Nigeria’s oil production slumped by 28 million barrels between January and July 2022, threatening the Federal Government’s N9.37tn oil and gas revenue target by the end of the year.
The Federal Government, in the 2023-2035 Medium Term Expenditure Framework & Fiscal Strategy Paper recently presented by the Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, blamed oil production shut-ins due to pipeline vandalism, crude oil theft and high petrol subsidy cost.
Most industry experts who spoke with The PUNCH on Sunday also attributed the decline to oil theft, which appears to have defied solutions.
After posting a high crude oil production figure of 1.399 million barrels per day in January 2022, Nigeria’s production crashed to as low as 1.084mbpd in July.
By dropping from 1.399mbpd in January to 1.084mbpd in July, it means the country lost about 315,000 barrels of crude oil daily, amounting to 28.4 million barrels of oil during the six months interval.
Findings by our correspondent on Sunday from various monthly oil production reports of the Organisation of Petroleum Exporting Countries indicated that Nigeria actually stepped up its output from 1.197mbpd produced in December 2021 to 1.399mbpd in January 2022.
But this could not be sustained, as the country’s oil production commenced a descent in February, dropping to 1.258mbpd and crashed further in March to 1.238mbpd.
The plunge continued in April and May, as the country…