…….Country failed to take advantage of an average $75pb
Nigeria is believed to have lost an estimated $487.5 million from oil revenues as officials say force majeure and sabotages led to a decline of 6.596 million barrels of oil in production in December 2021.
A report by OilPrice.com on Monday, citing data from the Nigerian National Petroleum Company (NNPC), said the loss in Nigerian oil production means that the country failed to take advantage of an average $75 a barrel oil, losing nearly half a billion in proceeds.
OPEC records show that Nigeria’s oil and gas sector accounts for about 10% of the country’s gross domestic product (GDP), and petroleum exports revenue represents around 86% of its total exports revenue.
Nigeria has been struggling with force majeure and the inability to ramp up production as part of the OPEC+ monthly increase in quotas. Its production is around 300,000 barrels per day (bpd) below what it should be under the OPEC+ agreement.
For example, Nigeria’s crude oil production fell by 43,000 bpd from November to 1.338 million bpd in December 2021, according to OPEC’s Monthly Oil Market Report (MOMR). Nigeria’s required production for December was 1.666 million, by the OPEC+ deal.
Not only is Nigeria losing oil revenues, but it is also the key contributor to a tighter-than-expected global oil market because of its inability to increase production, OilPrice said.
The International Energy Agency (IEA) noted in its January monthly report earlier this month that global oil supply inched up by just 130,000 bpd in December, to 98.6 million bpd, “as outages in Libya and Ecuador and a smaller than scheduled increase from OPEC+ wiped out much of the expected growth.”
OPEC+ producers delivered total gains of 250,000 bpd last month, well below the allocated amount, and were 790,000 bpd below the group’s target due to under-production in Nigeria, Angola, and Malaysia.
For the first time since the cuts were introduced in May 2020, Russia also pumped below its quota, the agency said.
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