Boost for Naira as Nigeria’s Oil Production Surges to 1.7mbpd after New Crude Grade Discovery
- Nigeria’s crude oil production has risen to about 1.7 million barrels per day due to enhanced security
- The chief of naval staff, Emmanuel Ogalla, disclosed this and said that the Nigerian Navy intensified surveillance on oil installations
- Ogalla’s figures still need to be verified. However, analysts say the move could boost foreign exchange and revenue for Nigeria
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Nigeria’s crude oil output has risen to between 1.6 million and 1.7 million barrels daily due to boosted security measures to prevent oil theft.
Emmanuel Ikechukwu Ogalla, Chief of Naval Staff, disclosed this on Tuesday, August 6, 2024.
Source: Getty Images
Navy intensifies surveillance on oil installations
The Nigerian Midstream and Dowmstream Regulatory Authority (NMDPRA) and Nigeria Upstream Petroleum Regulatory Commission (NUPRC) are yet to confirm Ogalla’s figures.
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Analysts will be on the watchout for OPEC’s oil production report for July to see if Ogalla’s figures and those of the oil cartel will align.
“No one may be disproving Ogalla’s figures for now. However, industry regulators such as NMDPRA and NUPRC have yet to confirm the figures.
“Also, the country's true oil production data will be disclosed in the next OPEC report,” Adeola Yusuf, an energy policy analyst, said.
Ogalla disclosed that Nigeria produced about 1.2 million barrels per day in February.
According to him, security operatives have intensified surveillance and enforcement in the country’s oil-producing areas.
He said:
“Right now, as we speak, the Nigerian Navy has 12 vessels on the sea to protect oil production and stem oil theft. We have arrested over 16 vessels, so far.”
OPEC data reveals Nigeria’s crude oil production
The Naval chief stated that the Navy had blocked channels to sell stolen and illegally refined petroleum products.
According to reports, the minister of petroleum resources (oil), Heineken Lokpobiri, disclosed that Nigeria could potentially produce about 6 million barrels per day with sufficient investment in the energy sector.
He stressed that Nigeria and other African oil-producing countries need more capital for exploration and gas.
Data from the Organisation of Petroleum Exporting Countries (OPEC) shows that Nigeria’s highest crude oil production was about 1.43 million daily barrels in January 2024.
The oil cartel’s Monthly Oil Market Report is based on secondary sources and placed Nigeria’s average daily crude oil production at 1.32mbpd in June 2024, a decline of 10,000 barrels compared to May’s figure of 1.372 million barrels per day.
NNPC seeking another crude-backed loan?
The development comes as the Nigerian National Petroleum Company Limited (NNPC) is reportedly scouting for a new crude oil-backed loan.
Experts see the move as a blow to the Dangote and other refineries across Nigeria that desperately need crude for production.
Dangote, NNPC, and NMDPRA have been fighting over crude oil supply and product quality from the $20 billion Dangote Refinery.
Nigeria begins sale of new type of crude oil
Legit.ng earlier reported that the Nigerian National Petroleum Corporation (NNPC) Ltd had announced the launch of the Utapate crude oil blend, a new grade of crude oil, into the international market.
The oil was produced from Oil Mining Lease (OML) 13, fully operated by NNPC Ltd’s upstream subsidiary, Nigerian Petroleum Development Company (NEPL).
The Utapate crude oil blend began operations in July 2024, and the first cargo was shipped to Spain.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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