Nigeria’s crude oil output declines 11.2% in May due to shut down
Nigeria’s crude production output fell 11.20 percent in May to an average of 1.75 million barrels per day due to the shut and production interruption, the state-oil firm said in a report.
The Nigerian National Petroleum Corporation (NNPC) said in its latest report that the decline in production in the period was due to production disruptions as repair works were carried out on TFP at Forcados while shut down at Brass Clough Creek (CCK) also impacted on production.
“Production was also interrupted at Bonga, Egina, Okono, Akpo, Okwori, Agbami, Qua Iboe and Ima terminals due to pump issues, repairs, scheduled maintenance, loss of power, flare management and community issues,” the oil giant said in the June report.
Nigeria has projected crude oil production of 1.8 mbpd the 2020 revised budget while the Organisation of Petroleum Exporting Countries (OPEC) asked its members and allied to cut output by a record 9.7 million barrels per day to lift prices battered by a demand drop linked to lockdown measures aimed at stopping the spread of the coronavirus.
Nigeria has, however, come short of the production quota by the OPEC+ as it promised to make good the over-production from July to September to compensate for producing more than its quota in May and June.
Nigeria OPEC production quota is, however, excluded of condensate which put the country’s out higher than the figure allocated by the global oil bloc.
The report also indicated that the country’s “three refineries processed no crude and combined yield efficiency is 0.00 percent owing largely to on-going rehabilitation works in the Refineries.
“The declining operational performance is attributable to ongoing revamping of the refineries which is expected to further enhance capacity utilization once completed,” the NNPC said in the report.
The three refineries posted an operating deficit of ₦10.23 billion by May despite the fact that the crude oil processing plants are all under repair during the period.
National Gas production also decline in June 2020 by 0.26 percent at 231.28BCF compared to output in May 2020; translating to an average daily production of 7,709.38mmscfd.
“Likewise, the daily average natural gas supply to gas power plants decreased by 12.75 percent to 728mmscfd, equivalent to power generation of 2,717MW,” NNPC said.