Nigerian producers hit hard, data shows

ABUJA, June 12, 2017 – Nigerian companies produced lower volumes of crude in 2016 compared with the year prior, local media reported on Sunday, citing recently obtained data.

According to figures circulated by the various Nigerian news outlets, domestic companies produced 126,055 bopd between them last year. In 2015, those same entities produced 219,644 bopd. As a result, the share of indigenous oil companies in Nigeria’s output fell from 10.3% to 6.4%.

Nigeria Petroleum Development Company was hit hardest, registering a 52.9% drop in production to 46,630 bopd. Local independents produced 34% less. Output levels have since recovered.

International operators were able to increase their output, albeit marginally. In 2016, they produced 891,342 bopd, up from 885,315 bopd in 2015.

In April 2017, Nigerian media reported that indigenous producers were targeting a 60% increase in combined production by year-end 2018.

Citing comments from 20 Nigerian operators, news outlets reported on plans to grow collective domestic output from 313,602 bopd at present to 500,000 bopd over the next 20 months.

In related news, Lekoil over the weekend received government approval of the transfer of independent oil company Afren’s 17.14% stake in the OPL 310 asset, first announced in February 2013. The December 2015 deal for the latter’s remaining 22.8% participating interest remains under review.

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