82% of Nigeria's oil production lost in Feb - IPPG
A worker inspect facilities on an upstream oil drilling platform at the Total oil platform at Amenem, 35 kilometers away from Port Harcourt in the Niger Delta. Amenem is the hub of Total oil production with two oil well producing over 100,000 barrels of crude daily. AFP PHOTO / PIUS UTOMI EKPEI (Photo credit should read PIUS UTOMI EKPEI/AFP/Getty Images)

The Nigerian National Petroleum Company (NNPC) Limited has said that Nigeria’s total crude oil output was 1.56 million barrels per day (bpd) as of Friday, June 2, 2023.

NNPC’s Group Chief Executive Officer (GCEO), Mele Kyari, made this revelation in an interview he granted Reuters over the weekend.

Speaking on the country’s production capacity, the NNPC boss said Nigeria’s total crude oil output was 1.56 million barrels per day (bpd) as of Friday, June 2nd and the figure is expected to rise.

Nigeria has struggled to meet its Organisation of Petroleum Exporting Countries (OPEC) quota of 1.742 million bpd due to illegal refining and oil theft.

For instance, the nation’s oil production fell below the one million mark in April 2023, as output tumbled to 998,602 bpd.

The figure was a 21.26 percent decline compared to March, when output was 1,268,202 bpd.

It was also the lowest volume of production in the last seven months.

Kyari also disclosed that NNPC Limited has commenced the termination of crude oil swap contracts and will pay cash for petrol imports.

The NNPC’s group chief executive officer said private companies could begin importing petrol in June.

He said the national oil company will now pay for its purchases in cash by terminating the crude swap contracts, adding that less petrol will be imported by NNPC while private companies will import the bulk.

“In the last four months, we practically terminated all direct sale direct purchase (DSDP) contracts.

“And we now have an arm’s-length process where we can pay cash for the imports”, Kyari told Reuters.

The DSDP is an agreement that allows sales of crude oil to refiners, who will in turn supply NNPC with an equivalent worth of petroleum products.

In the Reuters report, Kyari said this is the first time NNPC has said it is terminating crude swap contracts, emphasising that by importing less petrol as private companies import the bulk, NNPC would be able to pay for its purchases in cash.


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