Nigeria’s Oil Output for October Reported Lower Than Federal Government Figures, Says OPEC

By DAYO ADESULU

Abuja, Nigeria — The Organization of Petroleum Exporting Countries (OPEC) reported that Nigeria’s crude oil production, excluding condensates, was 1.434 million barrels per day (bpd) in October 2024. This estimate is notably lower than the Nigerian Federal Government’s reported figure of 1.8 million bpd, which includes an estimated 250,000 bpd of condensate output. According to the government, Nigeria’s crude oil production for October stands at approximately 1.55 million bpd.

Discrepancy in Data Sources

OPEC’s November 2024 Monthly Oil Market Report (MOMR) highlighted that its figures are based on secondary data sources. However, when considering data from direct sources, OPEC put Nigeria’s crude output at an even lower figure of 1.333 million bpd, marking a slight 0.6% increase from the 1.324 million bpd reported in September 2024. This creates a substantial 226,000 bpd gap between OPEC’s and the government’s reported figures.

Nigeria: Africa’s Top Oil Producer Amid Production Challenges

Despite the discrepancies, OPEC noted that Nigeria continues to be the leading oil producer in Africa, with an output of 1.434 million bpd in October, while Sudan reported the continent’s lowest output at 28,000 bpd. Nigeria’s increased production was attributed to ongoing improvements in production stability alongside Libya and Congo.

Pipeline Vandalism and Crude Oil Theft: Key Concerns for Nigeria’s Energy Security

Addressing Nigeria’s oil sector challenges at the Nigerian Association of Petroleum Explorationists (NAPE) conference, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, emphasized that crude oil theft and pipeline vandalism are the most significant threats to Nigeria’s energy security. In his presentation, “Resolving the Nigerian Energy Trilemma: Energy Security, Sustained Growth, and Affordability,” he called for substantial oil and gas projects coupled with enhanced security strategies, emphasizing partnerships with host communities.

“To tackle the sector’s challenges effectively, the NCDMB will work with stakeholders to dedicate one week annually to finalize new project agreements,” Ogbe stated. This initiative aims to accelerate investment decisions, encourage adherence to timelines, and foster collaboration within the industry.

Fast-Tracking Investments Through Strategic FIDs

Engr. Ogbe highlighted that final investment decisions (FIDs) on new projects will be prioritized through this annual event, catalyzing development in Nigeria’s oil and gas industry. He expressed confidence that the collaboration between stakeholders and NCDMB would facilitate the objectives of the Presidential Directives issued in March 2024, fast-tracking contract cycles, and incentivizing investments in the sector.