Nigeria’s Records Drop In Oil Production In November As Rig Count Crashes

Richard Ginika Izuora

Nigeria’s effort to meet its production quota recorded a 10 percentage points drop month on month to 239 per cent in November even as the country raised production slightly.

In overall the Organisation of Petroleum Exporting Countries, OPEC+ compliance with oil production cuts rose to 117 per cent  in November from 116 per cent a month earlier, two sources from the group told Reuters, indicating production levels remain well below agreed targets.

Compliance from the 10 OPEC countries participating in the production cuts reached 122 per cent, with participating non-OPEC countries achieving 107 per cent, data seen by Reuters showed.

The International Energy Agency (IEA) said in its December oil market report that OPEC+ missed its production targets by 650,000 barrels per day (bpd) last month, compared with 730,000 bpd in October.

The OPEC+ data shows West African producers Nigeria and Angola continued to struggle to pump at target with Angola’s compliance hitting its highest this year at nearly 300 per cent.

The two countries have failed to produce at targets in recent years due to underinvestment, persistent maintenance issues and an exodus of international energy companies.

Production of Russian oil and gas condensate, the latter being excluded from the deal, has been broadly stable in December versus November.

Russian Deputy Prime Minister Alexander Novak has said the country’s oil production will reach pre-pandemic levels by May 2022.

Oriental News Nigeria further reports that Nigeria’s crude oil exploration suffered a setback as the rig count, a global index for measuring activities in the upstream sector, decreased by 38 per cent to 80 in the first 11 months of 2021, from 129, recorded in the corresponding period of 2020, according to the reports by OPEC.

During the period under review, activities appeared on the low ebb in April with just five rigs in operation, but it quickly rose to 11 in August and September, before dropping consistently to seven in November 2021.

Other African nations, especially Algeria and Libya did well at 247 and 140 rigs respectively during the period showing they would likely build additional oil reserves, capable of leading to increased production capacity.

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