Production surge aligns with 2025 budget targets, Brent crude drops to $72.06
Nigeria’s oil production, including condensate, has risen by 13.3% year-on-year (YoY) to 1.7 million barrels per day (bpd) in November 2024, up from 1.5 million bpd recorded in the same period last year. On a month-on-month (MoM) basis, the output also increased by 10%, climbing from 1.5 million bpd in October 2024 to 1.7 million bpd in November.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) report released yesterday, the November production figure represents the highest monthly output for the nation in 2024. Earlier in the year, production was recorded at 1.6 million bpd in January, before dropping to 1.5 million bpd, then rebounding to the current level.
Experts have described the output increase as promising for Nigeria’s 2025 budget, which is based on a benchmark of 1.7 million bpd at $75 per barrel.
Oil Prices and Market Concerns
Meanwhile, oil prices dipped slightly on Monday as market concerns eased over regional instability following Syrian President Bashar al-Assad’s ousting. Brent crude, the global benchmark, fell by 0.11% to $72.06 per barrel, while U.S. West Texas Intermediate (WTI) dropped by 0.20% to $68.23 per barrel as of 9:50 AM WAT.
Though Syria is not a major oil producer, its strategic ties with Russia and Iran have heightened concerns about potential instability in the region following a regime change.
Future Output Growth
Nigeria’s production outlook remains positive, with industry analysts expecting further increases following the recent Sale and Purchase Agreement (SPA) between Seplat Energy Plc and Mobil Producing Nigeria Unlimited (MPNU).
Last month, the NUPRC approved the sale of ExxonMobil’s onshore oil and gas assets in Nigeria to Seplat Energy. This transaction, coupled with ongoing operational improvements, is anticipated to boost production in the coming years.
Additionally, the NUPRC confirmed that Nigeria’s crude oil output, including condensate, reached 1.8 million bpd in October 2024, surpassing the country’s production quota set by the Organization of Petroleum Exporting Countries (OPEC).
