Nigeria’s Crude Oil Production Rises 60,000 b/d to 1.38mb/d in August

By Adedapo Adesanya

Nigeria’s crude oil production grew to 1.38 million barrels per day in August, according to the latest Platts survey by S&P Global Commodity Insights.

According to data seen by Business Post, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) crude oil output grew by 120,000 barrels per day in August.

The increases in the trio of Iran, Iraq, and Nigeria more than offset further reductions by Saudi Arabia and Russia, which pledged to cut output to prop up the oil market.

Nigeria’s 1.38 million barrels per day showed a 60,000 barrels per day increase from 1.32 million published in July. It is still below the expected 1.742 million barrels expected by the country to produce daily according to a quota instituted by OPEC+.

This increase came as loading resumed at the Forcados terminal after an underwater leak disrupted loading for a month.

The 23-man OPEC+ production averaged 40.52 million barrels per day in the month, with the 13 members of OPEC producing 190,000 barrels per day month on month. Output from the non-OPEC countries in the coalition contracted by 70,000 barrels per day.

Even with the net increase, the group’s output remains well below levels earlier this summer, with Saudi Arabia implementing a voluntary 1 million barrels per day cut since July to help bolster market prices.

The OPEC+ alliance collectively continues to produce significantly below its quotas, with a total shortfall of 1.1 million barrels per day in August, according to the survey.

It was disclosed that the OPEC countries that are taking part in the cuts produced 687,000 barrels per day below their combined quotas in August, with many African members having struggled for months to reach their targets.

Under a deal agreed by the group in June, many of the underproducing countries have until November to demonstrate higher production or risk a permanent reduction to their quotas. Iran, Libya, and Venezuela are also exempt from quotas.

OPEC+ officials have said they will review their production levels monthly and adjust them as market conditions warrant.

The next meeting of the OPEC+ Joint Ministerial Monitoring Committee that oversees the agreement and is co-chaired by Saudi Arabia and Russia is scheduled for October 4.

The full 23-country OPEC+ alliance is not scheduled to meet until November 26. Under the agreement, the group can call extraordinary meetings and has done so in the past.