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HomeTop NewsNigeria’s crude oil production slips again amidst persistent challenges ~ OPEC report

Nigeria’s crude oil production slips again amidst persistent challenges ~ OPEC report

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Nigeria’s crude oil production has witnessed its second consecutive monthly decline, dropping to 1.231 million barrels per day in March, as reported by the Organisation of Petroleum Exporting Countries (OPEC) in its latest Monthly Oil Market Report for April 2024.

The decrease was attributed to reduced production compared to February figures, with data showing a drop from 1.322 million barrels per day to 1.231 million barrels per day, representing a decline of 91 mbpd.

While the first quarter of 2024 saw an average crude oil production of 1.327 mbpd, an improvement over the 1.313 mbpd average in the fourth quarter of 2023, challenges persist in sustaining production levels.

Factors such as oil theft and pipeline vandalism continue to hamper Nigeria’s oil output, resulting in disruptions and falling below OPEC-approved volumes.

Recent reports from the Nigerian National Petroleum Company Limited (NNPCL) underscore the severity of the situation, with 155 oil theft incidents recorded in just one week.

READ ALSO: Oil prices rise as heightened tensions in Middle East raised risk of supply disruptions

The incidents included illegal pipeline connections, discoveries of illegal refineries, and arrests related to oil theft across various locations in the Niger Delta region.

The menace of oil theft has not only affected production but has also inflicted significant environmental damage, with clusters of illegal refineries and oil spills observed in affected areas.

Despite ongoing efforts by the national oil company to combat crude oil theft, the problem persists, leading to substantial financial losses for Nigeria.

According to data presented by the Nigeria Extractive Industries Transparency Initiative (NEITI), the country recorded 7,143 cases of pipeline breakages and deliberate vandalism between 2017 and 2021, resulting in crude oil theft and product losses valued at N4.325 trillion.

The situation poses a grave threat to Nigeria’s oil exploration and exploitation efforts, impacting economic growth and business prospects while undermining the profitability of oil companies operating in the region.

As Nigeria grapples with these challenges, there is a pressing need for concerted efforts to enhance security measures, strengthen regulatory frameworks, and invest in technology to safeguard the country’s oil infrastructure and mitigate losses.

Failure to address these issues could further undermine Nigeria’s position in the global oil market and impede its economic development aspirations.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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