Oil production rises by 0.8% to 1.25 mbd

Nigeria’s oil production sky rocketed marginally in September to an average of 1.25 million barrels per day from 1.24 million the previous month.

This disclosure was made by the Department of Petroleum Resources (DPR) on the 2021 crude oil and condensate production.

According to the report, the increase represented 0.8 per cent from the August production figure — but still among the lowest since January 2021.

 

The production output is in contrast with the Reuters survey that oil output rose by 170,000 barrels per day (bpd) in September 2021.

 

By implication, the development would continue to affect the nation’s crude exports and foreign earnings.

 

On Monday, vice-president Yemi Osinbajo said the country’s low oil production affected earnings and revenue for the government as projected in the 2021 budget.

Speaking at the midterm retreat of President Muhammadu Buhari’s second tenure, Osinbajo said the various shutdowns in some of the wells contributed to low production and impacted revenue.

 

“Revenue, of course, improved despite oil production issues. Although much lower than projected revenue in the budget due to problems in oil production,” Osinbajo said.

“We are producing less than our OPEC quota.

“Shutdowns or shut-in in some of the wells, and the various problems of getting them back up have generally tended to reduce our oil revenue as you see in the GDP report.”