Nigeria’s oil production has reached a remarkable milestone, with crude oil output soaring to 1.35 million barrels per day in September 2023.
This surge in production represents a significant boost to the country’s economy, as it marks the highest volume of crude oil pumped by Nigeria in a single day this year. The data, sourced from the Nigerian Upstream Petroleum Regulatory Commission, reveals a 14% increase in output compared to the previous month of August 2023.
A closer analysis of the figures for September indicates that Nigeria’s crude oil production, excluding condensates, reached an impressive daily count of 1,346,562 barrels. This represents a notable increase of 165,429 barrels per day compared to the 1,181,133 barrels produced in August of the same year. The consistent progression in oil production throughout the earlier months of the year culminated in the record-breaking output witnessed in September.
In addition to this significant achievement, another development in Nigeria’s oil sector is garnering attention. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has expressed optimism regarding Exxon Mobil’s asset sale to Seplat Energy. Gbenga Komolafe, the Chief Executive of NUPRC, conveyed this outlook during the Africa Oil Week in Cape Town.
The sale, valued at $1.28 billion, was initially not approved by the regulator. However, many stakeholders in the industry believe that this deal is pivotal for attracting much-needed investment into Nigeria’s oil and gas sector. Komolafe’s optimism stems from the hope that the concerned parties will review the regulator’s position and abide by Nigerian laws, paving the way for progress and the realisation of mutual benefits from the transaction.
The surge in Nigeria’s oil production to 1.35 million barrels per day is a significant achievement for the country’s economy. As Africa’s largest oil producer, Nigeria heavily relies on oil revenue to support its economy and ensure economic stability. Therefore, any increase in oil production has a direct positive impact on the nation’s finances and its ability to invest in other sectors.
The consistent progression in oil production witnessed throughout the year is a testament to Nigeria’s commitment to further develop its oil sector. This progress can be attributed to various factors, including increased investment in infrastructure, improved production techniques, and the successful implementation of fiscal reforms. Furthermore, the Nigerian government’s efforts to attract international investors and foster a conducive business environment have also played a crucial role in boosting oil production.
Regarding the ExxonMobil asset sale to Seplat Energy, the optimism expressed by the NUPRC signals the potential for increased investment in Nigeria’s oil and gas sector. The sale, if approved, would not only inject a significant amount of capital into the sector but also attract more foreign investors. This, in turn, would contribute to the growth and diversification of Nigeria’s economy, reducing its dependence on oil and promoting sustainable development.