Nigeria’s Crude Oil Output dropped by 1.52m BPD in December 2020 -DPR

Information from the Department of Petroleum Resources, the regulatory body for the Oil industry in Nigeria has revealed that a total of 1.52m bpd of the nation’s crude and condensate output was lost in December 2020 due to production downtown at key export grade Qua Iboe.

Crude production also fell to 1.17 million b/d in December from 1.33 million b/d in November. Condensate production, however, was up slightly, averaging 348,078 b/d in December from 339,920 the previous month.

Loadings of Qua Iboe have been on force majeure since mid-December after they were temporarily halted due to a fire at the Qua terminal, operator ExxonMobil said. Nigeria-based sources said the fire led to production issues for Qua Iboe, and the force majeure on exports remained in place.

Production of Qua Iboe — Nigeria’s largest export grade and popular among refiners globally, with Canada, India, Indonesia, Italy, the Netherlands, Spain and the US, being regular buyers — averaged 49,946 b/d last month, compared with 159,225 b/d in November, DPR data showed.

Exports of Brass River were on force majeure from late November to mid-December, after a sabotage attack on an oil and gas pipeline.

Africa’s largest oil producer saw its output fall steadily in the second half of last year as it came under pressure to make hefty cuts as part of its OPEC+ obligations.

Nigeria has the capacity to produce around 2.2 million b/d of crude and condensate but it pumped around 1.75 million b/d in 2019, according to S&P Global Platts estimates.

That is the lowest output since 2016 when Niger Delta militants repeatedly attacked key oil infrastructure pushing production to as low as 1.4 million-1.5 million b/d at points that year.

The current output cap by OPEC and its nine non-OPEC allies are focused on crude and not condensate.

Under the OPEC+ deal, Nigeria has committed to keeping its crude output at 1.52 million b/d for January and February, 313,000 b/d below its baseline under the deal of 1.829 million b/d.

Platts, one of the secondary sources that monitors compliance, includes Agbami in Nigeria’s crude oil figure as it is marketed as a crude export blend and not a condensate by the state-owned Nigerian National Petroleum Corp. and international oil companies.

Source: S&P Global Platts

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Olusegun Fayose

Olusegun Sunday Fayose, founder of RovingNaija.com is a Marketing Communication executive with experience in Corporate Communication, Public Relations, Branding and Advertising. He is also a seasoned media professional with roots in print, broadcast and online journalism. Segun, who last managed the Group Corporate Communication function of MultiChoice Nigeria, is upbeat that through responsible, fair, accurate and courageous reporting; and the support of readers, followers and patrons, Nigeria takes a step closer to a regime of accountability, fairness and equity in governance.

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