Oil production shortfall losses rise to $2.65b in August, from $241.77m in July
By Jeph Ajobaju, Chief Copy Editor
Oil output shortfall losses rose to $2.658 billion in August, massively dwarfing $241.77 million in July, as oil facility vandalisation, production shut-ins, and oil theft remain in play and expanding.
Figures posted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) show average 972,394 barrels per day (bpd) production in August, compared with 1.083 million bpd in July.
The August data is 857,606 barrels short of 1.83 million bpd quota allocated to Nigeria by the Organisation of Petroleum Exporting Countries (OPEC).
At the average price of $100 per barrel, Nigeria lost $85.76 million per day which totalled $2.658 billion in August.
NUPRC data shows that condensate, which is not part of OPEC quota, was 207,052 bpd.
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Oil production hampered
Oil production is hampered by oil theft, illegal refining, and production shut-ins.
Oil and gas workers last week protested against the rising crude theft in the Niger Delta and asked the federal government to take action against the criminals.
The workers, who marched in Abuja under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said companies in the industry are struggling to stay afloat due to loss of revenue, per Vanguard.
$241.77m oil revenue lost in July
Nigeria lost $241.77 million (N101.39 billion) revenue in July as its crude oil production dropped by 2.3 million barrels compared with June, gleaned from figures compiled by OPEC.
The Monthly Oil Market Report for August 2022 released by OPEC said based on direct communication figures, Nigeria’s output slashed by an average 74,000 bpd which rounded up to 2.3 million barrels in the 31 days in July.
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OPEC confirmed the average price of Brent crude, the global benchmark for oil, was $105.12 per barrel in July.
Which means with a drop of 2.3 million barrels in output, Nigeria lost $241.77 million or N101.39 billion (at the official exchange rate of N419.37/$) in July.
OPEC figures also show Nigeria’s oil production fluctuated between 1.024 million bpd in May, up 1.158 million bpd in June, and down 1.084 million bpd in July.
