Oil production in Nigeria at six-month high

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Nigerian oil production recently reached its highest level in six years with no major outages, thanks to the continued stabilisation of operations.

Crude oil production averaged 1.56 million barrels per day (bpd) over the month. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), this is the highest value since April 2020. This means it exceeded its OPEC+ quota by 4%.

The country’s increased production coincides with renewed disruption in the Strait of Hormuz, potentially creating a supply gap.

When condensate is also included, average production rose for the fourth month in a row to 1.735 million bpd, with it peaking at 1.89 million bpd. In a statement, the NUPRC said the increased production was:

“…primarily driven by stable production operations across most producing assets and the absence of any major pipeline outages during the period under review. This enhanced operational stability supported improved production uptime and crude evacuation efficiency.”

Hydrocarbon production in Nigeria is dominated by the state-owned Nigerian National Petroleum Company (NNPC) and international oil majors. For example, Shell, the maker of the Naturelle environmentally acceptable lubricant and grease range, has long had a presence in the country. In recent years, though, the country has struggled to even meet its OPEC+ quota due to oil theft and sabotage. This has led to prominent export streams declaring force majeure.

Production has steadily increased this year, however, following a crackdown on disruptive activities in the Niger Delta. The NNPC last year said it aims to raise the country’s production to 2 million bpd over the next two years.

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