Nigeria’s crude oil output rose by 170,000 barrels per day (bpd) in September 2021, signalling revenue increase and more reserves to solve the country’s forex crisis.
This is the outcome of a survey conducted by Reuters on oil output.
According to the survey, the Organisation of the Petroleum Exporting Countries (OPEC) pumped 27.31 million bpd in September, representing the highest figure recorded since April 2020 — with Nigeria posting the biggest oil output gain for the month.
Last month, it was reported that Nigeria’s oil production dropped to an average 1.23 million bpd.
At the time, Shell Petroleum Development Company of Nigeria declared force majeure on Forcados crude oil which limited supply.
Forcados pipeline, which exports an average of 240,000 barrels of crude oil daily, is one of Nigeria’s main crude oil terminals.
Force majeure refers to a clause in contracts that allows both parties to walk out of the contract when an extraordinary event or circumstance beyond the control of the parties happen.
Shell’s decision to declare a force majeure on the oil terminal is reportedly due to “the curtailment of production and suspension of export operations as a result of some sheen noticed on the water around the loading buoy” — indicating a case of an oil spill.
The Department of Petroleum Resources (DPR) has not released September 2021 crude oil and condensate production report.
“We’re seeing over 200,000 bpd higher after Forcados and other problems in August,” a firm that tracks OPEC supply told Reuters.
Despite the increase in output, Reuters reported that Nigeria is pumping almost 100,000 bpd less than its OPEC target as under-investment restrains output.
The decision made by OPEC and its allies, known as OPEC+, to boost output is gradually helping to support oil prices recovery, trading near $80 a barrel and close to a three-year high.
Brent crude, global oil benchmark, stood at $78 a barrel on Friday.
The OPEC+ agreement allows for a 400,000 bpd production increase in September from all members, of which 253,000 bpd is shared by the ten OPEC members covered by the deal, OPEC figures seen by Reuters show.