The Federal Authorities, on Friday, stated the drop in Nigeria’s crude oil manufacturing was as a consequence of points encountered on the Trans Niger Pipeline, coupled with upkeep actions carried out by some oil firms working throughout the nation.
It, nonetheless, acknowledged that efforts have been on to repair the pipeline, including that this might allow the nation to supply as much as 1.7 million barrels per day of crude oil and condensates.
The Trans Niger Pipeline is a significant oil pipeline in Nigeria that transports crude oil extracted from oil fields in Rivers and Bayelsa States to the Bonny Crude Oil Export Terminal.
It’s operated by Shell Petroleum Growth Firm Joint Enterprise, with a capability of about 180,000 barrels of crude oil per day, which is about 15 per cent of Nigeria’s every day output.
The Trans Niger Pipeline is a crucial a part of Nigeria’s oil infrastructure, nevertheless it has confronted vital challenges lately.
Our correspondent had earlier reported that Nigeria’s crude oil manufacturing witnessed the second consecutive month-to-month decline this yr, because it dropped to 1.231 million barrels per day in March, in keeping with the most recent report from the Organisation of Petroleum Exporting International locations.
Reacting to this on Friday, the Minister of State for Petroleum Assets (Oil), Heineken Lokpobiri, stated the drop in manufacturing was as a consequence of points encountered on the Trans Niger Pipeline.
Lokpobiri disclosed this in a press release issued in Abuja by his Particular Assistant on Media and Communications, Nneamaka Okafor.
The assertion learn partially, “In response to latest issues relating to a shortfall in oil manufacturing in Nigeria through the first quarter of 2024, the Minister of State for Petroleum Useful resource (Oil), Senator Heineken Lokpobiri, assures (Nigerians) that measures are being taken to handle the state of affairs to, not solely restore manufacturing to earlier ranges however to additionally enhance it.
“The minister clarifies that the reported manufacturing shortfall was primarily as a consequence of points encountered on the Trans Niger Pipeline, coupled with upkeep actions carried out by some oil firms working in Nigeria.
“The minister can be happy to announce that the problems have been adequately addressed, and manufacturing is predicted to return to its earlier ranges within the coming days.”
OPEC acknowledged in its newest Month-to-month Oil Market Report for April 2024 that crude oil manufacturing particulars, which it bought by way of direct communication from Nigeria, confirmed that the nation pumped much less oil in March when in comparison with what was produced in February.
Information from the report indicated that Nigeria produced 1.322 million barrels per day of crude in February this yr, however dropped to 1.231mbpd in March, representing a plunge of 91mbpd.
The report additional acknowledged that the nation had produced 1.427mbpd of crude in January, however that was not sustained in February because it dropped in that month, whereas southward oil manufacturing continued in March.
OPEC information, nonetheless, confirmed that the nation’s common crude oil manufacturing within the first quarter of 2024 was 1.327mbpd, greater than the 1.313mbpd common oil manufacturing within the fourth quarter of 2023.
Nigeria’s first-quarter oil output in 2024 was additionally greater than the 1.201mbpd common manufacturing within the third quarter of final yr.
Oil theft and pipeline vandalism have severely impacted Nigeria’s oil manufacturing, inflicting output to fall under OPEC-approved ranges.
In the meantime, Lokpobiri anticipated that “Nigeria’s oil manufacturing, together with condensate, which was roughly 1.7 million barrels per day prior to those developments, will quickly be restored.”
He additionally acknowledged that the Federal Ministry of Petroleum Assets was actively engaged in coverage evolution geared toward maximising the utilisation of all obtainable wells in Nigeria.
“This strategic strategy will allow the nation to ramp up manufacturing, thereby producing important income to stabilise the nation’s overseas trade reserves.
“The elevated income may even empower the federal government to fulfil its commitments to offering important infrastructure, as outlined within the 2024 finances,” the assertion acknowledged.
