THUR AUG 29 2024-theGBJournal| The Nigeria oil sector grew by 10.15% y/y in Q2-24 (Q1-24: +5.70% y/y | Q2-23: -13.43% y/y) underpinned by a lower base in the corresponding quarter in the previous year.
The sector maintained its positive trajectory primarily due to the FG’s unrelenting effort to curb crude oil theft and pipeline vandalism, the development and integration of new oil fields, and fewer terminal shut-ins.
Particularly, average crude oil production output settled at 1.41 mb/d in Q2-24 compared to 1.22 mb/d in Q2-23.
A breakdown of the data provided by the Nigerian Upstream Regulatory Commission (NUPRC) showed that the Bonny (+40.1% y/y), Qua Iboe (+17.1% y/y) and Forcados (+3.9% y/y) terminals primarily contributed to the increased crude oil production in Q2-24 relative to Q2-23.
Overall, crude oil production (including condensates) averaged 1.49 mb/d in H1-24 (H1-23: 1.37 mb/d).
Notwithstanding, we highlight that the headwinds in the Nigerian oil sector such as infrastructure decay reduced investment in existing terminals and International Oil Companies (IOC) exit from Nigeria’s major oil assets continue to subdue domestic oil production below pre-COVID levels (Q1-20: 2.17 mb/d).
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