Nigeria's crude oil output exceeds the country's 1.5m barrel Opec production quota

NIGERIA'S daily crude oil output has exceeded the 1.5m barrels quota set for the nation by the Organisation of Petroleum Exporting Countries (Opec) for the first time this year indicating that the sector is recovering from neglect and vandalism.

Historically, Nigeria has always had an Opec production quota of 1.5m barrels a day based on output but over recent years this has been slashed. Due to a combination of neglect of the pipeline network, vandalism, oil theft and protests by communities in the Niger Delta, Nigeria's petroleum output has fallen by over 1m barrels a day.

This in turn led to Opec reducing Nigeria's production quota and even then, Nigeria struggled to meet the 1.5m barrels a day output. However, it appears that things are now turning around in the sector as output during the month of June stood at 1,505,474 barrels, representing  100.4% of the Opec quota.

According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), output first matched the Opec quota in January but subsequently fell again before surpassing it last month. Indicating that the sector is enjoying a renaissance, NUPRC revealed that Nigeria's total oil production, including crude and condensate, was approximately 1.7m barrels a day.

In May, crude output stood at 1.45m barrels a day, while both crude and condensate were 1.65m barrels a day, rising from the low production figure of 1.6m barrels in March. Notwithstanding, June’s crude output was still below the targeted 2.06m barrels projected in the 2025 budget.

Nigerian National Petroleum Corporation (NNPC) group chief executive, Bayo Ojulari, said: “We have started growing. In March, we were producing about 1.56m barrels per day and we’re now at 1.63m, including condensates. By the end of the year, we are hoping to clock 1.9m barrels daily.”

Since Mr Ojulari's appointment in April this year, the NNPC has been releasing monthly performance reports. It is not yet clear, however, if the NNPC will ask Opec to increase Nigeria's production quota as output rises.