By Adewale Sanyaolu with agency reports
The Organization of Petroleum Exporting Countries (OPEC) has confirmed a marginal output increase in Nigeria’s oil production despite reporting output falls in December on UAE and Iran finds, a Reuters survey has shown.
Among countries boosting output, Nigeria raised production by 50,000 barrels a day (bpd) the survey found, reflecting higher domestic usage in refineries such as Dangote alongside higher exports.
Nigeria had late 2024 resumed operations at its Warri and Port Harcourt refineries after years of shutdowns.
The OPEC oil output fell in December after two months of increases, due to a drop from the United Arab Emirates due to field maintenance and from Iran offset a hike from Nigeria and other gains elsewhere in the group.
The Organization pumped 26.46 million barrels per day last month, down 50,000 bpd from November, a survey showed on Tuesday, with the UAE providing the biggest drop.
The modest decline in output came as the wider OPEC+ group kept production cuts in place in December due to global demand concerns and rising output outside the group. OPEC+ decided last month to postpone its plan to start raising output until April.
OPEC’s biggest drop, of 90,000 bpd, came from the UAE, the survey found. A source said field maintenance was the reason for the decline, and the survey put output at 2.85 million bpd.
Iran’s output, which hit the highest since 2018 last year despite U.S. sanctions, fell by 70,000 bpd, the survey found. It may soon be curbed by tighter sanctions from the administration of incoming U.S. President Donald Trump, Goldman Sachs and other analysts have forecast.
OPEC’s top two producers, Saudi Arabia and Iraq, kept output steady and the group pumped below its implied target for the nine members covered by supply agreements, the survey found. Nigeria exceeded its target by the largest amount.
While the survey indicates the UAE and Iraq are pumping below their targets and November data provided by OPEC’s secondary sources puts them not far above, other estimates such as those of the International Energy Agency suggest they are pumping significantly more.
Libyan output also rose by 50,000 bpd, continuing a recovery after the resolution of a dispute over control of the central bank that had led to production cuts. The country is exempt from OPEC+ agreements to limit output.
The Reuters survey aims to track supply to the market and is based on flows data from financial group LSEG, information from other companies that track flows such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
Meanwhile, a new report has revealed that the overall crude and natural gas production from offshore fields is expected to grow steadily by 2028.
The ‘Global Offshore Upstream Development Outlook, 2024-2028’ report published by Research and Markets.com listed Nigeria among top countries contributing to the growth.
According to the report, Nigeria, Brazil, and Guyana are expected to be the important countries contributing to the surge in crude and condensate production through upcoming projects.
Concurrently, Iran, Qatar, Russia, and Australia are set to spearhead the expansion of natural gas production.
The report considered offshore oil and gas production outlook by key countries, and key companies for the period 2024 to 2028, Greenfield offshore projects capital expenditure outlook by key countries, key companies, and field terrain for 2024 to 2028 and major projects count by key countries and offshore terrain as well as details of key upcoming offshore crude and natural gas projects
The report may have taken cognisance of significant shift in Nigeria’s upstream oil and gas sector where indigenous energy companies are increasingly entering the field and positioning themselves to compete on a larger scale.
Local oil companies (LOCs) have successfully acquired assets divested by International Oil Companies (IOCs) while emerging firms are successfully securing blocs in marginal fields and shallow waters.