Crude oil production in Nigeria is averaging as low as 1.64 million barrels a day (mbd iin 2021 as a result of security concerns, regulatory risks further hamper supply outlook.
reports say, key assets like the Qua Iboe, Forcados, Bonny, Bonga, Escravos are facing production challenges.
Nigeria’s oil production growth will remain impeded in 2021 as it faces technical and operational issues, which are being exacerbated by the recent rise in pipeline leaks and sabotage, industry sources and analysts said.
The country’s crude production has been languishing at only two-thirds of its full capacity this year due to these factors along with its obligations under the OPEC+ production cuts.
And, with further fiscal and security uncertainties ahead, the outlook for the country’s oil sector is likely to come under pressure despite the implementation of some reforms, they added.
Nigeria has the capacity to produce around 2.2 million-2.3 million b/d of crude and condensate, but production has averaged around 1.64 million b/d so far in 2021, according to S&P Global Platts estimates.
In the last six months, many of its large oil fields especially those in the Niger Delta like Forcados, Bonny, Escravos, Brass River and Qua Iboe and some offshore fields like Bonga, Usan, EA, have been pumping much below their normal levels due to either technical or maintenance issues.
There has also been a rise in leakages at some of the country’s key pipeline networks. Some of these were because of an increase in pipeline sabotage while others are because of the country’s fragile and aging infrastructure, some of which need urgent rehabilitation work.
In April and May, there were shut-ins by some of the producers using the Nembe Creek Trunk Line to transport their production to Bonny Terminal, due to a couple of leakages on the line, according to an official from the Nigerian petroleum ministry.
