Nigeria produced 1.8 million barrels per day in 2018, well below the country’s capacity, prompting industry watchers to call for urgent new investment in the sector to prevent ongoing declines and over maturity of assets.
This emerges from a recent report released by Africa Oil Week (AOW) and Menas Associates.
At least 68% of the above-mentioned production was offshore and 32% onshore, the report said.
Though the above production of above OPEC’s cap of around 1.71 million barrels per day, the state-owned Nigerian National Petroleum Corporation (NNPC) has long claimed that the 1.8 million b/d figure excluded condensates.
Therefore, NNPC is said to be seeking to reassign some of its production as condensates which are not subject to the quota restriction, AOW and Menas Associates added.
A condensate is a liquid mixture of light hydrocarbons obtained by condensation of certain raw natural gases.
Nevertheless, crude oil exports in this West African nation of 200 million people seem to have recovered amid both improved security conditions in the Niger Delta region and higher oil prices.
Historically, the sector has been disrupted by militant attacks on oil infrastructure and highly organised oil theft in the country’s southern Niger Delta region. Since January 2017, however, there have been a limited number of incidents in the Delta — aside from a small number of kidnappings and small-scale disruptions.
However, the report underlined that with the rise in its own unconventional production which has reduced US demand, India is now Nigeria’s largest oil export market. Oil exports represent nearly 90% of the country’s total exports, according to official figures.
Africa’s economic powerhouse Nigeria is Africa’s biggest oil producer, ahead of Angola and Equatorial Guinea.
Nigeria’s oil and gas sector represents about 65% of government revenues. But corruption and bad governance have led to billions of US dollars disappear from the state coffers, reducing Nigerians to one of the world’s poorest people in the world.
An estimated 87 million Nigerians are believed to be currently living in extreme poverty, or on less than $1.90 a day, according to the World Poverty Clock and the Brookings Institute.
“Our country is rich and we have so much potential to become even richer. If these guys were not corrupt and thieves we should have been living a good life, and not running across Africa to look for money. Where is the oil and gas money ? We don’t see none of it,”, a Nigerian man only identified as Nduka told Daily Afrika in Cotonou, Benin’s commercial capital.
Thousands of Nigerians live in Benin, and most of them are second-hand clothes and shoes traders