude oil production averaged 27.72 mb/d in November 2021, higher by 0.29 mb/d m-o-m.
Although crude oil output increased mainly in Saudi Arabia, Iraq and Nigeria last month, however, increment in Nigeria’s case amounted to just a few thousands of barrels, not significant enough to cause any major celebration in the year.
Although no disruption to production by Niger Delta pressure groups has been recorded recently, some pipeline shutdowns and shut-in, thefts, vandalism, leaks and flows were reported during the year.
Latest industry data obtained from the Nigerian National Petroleum Company Limited showed that eight oil terminals were shut down between August and October this year, leading to both losses and deferred crude oil production valued at about N556billion at the official exchange rate of N411.95 to the dollar.
According to collated data, the affected eight terminals include Forcados, Bonny, Odudu, Brass, Yoho, Urha, Ajapa and Aje.
As a result, deferred/lost production in October alone was to the tune of 4,824,946 barrels of oil, the lowest among the figures posted during the three-month period.
The shut-ins and losses, according to the report, were due to pipeline vandalism, community interferences, sabotage of oil facilities, among others.
Losses and deferment in August, September and October were put at 6,680,620 barrels; 6,362,700 barrels; and 4,824,946 barrels respectively.
Further analysis of the reports from the NNPC showed that 20 incidents led to deferred output of 6,680,620 barrels of crude oil in August due to various production shut ins.
It was also observed that eight crude oil terminals were affected in August, as production was curtailed at the facilities during the period.
The affected terminals in the reviewed month include Forcados, Sea Eagle, Brass, Yoho, Qua Iboe, Escravos, Ajapa and Otakikpo.
Explaining some of the incidents that curtailed production in one of the terminals, for instance, the NNPC said, “Energia (an oil firm) injection into Brass line (was) suspended due to pipeline damages.