Nigeria’s oil production slumps to 1.02m bpd — lowest in over two years

Nigeria’s oil production dropped in May to an average of 1.02 million barrels per day (bpd) from 1.22 million in April 2022.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in its latest crude oil and condensate production data for May 2022.

Checks by TheCable showed that the figure was the lowest volume recorded so far this year, according to available data from NUPRC. 

The figure represents a 16.39 per cent dip from the country’s oil output in April 2022 and a 23.88 per cent decrease in the corresponding month of 2021. 

Again, Nigeria’s oil output has decelerated stealthily due to supply disruptions, waning investments, and oil theft, among others. 

In January, February and March, the country did 1.39 million bpd, 1.25 million bpd and 1.24 million bpd, respectively.

It consistently failed to meet the production quota set by the Organisation of Petroleum Exporting Countries (OPEC). Recently, the oil cartel ramped up its oil production target. In the era of over $100-a-barrel crude oil prices, the country will not only lose out on earnings but continue to spend more on the underpriced sales of petrol, known as petrol subsidy.

TheCable had reported that fixing Nigeria’s moribund refineries, pumping more oil and overhauling the oil sector could help the country benefit from high oil prices.  It currently projected oil production volume at 1.6 million barrels per day and oil price pegged at $73 per barrel in the revised 2022 budget.