The Organization of the Petroleum Exporting Countries (OPEC) has disclosed that Nigeria’s oil producing capacity increased to 1.183 million barrels per day in July. This value is an increase of 7,000 barrels per day when compared to the country’s oil production capacity of 1.176 million barrels per day in June 2022.
At this rate of oil production, Nigeria has failed to beat its production level in the first and second quarter, in which the country recorded 1.376 million barrels per day and 1.205 million barrels per day, respectively.
What you should know
Nigeria is way off the production quota OPEC set for the country in July. While the regulator benchmarked 1.799 million barrels per day, Nigeria’s production averaged 1.183 million barrels per day.
Regardless of the country’s failure to meet the regulator’s production quota, OPEC increased Nigeria’s oil production quota from 1.826 million barrels per day (mbpd) in August 2022 to 1.830 mbpd in September, 2022. However, market analysts are doubtful of Nigeria’s capacity to meet the new quota due to recurring issues including insecurity, pipeline vandalization, oil theft and illegal refining.
The Minister of State for Petroleum Resources, Timipre Sylva, had earlier stated that the country is working to meet OPEC’s quota for the month of August. The Minister stated that the country would implement new initiatives bordering on security, socio-economic issues, etc.