Nigeria’s oil production rose above its OPEC quota in July, with combined crude oil and condensate output reaching 1.67 million barrels per day (mbpd).
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that crude oil production averaged 1.505mbpd, exceeding the country’s OPEC quota of 1.5mbpd. Condensate production stood at about 170,000 barrels per day.
However, total production fell by four per cent compared with the previous month, mainly due to operational challenges at the Erha and Akpo fields.
Daily production peaked at 1.78mbpd in July, while the lowest output was 1.57mbpd.
Forcados recorded the highest production among Nigeria’s major streams at 322.34 thousand barrels per day (kbpd), followed by Bonny with 303.72kbpd. Qua Iboe produced 158.02kbpd, while Escravos and Bonga recorded 131.41kbpd and 100.23kbpd respectively.
The latest figures point to some recovery in Nigeria’s upstream sector, which has been affected by crude theft, pipeline disruptions, ageing infrastructure and operational difficulties.
Energy stakeholders said higher oil production could increase foreign exchange earnings, strengthen government revenue and support economic growth.
Rasheed Adeleke, an energy stakeholder, attributed the improvement to regulatory reforms, better security in the Niger Delta and renewed investment in the sector. He, however, urged the government to tackle crude theft, oil spills and other structural challenges that could affect production.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said increased oil output could strengthen Nigeria’s external reserves, support exchange-rate stability and give government more room to finance its obligations.
Despite exceeding its OPEC quota, Nigeria remains below its target of producing two million barrels per day by 2027. July’s combined output was about 330,000 barrels per day short of the target.
The Nigerian National Petroleum Company Limited has said the country is working towards reaching 2mbpd by 2027 and 3mbpd by 2030.
Achieving the targets will depend on sustained investment, improved security, reliable evacuation infrastructure and quick resolution of production disruptions.
The development follows President Bola Ahmed Tinubu’s approval of reforms aimed at unlocking up to $50 billion in new deep offshore investment and accelerating delayed oil projects.
