Nigeria’s Oil Production Hits Highest Volume in 12 Months
With relative peace in the Niger Delta allowing for repairs and resumption of crude oil production at the Forcados terminal in Delta state, Nigeria’s oil output has hit a one-year high.
The Organisation of Petroleum Exporting Countries (OPEC) revealed that global crude oil production increased by 336 thousand barrels per day (tb/d) in the last one year with outputs increasing the most in Libya, Nigeria and Iraq
The report attributed Nigeria’s increased production output to the resumption of loading at the Forcados terminal.
Militant group, the Niger Delta Avengers (NDA) had attacked the Forcados pipeline terminal in February 2016 forcing multinational oil company, Shell – which operated the terminal, to declare a force majeure, a legal clause that allows it to stop shipments at the terminal without breaching contracts.
“Rising output from Nigeria, Libya and the North Sea kept the Atlantic basin well supplied with light sweet crude, weighing on crude values. Nigerian crude production rose to 1.68 mb/d, the highest level in more than one year. This followed the restart of Forcados loadings for the first time since October 2016,” the report said.
OPEC also stated that there had been a drop in oil prices from the beginning of May 2017 because increased production from Libya, Nigeria and US raised worries about excess supply.
“Oil has been weighed down by the market’s impatience with the generally slow pace of the inventory draw down globally, even after major oil producing countries decided at the end of 2016 to reduce oil production by around 1.8 mb/d in the first half of 2017,” it said.
Nigeria’s minister of state for petroleum resources, Dr Ibe Kachikwu had During the 172nd OPEC meeting in Vienna said if production reached the catch point for cuts, it was likely for Nigeria to join other countries in the OPEC production cut, reports The Cable.