Nigeria’s oil output rose month-on-month, MoM, by 7.7 per cent to 1.4 million barrels per day in December 2023, from 1.3 million bpd, recorded in the preceding month of November 2023.

Year-on-year, YoY, the December output represents 16.7 per cent increase from 1.2 million bpd in the corresponding period of 2022.

The Organisation of Petroleum Exporting Countries, OPEC, disclosed this in its Monthly Oil Market Reports, MOMRs, obtained by Vanguard, yesterday, adding that the data were based on information from secondary sources.

According to the January 2024 MOMR, Nigeria remains the highest African oil producing and exporting nation while Equatorial Guinea comes last with only 55,000 bpd.

However, Nigeria also has the capacity to produce between 300,000 and 400,000 bpd of condensate, light crude that attracts high price like Bonny Light in the international market.

In a telephone interview with Vanguard, a Port Harcourt-based energy analysts, Dr. Bala Zakka, said the improved oil output raises hope on the execution of Nigeria’s 2024 budget that was based on $77.96 per barrel and $1.69 per barrel.

Similarly, the National President, Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, said: “For now, the nation seems likely to generate adequate revenue for the implementation of the budget. But the government should work towards generating funds from non-oil sources.”

However, OPEC, which reports showed consistent improvement in the fourth quarter 2023 to 1.2 million bpd, 1.3 million bpd and 1.4million bpd in October, November and December 2023, respectively, did not provide factors responsible for the positive trend.

Checks by Vanguard pointed to the improved security situation in the Niger Delta, where a bulk of Nigeria’s crude oil and gas are produced.

Recently, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri, had disclosed that oil production in the country would surpass the 2024 budget target of 1.7 million barrels per day.

Lokpobiri disclosed this during a stakeholder’s interactive session on creating value and enabling investments in Nigeria’s oil and gas sector organized by Chevron Nigeria Plc.

The Minister also stated that the country has the capacity to increase crude oil production to two million barrels daily and expressed his commitment to fostering collaboration with stakeholders to enhance the country’s oil and gas sector amidst his ambitious target for the year 2024.(VANGUARD NEWS)