Nigeria’s crude production hits 2.081mbpd in August

Nigeria’s robust crude oil production for the month of August has lifted hopes of a faster economic recovery and an impetus for more foreign exchange inflows into the country.
Nigeria produced an average of 2,081,704 million barrels of crude per day in the month of August 2017, including condensates. The country has consequently been invited to a September 24 meeting of the Organisation of Petroleum Exporting Countries, OPEC/non-OPEC monitoring committee overseeing the oil cut deal to explain her production outlook.
This increase in the production level helped a great deal to lift the country’s economy out of recession, as it provided a good volume of foreign exchange.
Based on this development, there are speculations that Nigeria may be asked to put a seal on her production level by the OPEC/non-OPEC monitoring committee, in order to avoid over supply into the global market.
Nigerian’s production, rose 50,000 barrels per day to1.86 million barrels per day (b/d )in the month, as the country’s output continues to rebound from civil unrest.
The country lifted force majeure on loadings of key export grade Bonny Light in August and this has boosted her crude oil push to the global market.
Nigeria and Libya are exempt from OPEC’s landmark production cut agreement, and their recovery over the past few months had led to talks among the coalition on whether the two should be asked to join in on the cuts, although Libya’s setback in August may quell some of that discussion.
The two members’ combined August average output was 480,000 b/d above their level in October, the benchmark month from which OPEC based its production cuts and quotas.
The agreement, which went into force January 1, calls on OPEC and 10 non-OPEC producers, led by Russia, to cut a combined 1.8 million b/d in output, through March 2018 in order to rebalance the market and induce draws of oil in storage.
OPEC’s crude oil output however fell in August for the first time in five months, as outages in Libya interrupted the country’s recent dramatic recovery, more than offsetting gains in Nigeria.
Emmanuel Kachikwu, minister of State for Petroleum Resources, in a podcast recently, suggested that the country’s production was close to full capacity, linking the rise in output to increased investment by foreign companies on relative calm in the Niger Delta oil province.
The facts and figures published by the of office of the minister of Petroleum Resources also disclosed that gas production for that period also hit 7.906 billion standard cubic feet in August, an indication that the power sector may have enjoyed some relative stability in gas supply to generate power.
The volume of Premium Motor Spirit (PMS) or petrol, trucked out daily, according to the facts and figures, was put at 33.56 million litres per day for the month under review.
Other products trucked out in the same period include Automotive Gas oil (AGO) or diesel, 6.18 million litres, Dual Purpose Kerosene (DPK) 1.9 million litres, Aviation Turbine Kerosene (ATK) 0.77, Low Pour Fuel Oil (LPFO) 0.21 million litres.

Olusola Bello