NIGERIA’s crude oil production experienced a slight decline in October 2024, dropping from 1.54 million barrels per day (bpd) to 1.53 million bpd.
This is according to the latest monthly oil production status report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This data, The ICIR reports, contradicts the earlier figure of 1.808 million bpd revealed by the Nigerian National Petroleum Company Limited (NNPCL) and the federal ministry of petroleum resources.
Although the NNPC also said that oil and condensate production in August was 1.7 million bpd, the report by the sector regulator indicated that the country only produced 1.57 million bpd for that month.
This showed a whooping difference of 130,000bpd during the afore metioned month.
The data also notes a marginal increase in crude oil production to 1.33 million bpd in October from 1.32 million bpd in September, aligning with OPEC’s primary source data.
Moreover, the NUPRC report highlights an increase in blended condensates to 44,134 bpd, while unblended condensates declined to 160,672 bpd during the same period.
In total, Nigeria’s crude oil production, including condensates, stood at 1,538,129 bpd in October 2024.
Notably, condensates in crude oil refers to a light hydrocarbon liquid that is typically produced alongside natural gas. When crude oil and natural gas are extracted from underground reservoirs, the hydrocarbons may exist in a gaseous state due to the high temperature and pressure within the reservoir.
However, as the temperature and pressure decrease during extraction and as they reach the surface, some of these hydrocarbons condense into a liquid form, which is known as condensate.
In certain situations, condensate can be blended with heavier crude oil to enhance its flow properties. This process helps reduce the viscosity of the oil, making it easier to transport through pipelines and other infrastructure.
Additionally, condensates are valuable in the energy and petrochemical industries due to their high content of light hydrocarbons, such as ethane, propane, and butane.
These components are essential feedstocks for producing a range of products, including plastics, chemicals, and fuels, making condensate an important resource in global energy markets.
The ICIR reports that the federal government’s budget is largely hinged on revenue accruals from the oil sector with the national budget largely benchmarked on global price.
Earlier in June 2024,the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) set Nigeria’s crude oil production quota at 1.5 million barrels per day (mbpd) until December 2025.
This decision follows the resolutions from the last ministerial meeting on November 30, 2023, where OPEC increased Nigeria’s production level to 1.5 mbpd for 2024.
OPEC confirmed that Nigeria’s production level of 1.5 mbpd will be maintained from 1 January 2025 to 31 December 2025.
The ICIR reports that despite the benchmark, Nigeria has struggled to meet the designated quota as a result of attack on oil facilities in the oil rich Niger-Delta.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.