Data from the Organisation of Petroleum Exporting Countries (OPEC) has revealed that Libya surpassed Nigeria to become the top African crude oil producer in March, according to the April 2024 Monthly Oil Market Report (MOMR) published by the oil cartel.
In March, Libya recorded a crude production of 1.24 million barrels per day (bpd), marking a 5.7% increase from February’s production of 1.17 million bpd. Meanwhile, Nigeria’s output dropped to 1.23 million bpd in March from 1.32 million bpd in February, representing the lowest production rate the nation has recorded recently.
The decline in Nigeria’s oil production underscores the challenges facing the country’s oil sector, including limited infrastructure, security breaches in oil-producing areas, and operational hiccups. Large-scale oil theft from pipelines and wells has been a significant challenge, impacting government finances and limiting output and exports.
Jide Pratt, country manager at Trade Grid and an energy analyst, expressed concern over Nigeria’s declining production, highlighting the need to address oil theft and optimize production wells.
Last month, the Nigerian National Petroleum Company Limited (NNPC Ltd) appealed to the Economic and Financial Crimes Commission (EFCC) to help combat crude oil theft in the country. Mele Kyari, the group chief executive officer of NNPC Ltd, emphasized the urgency of addressing crude oil theft, describing it as a significant economic crime that requires attention.
Despite efforts to curb theft, Nigeria continues to experience oil losses to vandals, prompting international oil companies to shift from onshore to offshore operations. The reduction in Nigeria’s crude oil production coincides with production cuts implemented by OPEC and its allies to stabilize world oil markets and maintain prices.
The OPEC+ group, led by Saudi Arabia, closely monitors member output levels to ensure compliance with agreed-upon quotas.
