Nigeria’s Crude Oil Production Rises to 36.7 million barrels in May

Nigeria’s crude oil production increased by 6.73 million barrels to 36.7 million barrels in May 2023, leading to a cumulative revenue of about N1.27tn in the month under review.

Data obtained from the latest Monthly Oil Market Report of the Organisation of Petroleum Exporting Countries for June 2023, indicated that crude oil output from Nigeria rose from a total of 29.97 million barrels in April to 36.7 million barrels in May.

OPEC stated that crude oil production figures received by the global oil cartel, based on direct communication from Nigeria, showed that the country pumped 999,000 barrels of oil per day in April, but this moved up to 1,184,000 barrels per day in May this year.

Industry figures obtained from Statistica, a global statistical firm, showed that the average costs of Brent, the international benchmark for crude, in April and May were $75/barrel and $80/barrel respectively.

By producing a total of 29.97 million barrels of crude oil in April 2023, at an average price $80/barrel, Nigeria earned about $2.4bn (N1.1tn at the official exchange rate of N461/$, as of April this year).

Also, by pumping out 36.7 million barrels of crude in the month of May, at an average cost of $75/barrel, Nigeria’s oil earnings rose to about $2.75bn, an equivalent of N1.27tn, based on the official exchange rate of N461/$ as of May 2023.

It was, however, observed that while the cumulative difference in oil production by Nigeria in both months was over six million barrels, there was a drop in the average cost of crude from about $80/barrel in April to $75/barrel in May.

Punch/Hauwa Abu