Good News: Nigeria Becomes Africa's Top Oil Producer

The restart of the Forcados loading for oil export has increased Nigeria’s oil production to 1.68 million barrels per day which is the highest in more than a year. 



This is according to the Organisation of Petroleum Exporting Countries (OPEC) monthly report for the month of June release on Tuesday, June 13.  Nigeria’s production rose from 1.506 million barrels per day from April to 1.68 million barrels in May based on secondary sources. 

This increase in production has made the country the largest oil producer in Africa overtaking Angola which incidentally suffered the largest decline in oil production. Nigeria’s position as Africa’s top oil producer suffered a dip following the activities of Niger Delta militants particularly in the second half of 2016 but with Professor Yemi Osinbajo’s numerous visits to the region to call for peace, the country had regained its top spot.

 Osinbajo met with leader from the Niger Delta region to discuss how terms to put an end to the growing agitation in the region and it seems his numerous visits paid off with reports of militancy activities reduced and almost non-existent. There was earlier indication that Nigeria might be added to the OPEC agreement which saw member state agree to remove 1.8 million barrel a day from the market but Nigeria was excluded due activities of militants that had truncated its production. According to the OPEC report, there was concern that increased oil production in Nigeria, Libya and the US might lead to excess crude oil supply. 

"The oil market was range bound and the sentiment bearish for most of May, despite the OPEC and non-OPEC decision on 25 May to extend production adjustments until the end of March 2018. Oil prices edged down earlier in the month as a recovery in Libyan and Nigerian output and rising US supplies raised worries about excess supply. "Nigerian crude production rose to 1.68 mb/d, the highest level in more than one year. This followed the restart of Forcados loadings for the first time since October 2016." 

Angola on the other hand suffered the lowest production among the 13 member state from 1.667 million barrels per day in April to fall to 1.613 million barrels per day in May. "According to secondary sources, OPEC crude oil production in May increased by 336 tb/d from the previous month to average 32.14 mb/d. Crude oil output increased the most in Libya, Nigeria and Iraq, while production in Angola and UAE showed the largest declines."