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Nigeria leads Africa's oil production with 1.35mbpd

Despite not meeting its oil production quota of 1.74 million barrels per day (mbpd), Nigeria in the month of October, again maintained its top crude oil producer in Africa for the second consecutive month. The feat, according to the Organisation of Petroleum Exporting Countries (OPEC) Monthly Oil Market Report (MOMR) for November 2023, was achieved with a production of 1.35 mbpd output based on direct sources and 1.416 mbpd (secondary sources) in October 2023.

The report which was released by OPEC yesterday, showed that Nigeria’s crude oil production for October 2023, increased by an average of 4000bpd based on direct sources and 17,000bpd based on secondary sources compared with the previous month.

The OPEC report indicated that out of the 13 major member crude oil producing countries, crude oil output increased mainly in Nigeria, Angola, and Iran, while production in Libya, Saudi Arabia, and Kuwait decreased.

While this is still below the country’s 1.74 mbpd OPEC quota, yet it is a positive trend in the country’s crude oil output on a month-to-month basis, with a slightly lower but still significant increase from 1.181mbpd in August, 1.347mbpd in September, and 1,351mbpd in the month under review based on direct sources.

The report, according to secondary sources, showed a steady increase as the figures for August, September, and October increased to 1.249mbpd, 1.399 mbpd, and 1.416mpd, respectively. The number of functional crude oil production rigs in the country decreased to 13 operational rigs in October 2023 from 15 rigs recorded in September 2023. Yet, despite the country’s steady rise in crude oil production, Nigeria is still struggling to achieve above 16 functional rigs it recorded since 2019.

The report also showed that Angola’s crude oil production rose by 51,000 bpd, bringing the country’s total output in October to 1.172 mbpd, making it the second top African oil producer. Occupying the third position is Libya, whose oil production dropped by 26,000 bpd, bringing the total to 1.143 mbpd. Production in Gabon, Congo, Algeria, and Equatorial Guinea rose by about 10,000, 5,000, 3,000, and 2,000 bpd, respectively

Stakeholders have not failed to attribute this feat to the President Bola Tinubu’s administration, which they maintained has been targeting crude oil recovery, including the administration’s sustained boost in crude oil exports up to October. The country has enjoyed a commendable stability in the oil sector, especially given that there has not been a major disruption to shipments.

Industry operators are confident that with President Tinubu’s recent trip to Saudi Arabia where he assured investors in the country of the safety of their investments, including international oil companies and returns on their investment.