Nigeria Petroleum and Gas News

NIGERIA’S crude oil output dropped by 100,000 barrels per day (b/d) in March moving from 2.250 million barrels per day in February to 2.150 barrels per day, an indication that revenue receipts to the state was also impacted by the development.
The 10 members of the Organisation of Petroleum Exporting Countries (OPEC) bound by the group’s output agreements produced an average 26.54 million barrels per day (b/d) in March, a Platts survey showed April 11, indicating also that total output dropped by 80,000 b/d from February’s 26.62 million b/d.
However, output remained 740,000 b/d above the group’s 25.8 million b/d production target for the period under review.The Platts survey revealed that the drop in Nigeria’s oil output was a reflection of the aftermath of recent attacks on oil and gas facilities in the Niger Delta area, including arson and kidnaping in the last one month.
Although hostages taken are often released unharmed, this has failed to inspire confidence in the international markets where price volatility remains very high.
Total production from all 12 members, including Iraq which does not participate in OPEC output pacts and Angola which joined the group at the beginning of this year, dipped by 70,000 b/d to 30.11 million b/d, the survey estimated.
“There certainly is no sign that higher prices are leading OPEC producers to put more oil on to the market,” said John Kingston, Platts Global Director of Oil.
“To the contrary, the steps the group took several months ago to restrain output are still firmly in place. And with the third and fourth quarters, which are historically demand_growth periods, just months away, it won’t be long before the group will be confronted with the question of whether to put more oil on to the market.”
Among the OPEC_10, there were small output increases from Indonesia and United Arab Emirates (UAE), but Nigeria, following the latest attack on oil facilities in the Niger Delta, saw overall production fall by about 100,000 b/d.
Iraqi volumes were slightly down on February, while Angolan production continued to rise.OPEC ministers agreed last October to remove 1.2 million b/d of crude from world oil markets beginning in November, saying supply was well in excess of demand and setting a production target of 26.3 million b/d.
In December, they agreed to expand the cut by 500,000 b/d from February, bringing the target to 25.8 million b/d. The cuts were based on estimated September production of 27.5 million b/d.
In a related development, the Nigerian government has decided to go ahead with the earlier scheduled road show for the 2007 licensing round for oil and gas blocks, though, with some amendments.
Vanguard gathered that only one road show is now billed to take place in London on Wednesday 18, April, 2007, while that which was earlier scheduled for Houston, USA has been put off.
A senior management personnel of the Department of Petroleum Resources (DPR) who spoke on the basis of anonymity disclosed that the decision to go ahead was inspired by Dr. Edmund Daukoru, the Minister of Energy who insisted that the road show is an integral part of the licensing round.
The management personnel noted that the Minister prides himself as a thoroughbred professional who insists on doing everything by the book irrespective of the general mood.“We are aware that there is some measure os skepticism and even apathy on the part of some prospective investors. But this licensing round has been in the works for quite sometime now and we cannot start to cut corners because some people are not comfortable with the timing of the round,” the official said.
When contacted, Mr. Tony Chukwueke, the Director, DPR confirmed the development, saying that the road show will take place in London on Wednesday 18, 2007.