Disruptions to Threaten Nigerian Crude Oil Production

SEATTLE (Oil Monster): The Short Term Energy Outlook by the U.S. Energy Information Administration (EIA) says that although Nigeria has managed to recoup itself as the top crude oil producer in Africa, unplanned production outages or disruptions continue to remain as a major threat to the country’s oil production.

The EIA report, Country Analysis: Nigeria, states that Nigeria’s oil production has dipped below that of Angola on several occasions. Further to the end of civil war in Angola in 2002, Angola’s oil production had recorded rapid growth. The country’s production surpassed that of Nigeria for the first time in 2008. Afterwards in 2016, Angola’s production topped that of Nigeria for almost a year. This was mainly on account of disruptions in Nigerian production following militant attacks.

The shutdown of Trans Niger pipeline and the Forcados export terminal led to sudden drop in production in Q3 last year. The production, which recovered in early-2023, was again disrupted by workers’ strike in April this year.

The Nigerian administration has initiated special drive to project the country as an attractive destination for oil and gas investment. Despite the administrative initiatives, the ongoing oil theft and sabotage to export infrastructure continue to cause concerns, which in turn impacts production and exports.