Nigeria’s oil production continued its monthly rise that started in September last year, as latest data from the Federal Government showed that it rose to a high of 1,306,304 barrels per day in February 2023, increasing the country’s oil earnings by N51.16bn.
An analysis of the government’s oil production report, excluding condensates, indicated that the nation’s oil output rose from 1,258,150 barrels per day in January 2023 to the 1,306,304 barrels daily recorded in February.
This showed that the country pumped an additional 48,154 barrels of crude daily, translating to an increase of 1,348,312 barrels of oil for the 28 days in the month of February.
The average cost of Brent, the international benchmark for crude oil, in February 2023 was $82.3/barrel, according to figures obtained from Statistica, a global statistical firm.
This implies that oil earnings for the month under review went up by an additional $110.966m (N51.16bn at the official exchange rate of N461/$). Hence, Nigeria’s oil earnings rose by N51.16bn in February 2023.
The oil production report, obtained by our correspondent from the Nigerian Upstream Petroleum Regulatory Commission in Abuja on Friday, also indicated that the country’s output for both blended and unblended condensates, increased last month.
The report showed that blended condensate increased from 48,978 barrels per day in January, to 51,664 barrels daily in February this year.
For unblended condensate, figures from NUPRC indicated that it rose marginally to 189,751 barrels daily last month, after posting 187,180 barrels in the preceding month of January.
Condensate is a mixture of light liquid hydrocarbons, similar to a very light crude oil. It is typically separated out of a natural gas stream at the point of production when the temperature and pressure of the gas is dropped to atmospheric conditions.
The Federal Government, since last year, intensified efforts to shore-up Nigeria’s crude oil production and reduce its theft by vandals and thieves.
“Admittedly, one major area of value erosion in the industry is the menace of crude oil theft. Our records indicate that the menace of oil theft has negatively impacted the oil and gas sector for about two decades with attendant huge financial losses to our nation,” the Chief Executive, NUPRC, Gbenga Komolafe, stated recently.
He said the commission, in collaboration with the various arms of the security forces, the Nigerian National Petroleum Company Limited and the host communities, had been able to suppress the ugly trend of hydrocarbon value decimation.
“Now, our nation has continued to record good dividends of these collaborative efforts as production figures are progressively increasing. The January 2023 volume is approximately 1.5 million barrels per day of oil and condensates.
“It is expected that this number will continue to increase as further measures are introduced and sustained to remove all illegal connections that aid crude oil theft,” the NUPRC boss stated, while delivering an industry presentation recently.
Komolafe said the commission was also focusing on shut-in wells which could be revived, adding that in pursuance of this, the commission inaugurated a committee on June 23, 2022, to conduct industry-wide study on reactivation of shut-in strings.
“The committee has submitted its report, and includes recommendations categorised into quick wins, medium and long-term initiatives that will enhance national oil and gas production volumes.
“Findings from the report revealed that over 900,000 barrels of oil per day can be earned from the quick win interventions, while the medium and long-term initiatives could potentially add 1.2 million barrels of oil per day if properly and fully implemented.
“The total number of strings that need to be revived is also known and we have commenced engagement with the relevant operators to operationalise the initiative,” Komolafe stated.