Business and Economy

Oil Output averaged 1.23 mb/p in 2023

The January 2023 monthly oil market report from the Organisation of Petroleum Exporting Countries (OPEC) reveals that Nigeria’s oil production averaged 1.23 million barrels per day (mb/d) in 2023. This represents an 8.8 percent increase (0.1 mb/d) compared to the average of 1.13 mb/d produced in 2022. Breaking it down by quarter, the highest output was observed in Q42023, averaging 1.31 mb/d, followed by Q12023 with an average of 1.27 mb/d. The lowest output was recorded in Q22023, averaging 1.14 mb/d. T

he impressive performance in the fourth quarter was attributed to the introduction of the Nembe crude oil grade by the NNPC in November 2023. Despite the increase in oil production in 2023 compared to the previous year, Nigeria’s output fell short of OPEC’s quota of 1.7 mb/d and the 2023 budget target of 1.69 mb/d. Nigeria’s consistent failure to meet OPEC’s quota over the past decade led to a reduction in the 2024 quota to 1.38 mb/d, highlighting the urgent need to enhance oil production in the country.

As global oil demand is expected to rise in 2024, Nigeria must prioritize efforts to revive inactive oilfields and implement new security measures to combat vandalism, illegal activities, and leakages associated with bunkering. These actions will not only attract investment into the sector but also boost oil production.

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