Nigeria's crude oil production increased to 1.3 million barrels per day in February, the highest in 13 months, according to the Nigerian Upstream Petroleum Regulatory Commission.

Nigeria's Oil Production Rises to 13-Month High in February

Nigeria's crude oil production increased to 1.3 million barrels per day in February, the highest in 13 months, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This figure marks a 39% increase from 937,766 bpd in September 2022 when oil theft was rampant in the country. The NUPRC report shows that the country's crude oil output rose by 48,154 bpd from 1.26 million bpd in January 2023.

Experts attribute the sustained increase in Nigeria's oil production to government reforms and strategic partnerships with oil companies. Uwaye Omijie, a petroleum production engineer at Midwestern Oil & Gas Company, cited tightened regulations on pipeline bunkering in the Niger Delta and successful company mergers as reasons for the surge in production. However, despite the increase, Nigeria's national companies may not be able to match the weight of the international oil companies, according to Omijie.

The country's target used to be 2.2 million bpd, but with IOCs leaving the country, Omijie predicts that Nigeria's oil production will not surpass 1.5 million bpd anytime soon. Nigeria's oil production increase in February was the highest among the Organization of the Petroleum Exporting Countries (OPEC), with the African nation boosting production by 100,000 bpd.

Experts like Ayodele Oni, partner of the Energy Practice Group at Bloomfield LP, attribute the rise in oil production to reduced oil theft along pipeline routes and high oil prices. The Nigerian National Petroleum Company Limited (NNPC) predicts that the country will achieve an oil production level of 1.8 million bpd in the next two to three months, with the company crossing the 1.6 million bpd oil production threshold on February 16.

The increase in Nigeria's oil production is a welcome development that can generate more revenue for the country and meet global oil demand. However, the government must ensure that the trajectory of production increase is sustained by tightening regulations and implementing security surveillance along major crude oil pipelines.