Nigeria struggles to meet OPEC quota of 1.7 million barrels per day

0

Nigeria is currently struggling to increase production to meet OPEC quota levels and may have to do so at least until next year.

Even then, underinvestment and nagging maintenance issues continue to hamper production, industry sources said.

OPEC’s monthly report for September showed that the country’s production in August fell from 85,000 bbl / d to 1.239 mb / d, the lowest since this year, from 1.323 mb / d in July 2021, losing about 2.8 million barrels during the month, making production last month.

Growing production in Nigeria, Africa’s largest oil producer, according to recent data, is proving a major challenge due to infrastructure issues and technical difficulties, leading to shutdowns. In addition to the above issues, there have also been instances of community or worker protests, which continually disrupted operations, resulting in severe losses.

Available data indicates that the Nigerian National Petroleum Corporation (NNPC) and its partners lost 6.035 million barrels of crude oil during emergency shutdowns the previous month. In its August presentation to the Federation Accounts Allocation Committee (FAAC), the company recorded 32 such incidents at its facilities across the country.

A breakdown of the losses, according to the document, indicated that the largest combined shortage of 1.62 million barrels came from Qua Iboe, with 200,000 barrels due to the shutdown in production resulting from the management of flares and the low pressure at the wellhead. An additional 530,000 barrels were lost due to shutdowns at Qua Iboe due to tank problems, 650,000 barrels due to production reduction as reported by the Department of Petroleum Resources (DPR) as well as a loss of 240 000 barrels due to a gas leak on one of the assets.

This was followed by losses from the Forcados facility, which lost 200,000 barrels, 84,000 barrels, 30,000 barrels and 80,000 barrels respectively on different days, for reasons ranging from repair of leaks, problems tank top, fire and the declaration of force majeure.

Forcados continued its closures, losing an additional 405,000 barrels of crude oil on the Uzere / Afisere / Kokori axis following a closure following protests by community workers as well as a loss of 80,000 barrels due to fire . On a related note, Anyala Madu lost 105,000 barrels, Bonny suffered total shutdowns of 335,000 barrels, Ugo Ocha lost 30,000, the Okono shutdown resulted in the loss of 96,000 barrels, while that Sea Eagle lost 750,000 barrels. Usan lost 585,000 barrels, Brass lost 200,000 barrels, Erha lost 230,000 barrels, and Yoho lost a total of 280,000 barrels during the month.

Likewise, Agbami lost 630,000 barrels during the month, Egina lost 70,000 barrels of crude, Pennington lost 195,000 barrels in total, while Ima recorded a loss of 30,000 barrels during the month under review. It’s unclear whether current challenges with Nigeria’s oil infrastructure will be resolved in September, but OPEC data showed the country had already been allocated 1.614 barrels per day for the month.

Due to Nigeria’s inability to meet its quota, in addition to the challenges in Angola, OPEC produced around 10% less than its overall quota, but kept the production of its 13 members at around 27.11 million. barrels a day in August. But Iran, Venezuela and Libya continue to be excluded from the OPEC production quota deal, which has led to continued stability in the oil market.

In April of last year, OPEC and its allies known as OPEC + embarked on production cuts in a bid to save the global oil industry, which at one point hit the negative territory mainly due to the COVID-19 pandemic and the oil price war between Russia and Saudi Arabia. If Nigeria, Angola and other countries are unable to meet production due to an accumulation of technical problems resulting from years of investment constraints and market supply remains in short supply, countries with spare production capacity, notably Saudi Arabia, Iraq and the United Arab Emirates could be called upon to fill the gap.


Source link

Leave A Reply

Your email address will not be published.