Nigeria meets OPEC quota in December 2024 oil production _ Bloomberg

A Bloomberg survey Monday says Nigeria has finally met the target in its December 2024 oil production circle after over four years of consistently failing to achieve the quota allocated to it by the Organisation of Petroleum Exporting Countries (OPEC).

Nigeria’s production increased by 40,000 barrels per day (bpd) to 1.51 million a day, reaching a four-year high, according to the survey. The current OPEC crude oil volume expected from Nigeria is 1.5 million bpd.

The survey results became public as the official OPEC production data as well as those of the upstream regulator in Nigeria, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), were still being awaited.

After years of failing to meet its circa 1.8 million bpd, OPEC had reduced Nigeria’s quota in 2023 to 1.5 million bpd, with the country still unable to hit the target since then.

In November last year, Nigeria came short of achieving the quota, with data from NUPRC showing that the country produced 1.485 million bpd, about 99 per cent of the expected OPEC output. It was, on the average, Nigeria’s highest volume of crude oil, excluding condensates drilled last year.

In January 2024, which hitherto had the highest crude oil production, Nigeria’s oil output was 1.42 million bpd.

In February of the same year, Nigeria recorded 1.32 million bpd; 1.23 million bpd in March; 1.28 million bpd in April; 1.25 million bpd in May; and 1.27 million bpd in June.

In July, the country’s OPEC oil production was 1.3 million bpd; in August, it was 1.35 million bpd; 1.32 million bpd in September; 1.33 million bpd in October, and then 1.485 million bpd in November, excluding condensate.

Nigeria had blamed its inability to meet the quota on massive oil theft in the Niger Delta, waning investment in the sector, outright sabotage, as well as deteriorating infrastructure.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Monday, listed some of the achievements of the Bola Tinubu administration in the oil sector, stressing that under the current government, crude output has been raised from one million bpd to 1.8 million bpd, including condensate.

Lokpobiri, on his X handle, said on assumption of office, Tinubu directed that the volume of crude produced by Nigeria must be increased, and maintained that the order was the foundation upon which the achievements by the ministry were built.

The minister said within the first 18 months of the Tinubu administration, the government had been able to attract foreign investments and ensure peace in oil-producing Niger Delta communities.

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc, recently announced a $5 billion Final Investment Decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.

In addition, the minister stated that under the Tinubu government, Nigeria won the bid to host the African Energy Bank (AEB), the first bank on the continent wholly devoted to the promotion of investments in the energy sector.

The bank with a $5 billion initial capital, is expected to take off in the last week of January.

Lokpobiri stated, “With the presidential directive to ramp up oil production to a sustainable level, the journey of transformation in our oil sector began. This visionary directive by President Bola Ahmed Tinubu, as broad as it was, became the cornerstone of my commitment and that of my team.

“We embraced it wholeheartedly, engaging stakeholders both domestically and internationally to build synergy and foster partnerships. Through these efforts, we successfully attracted significant investments and strengthened institutional frameworks, driving the remarkable transformation we see today in the sector.

“From the production level of one million bpd, when we began, we have boosted output to 1.8 million bpd, inclusive of condensates, and continue to aspire for even greater heights.

“Our achievements include attracting foreign investment decisions, winning the bid to host the Africa Energy Bank, sustaining peace across host communities through robust community engagements, and fully deregulating the downstream sector, ensuring constant availability of petroleum products.”

The minister stated that the hindrances to investments in the oil sector, which hitherto scared investors from putting their money in the industry, had been removed, making operations in the country’s oil sector seamless.

He stated, “We have also eliminated bureaucratic bottlenecks in licensing, facilitated capacity building for indigenous players, and introduced numerous reforms too extensive to list.

“Reflecting on this journey, it is evident we have made remarkable strides. From where we started to where we are now, the progress is undeniable. With these accomplishments, the future promises even greater growth and development for the benefit of Nigerians.”