Nigerian Crude Production Jumps 100,000bpd in February

By Adedapo Adesanya

Nigeria’s crude production grew by 100,000 barrels per day in February, as the country moved closer to a target to lift output to 1.6 million barrels per day in the first quarter of 2023.

This is according to a Reuters survey published on Tuesday, despite an agreement by the wider Organisation of the Petroleum Exporting Countries and its allies, OPEC+ to cut production to support the market.

Nigeria has been battling crude theft and security issues in its oil-producing region, which saw the country’s production fall below 1 million barrels.

However, despite much progress, Nigeria is still pumping much less than its OPEC target.

The 23-member OPEC+, which is responsible for producing around 40 per cent of the world’s crude oil, cut its oil production targets as demand took a tumble during the pandemic.

The group slowly raised its production targets last year as demand increased but consistently failed to meet its monthly production targets. They decided to cut the OPEC+ output target by 2 million barrels per day, of which about 1.27 million barrels per day was to come from the 10 participating OPEC countries.

OPEC’s crude oil production for February was, on average, 150,000 barrels per day more than it was in January, as it rose to 28.97 million barrels per day, the survey said.

Iraq, also increased its output in the month while its fellow Gulf producers Saudi Arabia, Kuwait and the United Arab Emirates maintained high compliance with their targets under the OPEC+ agreement, the survey found.

Among countries with lower output, the largest drop of 80,000 barrels per day was in Angola due to a relatively small export programme in February and field maintenance on the Dalia stream.

Libya, Iran, and Venezuela are the three producers exempt from OPEC cuts. Iran posted higher exports in February, and Venezuelan output has increased slightly, according to the survey. Libyan output was steady.