*As country’s oil production statistics contradict
Lagos — Economic tension could heighten in Nigeria going by the recent drop in its crude oil production by 92,000 barrels per day in May, according to data from OPEC quoting secondary sources.
The country gets major revenue from the export of crude oil, through which it funds its national budgets, with this year’s set at N8.92 trillion, production of 2.3 million per day, and at $60 per barrels.
However, the targeted production may be at risk as to the Organization for the Petroleum Exporting Countries data said Nigeria’s output slide from 1,825b/d in April, to 1,733b/d last month, a difference of 92,000 b/d.
Reason for the drop was not given however, the country held its major elections in the months running into May when several national holidays and memorials were also observed across the states.
Militancy had also subsided in the Niger Delta for some years now.
No clue from rig counts
If statistics from the secondary sources is anything to go about, then, such claim of a drop in production is not supported by the number of rig counts.
According to OPEC’s data, Nigeria’s rig count has remained on 14 since the first quarter of 2019. The country’s rig count was at 15 as at third quarter of 2018, dropping to 12 in the fourth quarter, then rising to 14 by the first quarter of this year till now.
Iran has the highest rig count in OPEC, 157 however, its oil production and exports are being threatened by sanctions from the U.S over its nuclear program. While OPEC appears laid back to meddle, Russia, last week, offered to help the country with an export of its crude oil.
Equatorial Guinea has the lowest rig count in OPEC- just one.
The controversy in data
Earlier this month, the country’s state oil company, NNPC, said Nigeria had attained its set crude oil production target of 2.3mb/d for the year- this includes condensates.
On the other hand, OPEC’s data from direct sources negated those supplied by secondary sources.
Statistics from direct sources said crude oil production in the country went from 1,713b/d in April, to 1,754b/d in May, an increase of 41tb/d.
Either way- 1,733b/d or 1, 754b/d, Nigeria’s production is still within the confines of its share of 1800b/d from OPEC under the cut deal. Nigeria officially produced between 2.3-2.4mb/d before the cuts.
Oil prices rested at $65. 35 per barrel on Sunday.