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Indigenous oil firms step up production by 200% in June

by ISAAC ANYAOGU

October 19, 2017 | 1:00 am
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Sixteen Nigerian indigenous oil producers who operate in partnership with international oil companies called independents, accounted for over 7.486 million barrels of crude oil in June, which represents an over 200 percent increase from May production volumes of 2.387 million barrels, according to data released by the Nigerian National Petroleum Corporation (NNPC).

This is significant because the highest production volume ever attained in the last one year, by the group, is 2.7 million barrels last March and it represents the biggest crude addition by the various arrangements through which crude oil is produced in Nigeria – joint ventures, marginal fields, service contracts and production sharing contracts.

“The success story is credited to a semblance of normalcy in the Niger-Delta region, following the Federal Government’s sustained engagement with the various stakeholders and resumption of export activities at the Forcados Terminal, after many months of non– operational activities,” said the NNPC in its July 2017 Financial and Operations report.

Topping the biggest group of producers, is the Nigerian Petroleum Development Company (NPDC) which raised production from 1.052 million barrels in May to 4.478 million in June.

Others are Neconde, whose production shot up to 423,999 barrels within the period from 6,347. Seplat Petroleum Development Company also raised production from 43,870 barrels to 684,581, Elcrest and Shoreline also saw their production advance from 19,689 to 137,834 and from 115,376 to 444,240 barrels respectively.

Analysts say this portends well for the Nigerian economy which sputtered out of a bruising recession in the second quarter of 2017, after contracting for six quarters. The extractive sector, grew 1.6% year-on-year, as against -11.6% YoY last year, on the back of an increase in oil production, to an average of 1.8mn b/d.

“Increased production by Nigerian independents is rightly attributed to better security situation in the Niger Delta and this is good for the economy. It is helping the economy to recover and growing Nigeria’s GDP (Gross Domestic Product),” says Emmanuel Afima, an energy analyst and CEO of Afima Consulting.

Improved crude production too is helping Nigeria’s stock of foreign exchange, helping to ease dollar challenges for the manufacturing sector and shrinking the dollar difference between the interbank and the parallel market.

A subsidiary of NNPC, NPDC which is involved in 29 concessions which comprise 22 OMLs and seven Oil Prospecting leases, seeks to grow its equity production from the current 180,000 barrels per day to 300,000 bpd by 2018 and by 2019 and 2020 its production is expected to hit 400,000 bpd and 500,000 bpd, respectively.

Yusuf Matashi, NPDC managing director, at an event in Benin last month, attributed the company’s increased equity production to the ongoing transformation in the NNPC.

Marginal field operators also contributed over 250,000 barrels, helping to boost Nigeria’s production to 1.9million barrels per day in June (including condensate). Joint venture producers and production sharing contracts saw their volumes shrink in the period.

 

ISAAC ANYAOGU

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by ISAAC ANYAOGU

October 19, 2017 | 1:00 am
  |     |     |   Start Conversation

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