Nigeria Sees 4% Dip in Oil Production for July, Still Meets OPEC Quota

The latest figures from the Nigerian Upstream Petroleum Regulatory Commission reveal that Nigeria's crude oil production experienced a decline of four percent in July compared to the previous month. Despite this decrease, the country was still able to meet its Organisation of Petroleum Exporting Countries quota for the third consecutive month. According to the commission, Nigeria produced an average of 1.505 million barrels of crude oil per day in July, which is slightly above its OPEC quota of 1.5 million barrels per day. When including condensate production of about 170,000 barrels per day, the total crude and condensate output stood at 1.67 million barrels per day during the month. The July production level represents a drop from the 1.735 million barrels per day recorded in June, resulting in a reduction of about 65,000 barrels per day or 3.75 percent. The NUPRC disclosed these figures in a statement issued by its Head of Media and Corporate Communications, Eniola Akinkuotu. The statement noted that although Nigeria met its OPEC quota in July, the statistics indicate a four percent decline in production on a month-on-month basis. The daily combined crude and condensate production fluctuated between a low of 1.57 million barrels per day and a peak of 1.78 million barrels per day in July. The commission attributed the decline primarily to operational challenges at the Erha and Akpo fields, which affected production during the month. These disruptions led to a reduction in national crude oil output. However, production activities at other oil-producing assets remained relatively stable despite the disruptions. The NUPRC stated that routine production and crude evacuation activities were largely sustained across the industry. Operators and stakeholders are working to resolve the issues affecting production facilities and restore lost capacity. The breakdown of production by terminals and streams showed that Forcados Terminal recorded the highest output, followed by Bonny Terminal, Qua Iboe Terminal, Escravos Oil Terminal, and the Bonga stream. The Federal Government and NUPRC have emphasized the importance of increasing crude oil production for government revenue, foreign exchange earnings, and investment in the upstream sector.