A recent report of the Organization of the Petroleum Exporting Countries has revealed a plunge in Nigeria’s crude oil production in December 2021. This is a loss of about N74.51bn in oil earnings.
According to data from OPEC, Nigeria produced an average of 1.19 million barrels per day in December, down from 1.26 million bpd in November, based on direct communication.
This means an average daily loss of 78,000 barrels was recorded in December, translating to a total loss of 2.42 million barrels in the month. For many months Nigeria has been struggling to meet her OPEC quota.
The average price of Brent, the international benchmark against which Nigeria’s oil is priced, has been revolving around $74.17 per barrel. At the official exchange rate of N415.45 to a dollar, it implies that the loss of 2.418 million barrels of crude oil in December reduced the country’s earnings by about N74.51bn.
Further analysis of OPEC’s latest report indicated that in the first quarter of 2021, Nigeria’s oil production stood at an average of 1.312 million bpd.
This moved up to an average of 1.34 million bpd in Q2, but the momentum could not be sustained, as the country’s crude oil production dropped to 1.27 million bpd in Q3.
OPEC said the plunge in oil production in the West African nation persisted in the fourth quarter of last year, dropping to an average of 1.233 million barrels daily in the last quarter.
Aside from the menace of pipeline vandalism in the Niger Delta, the continued oil production plunge in the last quarter of 2021 might not be unconnected to the oil leak recorded in Santa Barbara, Nembe, Bayelsa State.
Crude oil revenue losses in Nigeria have lingered due to various challenges in the sector despite efforts.
Recently, over 112 illegal refineries were discovered in the creeks of Ikwerre Local Government Area of Rivers State.
