Oil Production Increased to 1.35m bpd in August, as Reported by OPEC

According to the September Monthly Oil Market Report published by the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production experienced a modest increase from 1.307 million barrels per day (mbpd) in July to 1.352 mbpd in August.

OPEC shared that the average daily crude oil production experienced a slight increase of 45,000 barrels per day, as per the information directly provided by the Nigerian government.

It is worth noting that this report contradicts the recent claims made by the Federal Government, which suggested that daily crude production was approaching 1.6 mbpd.

During his nationwide broadcast on August 4, President Tinubu had stated that oil production had increased to 1.6 mbpd in July, attributing this growth to the reforms implemented in May to address the Petroleum Industry Act.

“Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act.

“Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve,” the president said in August.

On July 26, Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, announced that daily oil production reached 1.61 million barrels in July. This announcement was made during a two-day public and investigative hearing on oil theft and losses held by the House of Representatives Special Committee.

“As of July 23, 2024, Nigeria’s average daily production stands at 1.61mbpd,” he disclosed.

OPEC's report revealed that Nigeria's oil output for July was recorded at 1.30 million barrels per day, as per data provided by the Nigerian government.

In May, the country's daily oil production further declined to 1.25 million barrels per day, despite assertions from the Nigerian National Petroleum Company Limited that production levels were approaching 1.7 million barrels per day.

OPEC's figures indicated a loss of 30,000 barrels per day, with crude production decreasing from 1.28 million barrels per day in April to 1.25 million barrels per day in May.

Previous reports suggested a slight recovery in Nigeria's daily oil production in April, which increased from 1.23 million barrels per day in March to 1.28 million barrels per day, according to OPEC.

The organization, whose data aligns with that of the NUPRC, noted that Nigeria's oil production saw an increase of 50,000 barrels per day in April following a period of decline.

The country's crude output had previously dropped from 1.32 million barrels per day in February to 1.23 million barrels per day in March, with production also falling from 1.427 million barrels per day in January to 1.322 million barrels per day, based on direct sources.