Nigeria’s oil production rises to 1.57M barrels per day
Nigeria’s crude oil production has seen a significant boost, with an increase of 36,983 barrels per day (bpd) in August 2024. The country’s output rose from 1.53 million bpd in July to 1.57 million bpd last month, according to the latest report from the Nigerian Upstream Petroleum Regulatory Authority (NUPRC). This surge in production offers a glimmer of hope for the nation’s oil sector, which has been plagued by issues such as pipeline vandalism, crude oil theft, and illegal refining, particularly in the oil-rich Niger Delta region.
The NUPRC’s report, titled “Crude Oil and Condensate Production – August 2024,” provides a detailed breakdown of the country’s output. It reveals that Nigeria produced 1.3 million barrels per day (mb/d) of crude oil, 55,300 bpd of blended condensate, and 163,693 bpd of unblended condensate, bringing the total production to 1.57 mb/d for the month.
This marks a continuation of fluctuating oil production throughout the year, as the country grapples with external challenges affecting its energy sector. In June, Nigeria’s output stood at 1.5 mb/d, while in May and April, the figures were 1.4 mb/d. March saw an uptick to 1.43 mb/d, with February recording 1.53 mb/d. The highest production level this year was recorded in January at 1.64 mb/d.
Despite the positive news of increased production, Nigeria’s oil industry continues to face significant hurdles. The long-standing issues of pipeline vandalism, crude oil theft, and illegal refining have hampered the nation’s ability to maximize its oil potential. These illicit activities have not only disrupted production but also led to significant revenue losses for the government.
In response to these challenges, the Nigerian National Petroleum Company Limited (NNPCL) has intensified efforts to combat crude oil theft and related criminal activities. Just last week, NNPCL announced that 25 suspected crude oil thieves were arrested by security operatives in the Niger Delta region. The arrests were part of a broader crackdown aimed at curbing the illegal activities that have long undermined the country’s oil industry.
A recent NNPCL documentary, titled “War on Crude Oil Theft,” detailed the security operations conducted from August 31 to September 6, 2024. During this period, security forces uncovered 63 illegal crude oil connections across various parts of the Niger Delta. The operations involved a coalition of security firms, including Tantita Security Services, Shell Petroleum Development Company (SDPC), Pipeline Infrastructure Nigeria Ltd, Manton Engineering, Heirs Energy Ltd, Oando PLC, NNPCL’s Command and Control Centre, and government security agencies.
The documentary highlighted the scale of the problem, revealing that 302 incidents of oil theft and pipeline vandalism were recorded during the review period. Of these, 48 incidents occurred in deep blue waters, 81 in the central region, 134 in the eastern region, and 39 in the western region of the Niger Delta.
NNPCL has pledged to intensify its efforts to stamp out crude oil theft and pipeline vandalism for good. The company’s documentary revealed several key successes in its ongoing operations across the Niger Delta, particularly in Bayelsa and Rivers States, where illegal crude oil activities are rampant.
In Bayelsa State, security operatives swiftly repelled pipeline attacks in areas such as Bobokiri, Kwokwokiri, Efonosa, Nembe, and Kusho. These efforts were part of a coordinated strategy to protect the country’s critical oil infrastructure from sabotage and theft.
In Rivers State, authorities uncovered secret storage locations for stolen crude oil in Okrika 6 and Guguma South East. The operation also resulted in the seizure of illegal crude oil in Oliobiri and Kaima, Bayelsa State. The documentary revealed that law enforcement agencies apprehended a vehicle filled with stolen crude oil packed in jerry cans in Rivers State, and the driver was arrested before he could escape.
One of the most notable discoveries occurred on the 8th of September 2024, when a joint security team comprising Manton Engineering Company, Tantita Security Services, the Nigerian Army, and the Nigerian Security and Civil Defense Corps uncovered a large wooden boat transferring crude oil from a barge named AGSO 1 at Channel One Flow Station within the OML 18 Operating Area. The operation, conducted during a night patrol, was based on credible intelligence and marked a significant victory in the fight against crude oil theft.
The documentary revealed that the wooden boat had been receiving crude oil from the barge, with the intention of transporting it to an illegal loading site. Five speed boats, used to tow the wooden boat, were detained by security forces. The particulars of the boat and barge involved in the operation have been seized, and further investigations are underway.
NNPCL’s renewed commitment to eradicating crude oil theft is backed by the cooperation of several key stakeholders, including security agencies and private security firms. The collaborative efforts between NNPCL, the Nigerian military, and security contractors like Tantita Security Services have yielded positive results, with numerous illegal oil operations uncovered and disrupted in recent months.
In the documentary, NNPCL emphasized that there is no backing down in the war on crude oil theft. The company’s management has made it clear that the fight will continue until the menace is completely eradicated. NNPCL’s proactive stance is seen as crucial to safeguarding the country’s oil revenue and ensuring the long-term sustainability of its oil industry.
Crude oil theft has had devastating economic consequences for Nigeria, which relies heavily on oil exports for government revenue and foreign exchange earnings. The scale of the theft has been alarming, with estimates suggesting that Nigeria loses billions of dollars annually due to stolen crude oil. These losses have also strained the government’s ability to fund critical infrastructure projects and social programs.
NNPCL’s ongoing crackdown on oil theft is seen as a vital step toward restoring the integrity of Nigeria’s oil industry. By curbing the illegal activities that have plagued the sector, the government hopes to boost production, increase revenue, and strengthen the economy.
With crude oil production on the rise and a renewed focus on tackling the challenges of theft and vandalism, there is cautious optimism about the future of Nigeria’s oil industry. The government’s commitment to implementing reforms, improving security, and enhancing regulatory oversight is expected to create a more stable and sustainable environment for oil production.
However, experts warn that more needs to be done to address the underlying causes of oil theft, including poverty and unemployment in the Niger Delta region. Long-term solutions will require a comprehensive approach that combines economic development initiatives with effective law enforcement and community engagement.
In conclusion, Nigeria’s oil production rise in August 2024 is a positive development, but the fight against crude oil theft remains critical to the country’s economic recovery. NNPCL’s ongoing operations, coupled with government reforms, offer hope for a brighter future for Nigeria’s oil sector and its economy.
