Nigeria’s average daily oil production increased by 7.38% in December 2024, reaching 1.667 million barrels per day (bpd), including condensates, compared to 1.552 million bpd in December 2023. However, production declined by 1.35% month-on-month from November’s 1.690 million bpd, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Peak daily production in December was 1.79 million bpd, with the lowest at 1.57 million bpd.
Cumulatively, December’s oil output stood at 51.69 million barrels, slightly higher than November’s 50.71 million barrels. Forcados Terminal recorded the highest output at 8.49 million barrels, followed by Bonny Terminal (7.78 million barrels) and Qua Iboe (4.15 million barrels). Without condensates, daily production was 1.484 million bpd, falling short of Nigeria’s 1.5 million bpd OPEC quota and the 2024 budget benchmark of 1.7 million bpd.
Challenges and Progress
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, attributed production improvements to reduced regulatory bottlenecks, stakeholder collaboration, and increased investments. He highlighted efforts to boost production from 1 million bpd to 1.8 million bpd and achievements such as deregulating the downstream sector and maintaining peace in host communities.
Despite these gains, pipeline vandalism, oil theft, and illegal refining persist. Shell recorded numerous spill incidents caused mainly by illegal activities, with 675 illegal pipeline connections removed in 2023. These challenges have driven major operators like Shell and ExxonMobil to shift operations offshore.
Clampdown on Illegal Activities
The Nigerian National Petroleum Company Limited (NNPC) uncovered 33 illegal oil connections in the Niger Delta and destroyed 72 illegal refineries in late 2024, arresting 42 suspects. Over 204 theft incidents were recorded during this period, highlighting ongoing security and operational issues.
New Investments
The Petroleum Industry Act (PIA) of 2021 has spurred increased investor interest. In the 2024 Licensing Round, several international and indigenous companies won blocks for hydrocarbon exploration. NUPRC Chief Executive Engr. Gbenga Komolafe described this as a significant step in Nigeria’s oil and gas strategy, offering opportunities across onshore, shallow, and deep offshore terrains.
Despite production hurdles, Nigeria’s oil sector shows potential for growth and transformation, driven by reforms and enhanced collaboration.