Nigeria’s oil production lost some momentum in July, with total daily output falling to 1.67 million barrels per day (bpd) from 1.74 million bpd recorded in June.
The latest figures from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) represent a decline of about four per cent.
Despite the drop, Nigeria continued to produce above its 1.5 million bpd OPEC quota for the third straight month.
Production falls after June increase
NUPRC data showed that Nigeria produced an average of 1.505 million bpd of crude oil and about 170,000 bpd of condensate in July.
Combined production reached a high of 1.78 million bpd during the month, while the lowest daily output was about 1.57 million bpd.
The July figure followed production of 1.70 million bpd in May and 1.74 million bpd in June.
Official NUPRC production data also tracks crude and condensate output across Nigeria’s producing streams. (NUPRC)
Erha, Akpo disruptions blamed
According to NUPRC, operational difficulties at the Erha and Akpo fields contributed significantly to the July decline.
The regulator said the disruptions affected production volumes, although operations at most other producing assets remained relatively stable.
Operators reportedly implemented measures aimed at maintaining efficiency and limiting the impact of the challenges.
The latest figures therefore point to a mixed picture: Nigeria is maintaining production above its OPEC quota, but disruptions at major fields continue to affect the country’s overall output.
Government considers changes to crude supply rules
Meanwhile, the Federal Government is considering changes to the Domestic Crude Supply Obligation (DCSO) as it looks to improve access to locally produced crude for domestic refineries.
The proposed changes could give refineries, including the 650,000-barrel-per-day Dangote Refinery, better access to crude feedstock at more favourable terms.
The proposals are expected to be reviewed with industry stakeholders, with the Crude Oil Refinery-owners Association of Nigeria (CORAN) supporting changes that would allow refineries to source crude more directly from producers.
Petrol prices record mixed movement
There was also mixed movement in downstream petroleum prices on Wednesday, August 12.
Petrol prices recorded marginal declines at some depots in Lagos, Calabar and Warri, while diesel prices increased at some locations in Lagos and Port Harcourt.
In Lagos, petrol at Dangote Depot reportedly fell by N9 to N1,172 per litre, from N1,181 previously.
Meanwhile, MRS Depot maintained its price at N1,167 per litre, while African Terminal, Integrated and Pivot depots remained at N1,200 per litre.
Source: Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Petroleumprice.ng.
