Here is my rewritten version of the report:Nigeria’s Crude Oil Production Continues Downward Spiral, Now at 1.23 Million Barrels Per Day
Nigeria’s crude oil production has experienced its second consecutive monthly decline since the start of 2024, according to the latest Monthly Oil Market Report for April released by the Organization of Petroleum Exporting Countries (OPEC) on Thursday.
Based on direct communication with Nigeria, OPEC revealed that the country’s crude oil production fell to 1.231 million barrels per day (mbpd) in March, down from 1.322 mbpd in February – a drop of 91,000 barrels per day.
The report further highlighted that Nigeria’s crude output had been 1.427 mbpd in January, but this figure was not sustained as production declined in February and continued its downward trajectory in March.
However, OPEC data showed that Nigeria’s average crude oil production in the first quarter of 2024 stood at 1.327 mbpd, higher than the 1.313 mbpd average recorded in the fourth quarter of 2023. The country’s Q1 2024 output was also above the 1.201 mbpd average production in the third quarter of last year.
Oil theft and pipeline vandalism have been major setbacks hampering Nigeria’s oil production, limiting the country’s output and causing it to fall below the volume approved for Nigeria by OPEC. The Nigerian National Petroleum Company Limited (NNPCL) recently reported 155 oil theft incidents in just one week, including 53 illegal pipeline connections and 36 illegal refineries discovered in the Niger Delta region.
The NNPCL provided details of the incidents, which involved the seizure of 32 wooden boats carrying stolen crude and illegally refined products, the arrest of seven vehicles loaded with stolen crude, and the uncovering of 53 illegal connections, 14 cases of pipeline vandalism, and four oil spills across various states.
Oil theft and losses in Nigeria have been described as a national emergency, with the Nigeria Extractive Industries Transparency Initiative (NEITI) revealing that over 208 million barrels of crude oil valued at around $12.74 billion (N4.325 trillion) were stolen through 7,143 pipeline vandalism cases between 2017 and 2021. During the same period, Nigeria spent over N471 billion on pipeline repairs and maintenance.
The persistent issue of oil theft and pipeline vandalism has led some international oil companies to divest from onshore to offshore oil fields, while others have exited the country entirely, dealing a severe blow to Nigeria’s oil production and revenue.
