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Nigeria’s Crude Oil Output Drops Again

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Nigeria Crude oil production has faced a nosedive from the usual 2.2 million barrels per day to 1.6 million barrels per day between the months of February to March 2017.

The Ministry of Petroleum resources has attributed this reduction  of oil production to the routine maintenance work carried out on 250,000 bpd (barrels per day) capacity FPSO (Floating Production Storage and offloading) unit, owned by SNEPCo.

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There is an anticipated boost of oil production in the upcoming month when the exercise must have been accomplished. This maintenance operation indicates a decline of 600,000 bpd from 2.2 mbpd, which is contrary to what  the FG projected in her budget. Nigeria losses $38 million dollars daily as a result of this drop in oil output.  SNEPCo under the Production Sharing Contract with the NNPC produces 200,000 bpd from the Bonga Field.

Bayo Ojulari, the Managing Director of SNEPCo has said that the current maintenance operation of the field was the fourth since it commenced production in November, 2005.

He stated, “The plan is to successfully conclude the ramp of activities and resume production as planned in April, 2017. It is not proper to interpret the period as production loss to Nigeria.

“Rather, the turnaround maintenance is a series of planned and controlled activities that are implemented in collaboration with government and other stakeholders with the aim of ensuring the continued safety and productivity at the facility. The planning started two years ago and safety is top priority in every stage of the activities.

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“This is an operation safely in Nigerian hands, with Nigerian engineers and companies playing leading roles and ensuring the objectives of the exercise are achieved.” The turnaround maintenance which commenced on March 04, 2017, involves three major components – statutory and regulatory safety checks, inspections, repairs and replacement of equipment and upgrades.”

Dr. Ibeh Kachukwu, The Minister of States for Petroleum said that Nigeria was capable of producing 3,000,000 bpd but this cannot be released as a result of the persistent security threats in the Niger Delta.

“It is important we continue to sustain the institutional engagement and negotiations which are key to the development of the region. “Our target is zero militancy by the middle of 2017, and an incident reduction in the region by 90 per cent by 2018. “We must resolve current militancy problems and bring back oil production to 2.2 million barrels per day,” he said.

 
 
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