Page 14 - DMEA Week 23 2022

DMEA NEWS IN BRIEF DMEA

Crude and condensate production in in the Niger Delta were also hampering also fighting a wave of divestments from
May fell 14% month on month to 1.279 the growth outlook for Africa’s largest oil international oil companies.
million b/d, according to Nigerian Upstream producer. The government has had lofty targets
Petroleum Regulatory Commission data. In a recent note, Platts Analytics said it to boost exploration and production and
That was the lowest in more than three expected Nigerian crude supply to rise to 1.5 increase oil reserves and output to 40 billion
decades, according to estimates from S&P million b/d from the fourth quarter of 2022 barrels and 3 million b/d, respectively, by the
Global. from 1.4 million b/d in April. mid-2020s. Those targets have started to look
Nigeria has seen its crude and condensate “Political risks may worsen ahead of unachievable.
production drop to almost half its production elections in early 2023,” Platts Analytics said. Nigerian crude is light and sweet, largely
capacity of around 2.2 million b/d. “Production has averaged about 300,000 b/d low in sulfur, and yields a generous amount
A majority of key oil fields, terminals and below its OPEC+ quota since mid-2021 due to of diesel, gasoline and jet fuel, which are the
facilities have been experiencing teething technical outages, theft and sabotage and force profit-making products for global refineries.
problems and a recent resurgence in attacks majeure.” S&P GLOBAL PLATTS
on oil facilities have exacerbated the situation. The declining oil production comes
Rising pipeline sabotage and insecurity at a difficult time for Nigeria, which is

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