Attacks on Nigerian major oil facilities by the Niger Delta Avengers mid 2016 has come and gone but its effects might remain for some time. As a result of the attacks, Nigerian economy lost up to $100b in potential revenue according to Dr. Ibe Kachikwu, Nigeria’s Minister of State for Petroleum Resources.
Crude oil production plunged from 1.757 million barrels per day in January 2016 to 1.1 million bpd in August as the Niger Delta Avengers hit oil pipelines and other infrastructure within their jurisdiction. Aside from direct losses associated with falling oil production and costs for refurbishing the pipelines and rigs, the instability in Nigeria’s oil-bearing areas led to a decline in investments into the country.
The minister was however optimistic that that peace will sure return to the Niger Delta as the federal government is committed to providing social and infrastructural development of the region. In his words: “We need to pull the people out of conflict and place them in schools,”
The good news is that the federal government has reached out to the Niger Delta Avengers and ceasefire has been reached in August 2016. The ceasefire was timely and this provided rooms for Nigerian authorities to recover lost crude oil production levels. Official data showed that there was steady growth in crude oil production after the ceasefire as the country hit 1.94 million bpd, a little short of targeted 2.2 million bpd.
However, secondary sources has it that the country’s December production amounted to just 1.54 million bpd, as stated in the OPEC monthly report.
No matter the inconsistency in data, Nigeria has the potential to increase her crude oil production to as much as 2.2 million bpd in 2017. This is because OPEC has exempted the country from production cut so as to allow the country use revenue accruing from the excess production to mend some of her current economic crises. According to the deal’s quotas, Nigeria is allowed to produce no more than 2.2 million barrels per day during the first six months of this year.
The federal government has done well by resolving the crises in the Niger Delta amicably and all things being equal the peace in the region will be sustained and steady crude oil production will be maintained.
Share your thoughts in the comment box.
[pt_view id=”abaaee9arp”]
Dooes your blkog have a contact page? I’m havijng problms locating iit but,
I’d likke tto end yoou aan e-mail. I’ve got somee ideas forr youur blo
youu migt bee interested inn hearing. Either way, reat sote and I look
foprward too seeing itt devcelop ovger time. Everyone loves what
you ghys tnd tto bbe upp too. Thiis kibd oof clevber ork annd exposure!
Keep up thee exzcellent wortks guyys I’ve included yoou uys to myy persknal blogroll.
Ahaa, itss fastgidious disussion abhout this ost aat this place att
tthis weblog, I ave reawd aall that, soo now mee also commenting here.
Contact page not hidden. Check the menu bar
I like what you guys are up too. This type of clever work
and exposure! Keep up the very good works guys I’ve added you guys to my own blogroll.
Thanks for checking by.
Hey there! This is my 1st comment here so I just wanted to give a quick
shout out and say I genuinely enjoy reading through your posts.
Can you suggest any other blogs/websites/forums that cover the same
subjects? Thank you!
W e don’t know for now. Thanks for checking by
Thanks for checking by. The write up is worthless if reliable people like you don’t read it. We appreciate you. Regards