Nigeria is dramatically increasing production
Nigeria, long the OPEC wild card, boosted its oil production to a respectable 1.8 million barrels of oil per day (bpd), saying Thursday it could reach 2 million bpd by the end of the year, that is, within less than two months.
That's a bold promise, especially for a country that barely scraped together 1.3 million bpd last month, according to direct disclosure data in OPEC's October Monthly Oil Market Report. The two million count could even include the data relating to the oil condensate produced in abundance.
A small miracle
How did this production miracle happen? The Nigerian National Petroleum Corporation (NNPC) is complimenting the “collaborative efforts” with joint venture and production partners. This collaboration also extends to security forces, because Nigeria has struggled to pump oil when its pipelines have become playgrounds for oil thieves and saboteurs.
NNPC CEO Mele Kyari praised the work of his team, which didn't just recover production but seemingly turned what was a messy mess into something that shareholders might even be semi-confident about. satisfied . The “war room” strategy, launched in June, brought together oil companies, private security and government officials to tackle oil theft head-on. The ships have been destroyed, the illegal refiners arrested and the oil pipelines monitored closely, because in case of extreme evils, last resorts.
Nigeria's recovery is part of a larger OPEC story. In October, the cartel reported a total production increase of 466,000 bpd, driven by Libya's triumphant return to full production capacity after resolving a political crisis that had nearly halved its production.
To the surprise of few, fresh unrest has once again created havoc in Libya, with protesters blocking oil distribution valves connecting Libya's largest field to the Zawya refinery.
The stability of Nigeria's ambitions depends on the ability of the "war room" to resist its greatest nemesis: chaos.
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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-nigeria-sta-aumentando-potentemente-la-produzione/ on Fri, 15 Nov 2024 14:51:46 +0000.