Nigeria’s crude oil production has seen a notable rise in November 2024, recording a 13.3% year-on-year (YoY) increase to 1.7 million barrels per day (bpd), including condensate, compared to 1.5 million bpd in the same month of 2023. Additionally, the nation’s output surged by 10% on a month-on-month (MoM) basis, rising from 1.5 million bpd in October 2024 to the current 1.7 million bpd in November.
This achievement marks the highest oil production level for Nigeria in 2024, according to the latest report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), titled Nigeria Oil Production Output Report. The report also noted that Nigeria had produced 1.6 million bpd, including condensate, in January 2024, before a slight decline to 1.5 million bpd in the following months.
Experts have praised this increase in oil output, considering it a positive development for Nigeria’s 2025 budget, which is based on an estimated oil output of 1.7 million bpd at a price of $75 per barrel.
However, while Nigeria’s oil production has increased, global oil prices have experienced a dip. Brent crude, the global benchmark, fell by 0.11% to $72.06 per barrel, and the price of US West Texas Intermediate crude dropped by 0.20%, settling at $68.23 per barrel as of 09:50 WAT on December 11, 2024.
The decline in oil prices follows a reduction in market fears surrounding the geopolitical instability in Syria. While Syria is not a major oil producer, its strategic location and ties with Russia and Iran make it an area of interest for global oil markets. The potential regime change in Syria had raised concerns about the impact on regional stability, which eased as tensions calmed.
Looking ahead, experts are optimistic that Nigeria’s oil production will continue to grow in the coming years. This expectation is fueled by the recent completion of the Sale and Purchase Agreement (SPA) between Seplat Energy Plc and Mobil Producing Nigeria Unlimited (MPNU). The deal, which includes the sale of ExxonMobil’s onshore oil and gas assets in Nigeria, is expected to boost the country’s production capacity.
In a related development, the NUPRC reported that Nigeria’s oil output, including condensate, had surpassed its Organization of Petroleum Exporting Countries (OPEC) production quota in October 2024, reaching 1.8 million bpd. This achievement underscores Nigeria’s growing role in the global oil market.
As the year progresses, Nigeria’s oil sector is showing signs of recovery, bolstered by strategic asset sales and increasing output, which bodes well for the nation’s economy and future energy landscape.
Leave a Reply