Nigeria’s Oil Production Rises in December 2023, Boosting Revenue Prospects

Nigeria experienced a notable surge in oil output, witnessing a month-on-month increase of 7.7%, reaching 1.4 million barrels per day in December 2023, as reported by the Organization of the Petroleum Exporting Countries (OPEC). This upswing from November’s 1.3 million bpd and a year-on-year growth of 16.7% compared to December 2022’s 1.2 million bpd underscores a positive trend in the nation’s oil sector.

OPEC’s Monthly Oil Market Reports (MOMRs), relying on data from secondary sources, positioned Nigeria as the leading oil-producing and exporting nation in Africa, with Equatorial Guinea having the lowest output at 55,000 bpd. Additionally, Nigeria holds the capability to produce between 300,000 and 400,000 bpd of condensate, a high-value light crude akin to Bonny Light in the international market.

Energy analyst Dr. Bala Zakka expressed optimism, stating that the increased oil output bodes well for the execution of Nigeria’s 2024 budget, structured around oil prices of $77.96 per barrel and $1.69 per barrel. Mazi Colman Obasi, the National President of the Oil and Gas Service Providers Association of Nigeria, acknowledged the revenue potential for budget implementation but urged diversification into non-oil revenue sources.

While OPEC’s reports indicated consistent improvement in the last quarter of 2023, rising from 1.2 million bpd to 1.3 million bpd and eventually 1.4 million bpd in October, November, and December, the specific factors behind this positive trend were not detailed. However, observations by Vanguard suggest an improved security situation in the Niger Delta, a crucial region for Nigeria’s oil and gas production.

Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, hinted at surpassing the 2024 budget target of 1.7 million barrels per day during a recent interactive session with stakeholders. Lokpobiri also emphasized the country’s potential to increase crude oil production to two million barrels daily, emphasizing collaboration with stakeholders to enhance Nigeria’s oil and gas sector in the coming year.