According to an analysis of the government’s oil production report, excluding condensates, the nation’s oil output increased from 1,258,150 barrels per day in January 2023 to 1,306,304 barrels per day in February.
This meant that the country pumped an additional 48,154 barrels of crude per day, for a total of 1,348,312 barrels of oil for the 28 days of February.
According to Statistica, a global statistical firm, the average cost of Brent, the international benchmark for crude oil, in February 2023 was $82.3/barrel.
This means that oil earnings for the month under review increased by $110.966 million (N51.16 billion at the official exchange rate of N461/$). As a result, Nigeria’s oil earnings increased by N51.16 billion in February 2023.
Since last year, the Federal Government has increased efforts to boost Nigeria’s crude oil production and reduce theft by vandals and thieves.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, highlighted how harmful oil theft has been to the country’s oil bottom line, as he stated, “admittedly, one major area of value erosion in the industry is the menace of crude oil theft. Our records indicate that the menace of oil theft has negatively impacted the oil and gas sector for about two decades with attendant huge financial losses to our nation.”
He claimed that the commission, working with various security forces, the Nigerian National Petroleum Company Limited, and host communities, had been able to halt the dreadful trend of hydrocarbon value decimation.
The commission’s chief executive also stated that the commission was focusing on shut-in wells that could be revived and that in that regard, the commission established a committee on June 23, 2022, to conduct an industry-wide study on the reactivation of shut-in strings.
“The committee has submitted its report and includes recommendations categorized into quick wins, medium and long-term initiatives that will enhance national oil and gas production volumes.
Findings from the report revealed that over 900,000 barrels of oil per day can be earned from the quick win interventions, while the medium and long-term initiatives could potentially add 1.2 million barrels of oil per day if properly and fully implemented.”