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Highest oil producer in Africa; Nigeria

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By Mercy Kelani

Nigeria at loss as it fails to execute two important LNG projects.

An analysis of industry data has revealed that Nigeria’s crude oil production was less by 263 million barrels. This under-production is a result of the 2022 federal budget which projected the production of 1.88 million barrels of crude oil per day. Aside under-production, the inability of the country to deliver the $20 billion and $9.8 billion Brass and Olokola LNG projects after almost two decades of initiation has caused the country to count its losses from failed projects, notwithstanding the lucrativeness of gas presently.

Economic losses which arose from the pending projects – according to sources and data from industry – include huge revenue and job losses, delayed industrialization, flight of Foreign Direct Investments (FDIs) to surrounding countries and increasing energy poverty in the country. Also, gas is now a global sought-after energy source encouraged by the Russia-Ukraine War and the acceptance of gas as the transition fuel. However, the failed execution of the Brass and Olokola LNG projects have counted Nigeria out of the countries profiting from their LNG revenues.

Many crude oil producers suffered major losses in 2022.

The Senate and House of Representatives, in the last quarter of 2021, fixed the expected daily output of the country for 2022 at 1.88 million barrels of crude oil per day at the rate of $57 per barrel. When calculated, the total expected production from January to November should be 641 million barrels, however, an estimation by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that the realization in the first eleven months of 2022 – the period under review – is only 378 million barrels.

According to NUPRC data, the report further showed that the Bonny terminal production declined from 3.8 million barrels in January to 1.5 million barrels in November. Also, Brass’ output declined from 1.36 million barrels in January to 404,726 barrels in November as well as Qua Iboe which produced 5.3 million barrels in January but reduced to producing 4.4 million barrels in November. Likewise, Forcados’ output which was 7.5 million in January reduced to 6.2 million last month. Escravos’ output, on the contrary, is the only one which increased from 3.7 million barrels in January to 4.6 million barrels in November.

In October, Nigeria drilled 1.024 million barrels of oil per day.

Regardless of the reduced production of crude oil, Nigeria has risen to the top as the highest oil producer in Africa due to improvement in its November OPEC production performance. In previous months, Nigeria took the fourth position while Angola, Algeria and Libya v the leist. During this period, Nigeria struggled with sundry issues which hindered its ability to meet the OPEC oil quota. In October, while Algeria, Angola and Libya drilled 1.060 million barrels, 1.051 million barrels and 1.163 million barrels per day, respectively, Nigeria drilled 1.024 million barrels per day.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, asserted that the country is trying its best to meet its OPEC crude oil production quota of 1.8 million barrels per day by the end of May, 2023. The minister further explained that the federal government would continually aid the improvement of security by the tracks of the major crude oil pipelines and seal every leakage through which oil thieves and pipeline vandals steal crude oil.

Lack of political will contributed to the failed LNG projects.

According to Ginnah, who spoke at a recent capability building workshop for media stakeholders in Lagos, lack of political will by successive administrations has massively contributed to the inability to successfully execute the projects. He lamented on Nigeria’s inability to benefit from the global demand for gas and accompanying opportunities for revenue growth because it was unable to deliver two essential LNG projects that will ensure the pumping of more gas to the market.


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Admin
1 year ago

Highest oil producer in Africa; Nigeria – Nigeria at loss as it fails to execute two important LNG projects. – Express your point of view.

SarahDiv
Member
1 year ago

The federal government has failed in their duties to Nigerians. If that is not resolve, there will be continuous pipeline vandalisation which will lead to oil leakage. With this Nigeria will not be able to meet up with the promise made to OPEC on amount of oil drilled per day.

DimOla
DimOla
Member
1 year ago

Nigeria been the highest producer of crude oil in Africa couldn’t meet up their promised qouta to OPEC because Nigeria has sick and quick fixing. For Nigeria to be infective and meet up with her demands, our federal government need to make living conducive for the masses. It is only that pipeline vandalisation will cease.

theApr
theApr
Member
1 year ago

Along with low output, the nation’s inability to complete the $20 billion and $9.8 billion Brass and Olokola LNG projects almost two decades after their start has forced it to calculate the losses from failed projects.

Tonerol10
Tonerol10
Member
1 year ago

Highest oil producer in Africa without results and usefulness of it. So many countries without oil has done so much and this our thief and fake government with no sympathy has finish us.

Haykaylyon26
Member
1 year ago

Highest oil producer in African Nigeria who is people lacking it, the oil theft is one of reason we are not meet up with the OPEC amount demand we need to make things better this oil is part of source of our income in the country we should try and resolve anything that will be an obstacle that will not want it flow well

Remi1
Remi1
Member
1 year ago

Nigeria has become the top oil producer in Africa despite the decline in crude oil production as a result of an improvement in its OPEC production performance in November.

Iyanu12345ogg
Iyanu12345ogg
Member
1 year ago

we need to make things better this oil is part of source of our income in the country we should try and resolve anything that will be an obstacle that will not want it flow well.

Ultra0711
Ultra0711
Member
1 year ago

The inability to execute this project has land a big blow on the country economy big time. The OPEC objective has also been disorganized now.