Energy

Nigeria’s crude oil production increases by 3.63%

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Despite the downtrend  in  global  oil  prices which has  continued  to  affect  the  energy  industry globally, a total of 68.37  million barrels of crude oil and condensate were produced in Nigeria last October representing  an  average  daily  production  of  2.21  million  barrels.  This represents an increase of 3.63 per cent relative to September, 2015 performance.

According to Nigeria National Petroleum Corporation (NNPC) monthly Financial and Operations report for November 2015, of the October, 2015 Production, Joint Ventures (JVs) and Production Sharing Contracts (PSC) contributed about 33.87 per cent  and 40.73 per cent  respectively. While Alternative Funding (AF), Nigerian Petroleum Development Company (NPDC) and Independent accounted for 14.94 per cent, 4.61 per cent and 5.85 per cent respectively.

The NPDC Year to Date cumulative production from all fields amounted to 29,166,708 barrels of Crude oil which translated to an average daily production of 95,943 barrels.

Comparing NPDC performance to National Production, the company’s production share amounted to 4.61 per cent.  NPDC  production  is  expected  to  hit  production  level  of  250,000bp/d  after  the completion of the on-going NPDC re-kitting project.

Production from NPDC wholly operated assets amounted to 8,732,540 barrels (or 30% of the total production) with Okono Okpoho (OML 119) alone producing more than 79% of the NPDC operated Assets or 24.08% of the total NPDC production. Also on the NPDC operated JV assets, in which NPDC own 55% controlling interest, Crude  Oil production amounted  to  11,985,250  (or  41%  of  the  NPDC  total  production).

On the JV assets not operated by NPDC, production level stood at 8,448,918 barrels or 29% of the company production.

Similarly, a total of 247.22 billion  standard cubic  feet  (BCF) of natural  gas  was produced  in the month  of  November  2015  translating  to  an  average  daily  production  of  8.24  billion standard cubic feet per day (bscfd).

According to the report, for the period January to  November 2015, a total of 2,656.08BCF of gas was produced representing an average daily production  of 7951.42 mmscfd  during  the  period.

Production  from  Joint  Ventures  (JVs),  Production  Sharing  Contracts (PSC) and NPDC contributed about 69.89%, 21.88% and 8.22% respectively to the total national gas production. The table and charts below provide details of the national gas production for the period January to November 2015.

On crude oil and condensate lifting & utilization; the report says a total volume of 70.31 million barrels of crude oil and condensate was lifted in the month of October 2015 by all parties. Out of this volume, 25.03 million barrels was lifted by NNPC on behalf of the Federation. This comprises of 18.24 million barrels lifted on the account of NNPC while 6.09 million and 0.70 million was superintended for FIRS and DPR respectively.

Of the 18.24 million barrels lifted on the account of NNPC in October 2015, 12.07 million barrels and 6.17 million barrels were for domestic and export markets respectively. At an average oil price of $47.45/bbl and exchange rate of N195.95/$, the domestic crude oil lifted by NNPC is valued at $572,997,921.89 or a Naira equivalent of N112,278,942,793.37 for the period. The remaining crude oil lifted for export was valued at $305,856,048.03   at an average price of $49.58/barrel. The total value of crude oil lifted on the account of NNPC in October, 2015 was thus $878,853,969.91.
From January to October 2015, a total volume of 640.76 million barrels of crude oil and condensate was lifted by all parties.

In October 2015, NNPC lifted 12,074,800 barrels of Crude Oil for domestic utilization translating to an average volume of 389,509.68 barrels of oil per day in terms of performance. In order to meet domestic product supply requirement for the month of October, 2015 about 5,687.09 barrels of crude oil was processed through Offshore Processing Agreements (OPA), and the balance of 6,387.71 barrels was sold in the export market. No crude was processed in the domestic refineries.

Meanwhile, according to the report, a total  of  2,447 vandalised  points  were  recorded  between  January  and   November  2015,  resulting  in a total loss of  637,550 cubic metres of crude and products valued at N56.68billon.These developments have put NNPC in disadvantaged market position.

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