Nigeria has made the biggest crude oil supply reduction in March, among members of the Organization of Petroleum Exporting Countries (OPEC) as it cut crude oil output by 50,000 barrels per day.
Bloomberg in a report of its survey on Tuesday, attributed the reduction in Nigeria’s production to delays in loading Bonny Light crude due to the recent explosion at the Trans-Niger Pipeline.
Explosion had on March 17, rocked the Trans-Niger Pipeline ((TNP), which is one of Nigeria’s largest oil pipelines. The incident occurred near Bodo-Bonny Road, Gokana Local Government Area of Rivers State, which is currently under construction by Julius Berger Nigeria Plc through a joint funding partnership between Nigeria LNG Limited and the Federal Government of Nigeria.
TNP is a major oil transportation artery in Nigeria, has a capacity of approximately 450,000 barrels per day (bpd). However, actual transported volumes have varied due to factors such as oil theft and vandalism. As of March 2024, improved security measures led to an increase in transported crude, with volumes exceeding 200,000 bpd over the preceding six months.
It is considered one of Nigeria’s biggest oil pipelines and is a major crude oil transportation pipeline in the Niger Delta region, which is known for its significant oil reserves.
The pipeline which spans approximately 180 kilometers (112 miles) and is operated by Shell Petroleum Development Company (SPDC), which has been acquired by a consortium of companies under Renaissance Africa Energy Holdings.
Renaissance is a consortium of Petrolin, an international energy company with global trading experience and a pan African outlook and four successful Nigerian independent oil and gas companies: ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group.
According to the Bloomberg survey, Nigeria made the crude reduction also to maintain an average of 1.5 million barrels per day, in line with its OPEC quota, as the cartel had demanded from member nations reduced supplies.
It stated that OPEC reduced overall production by 110,000 barrels per day in March.
The report also stated that Iraq followed with the second-largest reduction after Nigeria, as it reduced its supplies by 40,000 barrels per day to 4.15 million barrels. However, Iraq still maintained above its agreed limit of 4 million barrels per day.
Bloomberg also reported that the United Arab Emirates increased production by 30,000 barrels per day, and exceeded its quota.
According to the report, OPEC and its allies, OPEC+—led by Saudi Arabia and Russia have expressed commitment to gradually restore production and increase supplies to stabilize global oil prices.
The report stated that the group is expected to add roughly 138,000 barrels per day in April as part of a phased increase running through late 2026.
It said, “The decision of the cartel to ease production cuts follows U.S. President Donald Trump’s request to Saudi Arabia to ‘cut the price of oil’ by increasing production. It is uncertain whether this was what informed the decision or not.”
