Nigeria recorded the largest crude oil supply reduction among members of the Organization of Petroleum Exporting Countries (OPEC) in March, cutting output by 50,000 barrels per day (bpd).
According to a Bloomberg survey released on Tuesday, the reduction in Nigeria’s production was attributed to delays in loading Bonny Light crude following the recent explosion at the Trans-Niger Pipeline (TNP).
The explosion, which occurred on March 17, rocked the TNP, one of Nigeria’s largest oil pipelines, near Bodo-Bonny Road in the Gokana Local Government Area of Rivers State.
The road is currently under construction by Julius Berger Nigeria Plc through a joint funding partnership between Nigeria LNG Limited and the Federal Government of Nigeria.
The TNP, a crucial oil transportation artery in Nigeria, has a capacity of approximately 450,000 bpd.
However, actual transported volumes have varied due to oil theft and vandalism. As of March 2024, improved security measures had increased transported crude to over 200,000 bpd in the preceding six months.
Spanning approximately 180 kilometers (112 miles), the pipeline was previously operated by the Shell Petroleum Development Company (SPDC) but has since been acquired by a consortium under Renaissance Africa Energy Holdings.
Renaissance comprises Petrolin, an international energy company with global trading experience, and four Nigerian independent oil and gas firms: ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group.
The Bloomberg survey indicated that Nigeria’s crude reduction was also in line with its OPEC quota, as the cartel required member nations to reduce supplies to maintain an average production of 1.5 million bpd.
OPEC, in total, reduced production by 110,000 bpd in March. Iraq followed Nigeria with the second-largest reduction, cutting supplies by 40,000 bpd to 4.15 million bpd, though it still exceeded its agreed limit of 4 million bpd.
Meanwhile, the United Arab Emirates increased production by 30,000 bpd, surpassing its quota.
OPEC and its allies, collectively known as OPEC+, led by Saudi Arabia and Russi, have expressed their commitment to gradually restoring production and increasing supplies to stabilize global oil prices.
The report noted that the group is expected to add approximately 138,000 bpd in April as part of a phased increase running through late 2026.
It added, “The cartel’s decision to ease production cuts follows U.S. President Donald Trump’s request to Saudi Arabia to ‘cut the price of oil’ by increasing production. However, it remains uncertain whether this request influenced the decision.”
