TheCable

Crude oil production in Nigeria increased to 1,258,150 barrels per day (bpd) in January 2023.

The production figure is two percent — or 22,833 bpd — higher than the 1,235, 317 bpd recorded in December 2022.

The data is contained in the latest crude oil and condensate production report of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The figure also represents the highest oil production since January 2022 when output averaged 1.39 million bpd.

With the addition of condensate, oil production totalled 1.494 million bpd in January 2023 — down from 1.414 million in December 2022. 

Condensate is a mixture of light liquid hydrocarbons, similar to a light (high API) crude oil. It is usually separated from a natural gas stream at the point of production (field separation) when the temperature and pressure of the gas are dropped to atmospheric conditions.

Nigeria’s average oil price has steadily increased since the third quarter of 2022. 

The Nigerian National Petroleum Company (NNPC) Limited had said the country’s output may average 2.2 million barrels per day (bpd) — including condensate — in 2023. 

Timipre Sylva, minister of state for petroleum resources, said Nigeria should be able to meet the production quota set by OPEC in May 2023.

Earlier in the month, OPEC maintained its oil production levels, making room for the country to keep its promises. 

Following the oil cartel’s decision, Nigeria’s OPEC-assigned oil production quota remains at 1.83 million barrels.

Meanwhile, Nigeria’s budget for the 2023 fiscal year is predicated on an oil price of $75 per barrel and daily production of 1.69 million bpd.