Finance

Nigeria’s crude oil production rises by 70,000bpd to 1.42million bpd in May 2022


Nigeria’s crude oil production witnessed increasing production levels in the month of May after multiple laggard months, rising by 70,000 barrels per day and averaging 1.42 million bpd in May.

This was disclosed in the Reuters Crude Oil production Survey released on Tuesday based on Refinitiv Eikon flows data, information from tanker trackers such as Petro-Logistics, and information provided by sources at oil companies, OPEC, and consultants.

Nairametrics reported earlier that according to Reuters’ survey, Nigerian output posted a 40,000bdp decline in April 2022 due to a force majeure remains in place on the Bonny Light export stream.

What the report is saying

Rising above Nigeria’s average output of 1.35mbpd, the survey stated that May’s output of the Organisation of the Petroleum Exporting Countries (OPEC) exceeded the rise planned under a deal with allies for the first time since February, citing higher Saudi and Iraqi supply combined with a partial recovery in outage-hit Nigeria.

  • The 10 members of OPEC bound by the deal pumped 24.73mbpd in May, up 280,000bpd from April and above the 274,000bpd increase called for by the accord. 
  • “The biggest rise in May of 100,000bpd came from Saudi Arabia. 
  • “The second-largest of 70,000bpd came from Nigeria, which loading schedules indicate boosted exports in May, even though key crude stream Bonny Light remains under force majeure.”
  • The report added that the biggest decline was in Libya, where supply dropped by 70,000bpd as unrest continued to curb the country’s output.
  • Output in Iran also fell. Exports declined partly, sources in the survey said because Iran has shipped less oil to China since the start of the Ukraine war as Beijing favoured cheaper Russian crude.” 

What you should know 

  • OPEC announced last month it increased Nigeria’s oil production quota from the 1.735 million barrels per day (mbpd) target approved in May 2022 to a new target of 1.772mbpd for June 2022.
  • This is coming against the backdrop of Nigeria struggling to meet its approved OPEC crude oil quota with an alleged average oil output of 1.24 mbpd in the month of March amid reports of increasing cases of crude oil theft.
  • According to Reuters’ survey, Nigerian output posted a 40,000bdp decline in April 2022, as force majeure remains in place on the Bonny Light export stream.
  • It noted that in spite of the decline in production by Nigeria, OPEC pumped 28.58mbpd in April, up 40,000 bpd from the previous month and short of the 254,000bpd increase called for under the supply deal.



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