…. output dips to 1.324 mbpd due to divestment
Caption:Oil industry rig Photo
Nigeria’s crude oil exploration activities declined in September 2024, according to a new report by the Organization of Petroleum Exporting Countries (OPEC).
The slowdown is attributed to low investment in the upstream petroleum sector.
Data from Direct Sources shows that crude oil production fell marginally from 1.352 million barrels per day in August to 1.324 million barrels per day in September.
Additionally, the number of rigs deployed for exploration decreased from 17 at the beginning of 2024 to 14 in September.
The decline in exploration activity reflects a lack of interest and investment from International Oil Companies (IOCs), which have been divesting from Nigeria.
Algeria emerged as the leading nation in exploration with 43 rigs, while Equatorial Guinea had zero rigs deployed.
Nigeria’s proven oil reserves stand at approximately 37 billion barrels, and its proven natural gas reserves are estimated at 209 trillion standard cubic feet (Tscf). Despite efforts to increase these reserves, progress has been limited.
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Oil production has remained relatively stable between 1.1 million and 1.3 million barrels per day since 2022, falling short of the government’s target of 1.7 million barrels per day.
While OPEC has set a quota of 1.5 million barrels per day for Nigeria until December 2025, production has been hindered by rampant pipeline vandalism and crude oil theft.
Crude oil theft remains a significant challenge in Nigeria’s oil-producing regions, impacting government revenues. The National Security Adviser, Nuhu Ribadu, estimated that the country loses 400,000 barrels of oil per day to thieves.
