Nigeria’s crude oil production rises

Nigeria’s crude oil production rises

Discussions with militants in the Niger Delta are proving successful as oil production grows to 1.9 million barrels per day

IMO state government declares Thursdays, Fridays as ‘farming days’
Nigeria is expected to benefit from the newly reduced import duties
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Background

Nigeria has the biggest population of all the African countries and has the 20th largest economy in the world. It is in the West of Africa and bordered by Chad, Benin, Cameroon and Niger as well as the Gulf of Guinea, part of the Atlantic Ocean.

The Organization of the Petroleum Exporting Countries organization (OPEC) has declared that Nigeria has the largest reserves of oil in Africa and the 10th largest in the world.

The vast income they generate from their energy exports, which make up over 70% of the total governments earnings and 95% of their total export revenue, supports the country’s economy as a whole, and is responsible for up to 40% of the country’s total gross domestic product (GDP).

Oil production in the Niger Delta is increasing

Following an increase in attacks and sabotage on oil pumping facilities in Nigeria, particularly in the Niger Delta by The Niger Delta Avengers (NDA), oil production fell to 1.3 million barrels a day just a few months ago. This situation is however beginning to improve following some very successful discussions and negotiations with representatives and community leaders from the areas in the Niger Delta being targeted by militants, including the NDA, and production figures have finally started to increase again. Over recent months in fact, oil production in Nigeria has increased to 1.9 million barrels a day, and the industry is currently forecasting that this growth will continue sufficiently over coming months, in order to be able to achieve a figure of 2.2 million barrels a day before the end of 2016. This figure will ensure that Nigeria retakes its position at the top of the African oil producers list, currently being held by Angola, following a strong first quarter for them.


source: tradingeconomics.com

The Organization of the Petroleum Exporting Countries organization (OPEC) meet in Algeria

During a meeting on September 26th, 2016 in Algeria, OPEC, which includes some of the biggest oil producers in the world, agreed to cut oil production levels. This decision resulted in a 6% increase in crude oil prices and a surge in energy stock prices, the market’s reaction surprised some people particularly when you consider that the details of how the reduction will actually be achieved in real terms, have still yet to been decided.

How this agreement will affect countries such as Nigeria, whose production levels are currently on the increase, remains unclear at this time.

Image source: www.africatime.com

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