Nigeria recorded its highest oil production in December 2022, counting from April 2022, according to the latest Platts survey by S&P Global Commodity Insights.
Oil production in Africa’s largest economy is faced with theft that hampers exports and results oil spills and loss of millions of naira.
However, the survey shows volumes rebounded to the highest since April 2022, rising to 1.33 million barrels per day (mbpd) in December and contributing significantly to increased output by the Organisation of Oil Producing Countries (OPEC).
The 13 countries in OPEC and their allies increased output by 140,000 bpd as they pumped 28.98 million bpd in December, up 110,000 bpd from November, led by Nigeria.
Russia and nine other non-OPEC partners added 13.73 million bpd, up 30,000 bpd.
When combined, the alliance produced 42.71 million bpd in December alone.
Platts survey said Nigeria saw major recoveries in its loadings of major grades in Forcados and Brass, and maintenance at the Bonga Field was completed in mid-November, according to The PUNCH.
But, it added, despite the overall increase, the output of the alliance still massively lags in its production targets, with the gap at 1.80 million bpd in December, as most members face technical or financial difficulties in sustaining output.
Production outlook for 2023
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) data shows Forcados in December 2022 had a crude production rate of 6,579,692 barrels, condensate (593,980 barrels), and blended (7,173,672 barrels), against 6,856,88 barrels of blended in November, per The PUNCH.
Brass had a crude production rate of 581,198 barrels, condensate (45,010 barrels), and blended (26,208 barrels) in December 2022, down on 431,672 barrels of blended in November.
Nigerian National Petroleum Company (NNPC) Group Chief Executive Officer Mele Kyari disclosed earlier this month 2.2 million barrels per day of crude could be produced in 2023.
“For us, we see a trajectory of restoring production, including condensates ,within the year. We believe we can hit a target of 2.2 mb/d but our budget target is 1.8 mb/d, but we know that it is practical to do 2.2 mb/d within 2023,” he said.