In June 2024, 9am news Nigeria reported that the country’s total daily average crude oil production, including condensates, rose by 2.15% month-on-month (M-o-M) to 1.50 million barrels per day (mbpd) from 1.46 mbpd in May 2024.
The average crude oil production, excluding condensates, slightly increased to 1.28 mbpd in June 2024, up from 1.25 mbpd in May 2024.
However, it remains below the OPEC quota of 1.50 mbpd, which excludes condensates. Ogasabi, the news correspondent for 9am news Nigeria, highlighted these figures in his report. Persistent challenges such as pipeline vandalism, theft, and operational disruptions have kept production below the domestic target of 1.78 mbpd set in the 2024 budget.
The Forcados oil terminal achieved its highest production level in June 2024, reaching 7.10 million barrels (mb), a 2.59% M-o-M increase from its May 2024 output of 6.92 mb.
However, this represented a 10.89% year-on-year (Y-o-Y) decrease from the 7.97 mb produced in June 2023. Conversely, the Brass terminal recorded the lowest output level at 793,526 barrels in June 2024, marking a 0.56% M-o-M increase from 789,096 barrels in May 2024 but a 29.15% Y-o-Y decline from 1.12 mb in June 2023. Ogasabi detailed these insights in the 9am news Nigeria.
Despite the slight M-o-M increase in crude oil output levels in June 2024, Nigeria’s oil output has remained subdued, reaching a low of 0.94 mbpd in September 2022. This has resulted in significant revenue losses and a notable decline in FX supply since crude oil sales are a major source of FX for the country.
Ogasabi noted in the 9am news Nigeria that despite efforts by the Federal Government to bolster pipeline surveillance and crack down on oil theft, progress has been slow and inconsistent. Given these challenges, it is unlikely that there will be a significant increase in crude oil production this year.
The government’s proactive initiatives to reactivate inactive oil terminals and revive dormant oil wells drive the expectation that oil production will reach 1.56 mbpd in 2024, implying an average of 1.60 mbpd in the year’s second half. Nonetheless, the challenges may hinder the projected 6.90% growth in the oil sector in 2024.
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