In a notable shift, Libya has surpassed Nigeria to become Africa’s leading crude oil producer for the month of March, as revealed by data from the Organisation of Petroleum Exporting Countries (OPEC).
According to the April 2024 Monthly Oil Market Report (MOMR) released by OPEC, Libya recorded a daily crude production of 1.24 million barrels in March, marking a significant increase of 5.7% from February’s output of 1.17 million barrels.
Meanwhile, Nigeria experienced a decline in production, registering an output of 1.23 million barrels per day in March, compared to 1.32 million barrels per day in February. This decline represents Nigeria’s lowest production rate since July 2023.
The drop in Nigeria’s oil production underscores the challenges facing the nation’s oil sector, including infrastructural limitations, security breaches in oil-producing regions, and operational disruptions. Experts have pointed to rampant oil theft from pipelines and wells as a major hurdle, adversely impacting government revenues and constraining output and exports.
Jide Pratt, a country manager at Trade Grid and an energy analyst, highlighted the urgency of addressing these issues to bolster production. He questioned Nigeria’s strategies in comparison to other oil-producing nations like Gabon, Saudi Arabia, and Kuwait, emphasizing the need for effective measures to combat oil theft and optimize production.
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In response to the escalating problem of crude oil theft, the Nigerian National Petroleum Company Limited (NNPC Ltd) has sought assistance from the Economic and Financial Crimes Commission (EFCC).
Mele Kyari, the group chief executive officer of NNPC Ltd, emphasized the severity of crude oil theft as a pervasive economic crime that demands concerted action.
Despite initiatives launched by NNPC Ltd to curb theft and vandalism, Nigeria continues to grapple with significant oil losses, prompting some international oil companies to shift operations from onshore to offshore fields. The reduction in Nigeria’s crude oil production aligns with OPEC’s efforts, alongside allied nations like Russia, to stabilize global oil markets through production cuts.
