OPEC says Nigeria Lost N1.22trn to Oil Production Deficit in Q1 2022
Reports by the Organization of Petroleum Exporting Countries (OPEC) have revealed that Nigeria lost about N1.22tn to crude oil deficit in the first quarter of 2022.
According to OPEC, the country lost about 22.658 million barrels of crude oil within the period under review.
The reports released in the last four months of the year showed that Nigeria did not meet its OPEC oil production quotas in January, February and March.
OPEC stated that Nigeria’s huge loss was because of the country’s persistent inability to meet its production quota approved for OPEC member countries.
The reports indicated that OPEC approved 1.683 million barrels per day as Nigeria’s crude oil production quota in January.
While the organisation approved 1.701mb/d and 1.718mb/d for the country in February and March 2022 respectively.
Unfortunately, in its April Monthly Oil Market Report, OPEC observed that Nigeria’s oil production from secondary sources in January was 1.413mb/d, which subsequently dropped to 1.378mb/d in February and declined further in March to 1.354mb/d.
Analysis of the figures showed that the country fell short of the OPEC approved quota in January by 270,000 barrels daily, indicating inability to produce 8.370 million barrels to meet its approved target for the month under review.
Similarly, in February, Nigeria’s daily crude oil production loss viz-a-viz OPEC approved quota was 323,000 barrels, which amounted to 9.044 million barrels for the month.
Likewise in March, the daily oil production of Nigeria was 364,000 barrels below OPEC approved quota.
This therefore means that Nigeria’s crude oil production in March was 11.284 million barrels lower than its expected production quantities.
The implication of the deficit was that in the first quarter of the year under review, Nigeria failed to produce 28.658 million barrels of crude oil to meet its production quota as approved by OPEC.