Armed attacks on Nigerian crude makes Angola No 1 African oil producer
CRUDE oil production disruptions in Nigeria reached 750,000 barrels per day in May, the highest level since January 2009, according to the US Energy Information Administration's (EIA) latest Short-Term Energy Outlook.
The increased disruptions come as guerrillas continue to focus attacks on oil and natural gas infrastructure in the West African region.
"EIA expects Nigerian oil production to remain depressed through 2017 as a result of militant attacks.
Nigeria is a member of the Organisation of the Petroleum Exporting Countries (OPEC) and was Africa's largest oil producer until surpassed by Angola this year.
Nigeria's crude oil production disruptions are concentrated in the Niger Delta region, an oil-rich area bordering the Gulf of Guinea that is the mainstay of the country's crude oil production.
Since the beginning of 2016, the guerrillas of Niger Delta Avengers (NDA), locals who want a share of the oil revenues, conduct attacks on oil and natural gas pumping facilities and pipe lines.
The NDA's attacks have resulted in immediate and severe disruptions in crude oil production, as some of the attacks have targeted key oil-gathering and export infrastructure, said the US Energy Department press release.
Nigeria's oil production averaged 1.9 million b/d in 2015. By May 2016, Nigerian oil production had fallen to 1.4 million b/d, nearly a 30-year low, below that of Angola, now the No 1 oil producer.
The Nigerian government announced in June that it had agreed to a ceasefire with the NDA, but the group refutes that statement and has conducted numerous attacks since then.
More recently, the Nigerian government announced it will resume payouts to the guerrillas under the amnesty programme.
But because payouts are just one of the NDA's many demands, crude oil production stoppages are likely to continue until the Nigerian government and the NDA can reach a comprehensive agreement.
CRUDE oil production disruptions in Nigeria reached 750,000 barrels per day in May, the highest level since January 2009, according to the US Energy Information Administration's (EIA) latest Short-Term Energy Outlook.
The increased disruptions come as guerrillas continue to focus attacks on oil and natural gas infrastructure in the West African region.
"EIA expects Nigerian oil production to remain depressed through 2017 as a result of militant attacks.
Nigeria is a member of the Organisation of the Petroleum Exporting Countries (OPEC) and was Africa's largest oil producer until surpassed by Angola this year.
Nigeria's crude oil production disruptions are concentrated in the Niger Delta region, an oil-rich area bordering the Gulf of Guinea that is the mainstay of the country's crude oil production.
Since the beginning of 2016, the guerrillas of Niger Delta Avengers (NDA), locals who want a share of the oil revenues, conduct attacks on oil and natural gas pumping facilities and pipe lines.
The NDA's attacks have resulted in immediate and severe disruptions in crude oil production, as some of the attacks have targeted key oil-gathering and export infrastructure, said the US Energy Department press release.
Nigeria's oil production averaged 1.9 million b/d in 2015. By May 2016, Nigerian oil production had fallen to 1.4 million b/d, nearly a 30-year low, below that of Angola, now the No 1 oil producer.
The Nigerian government announced in June that it had agreed to a ceasefire with the NDA, but the group refutes that statement and has conducted numerous attacks since then.
More recently, the Nigerian government announced it will resume payouts to the guerrillas under the amnesty programme.
But because payouts are just one of the NDA's many demands, crude oil production stoppages are likely to continue until the Nigerian government and the NDA can reach a comprehensive agreement.
