Theft, Floods Hit Nigeria Oil Production: IEA

From Radio Netherlands

Oil production in Nigeria fell to 1.95 million barrels per day in October, the International Energy Agency said in its monthly report, with production in recent months having ranged between 2.0 and 2.5 mbd.

The drop from September to October was around 110,000 barrels per day, it said, leaving Nigerian production at “the lowest level in around two and half years.”

It said: “By early November, production levels were recovering, with export schedules showing increased volumes for December.”

It was enough to keep Nigeria as Africa’s top producer ahead of Angola at 1.79 million barrels per day, but the drop comes amid growing warnings that the country must take action to avoid stagnant output in the future.

The IEA report cited heavy flooding which hit Nigerian production this rainy season as well as the continuing problem of large-scale and organised oil theft in the continent’s most populous nation.

It cited findings that “oil bunkering, or theft, costs the government an estimated $7 billion in lost revenue per year.” By comparison, Nigeria’s annual total budget is around $31 billion.

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