Crude oil: Production rises by 50,000 BPD in a month

Nigeria’s crude oil production grew by 50,000 BPD in a month, from 1.41 million barrels a day average in December 2021 to 1.46 million barrels a day in January 2022, from a monthly output target of 1,683,000 BPD.

The report stated that in total, OPEC production increased by 210,000 BPD for the month of January, citing that compliance with OPEC cuts stood at 132% in January versus 127% in December.

The report revealed that Nigeria’s crude production increased by 50,000 BPD for the month of January, citing that its baseline cut pledge from 2020 stands at 1.829 BPD with outstanding cut pledged at 146,000, achieving 369,000 BPD in cuts from a January output target of 1,683,000 BPD.

Oil giant, Saudi Arabia also increased production according to the survey by 100,000 BPD, from 10 million BPD a day in December to 10.1 million BPD by January.

The report reveals that despite increased production, Nigeria is still not achieving its total output target. This may be boosted by the recent $5 billion to boost upstream capacity.

The Nigerian National Petroleum Corporation Group announced financing with the African Export-Import Bank (AfreximBank).

NNPC and Afreximbank team agreed during the meeting to intensify efforts at deepening investment in Nigeria’s oil sector, including the acquisition of interest in quality upstream oil and gas producing assets.

The NNPC stated that repayment would be done through Forward Sale Arrangement whereby the funds provided will constitute the payment purchase of 90-120 kpd of crude to be delivered to the lender over a period.

Nigeria pumped 500,000 fewer barrels a day than its capacity, as at November 2021, as oil earnings were just over half the government’s target in the first 11 months of 2021, with revenue of just N970 billion.