OML 40 Explosion: Nigeria’s Oil Production To Dip 10,000bpd
Nigeria’s oil production output is to be shortened by 10,000 barrels per day owing to the explosion on the production facility in Oil Mining Lease (OML) 40 involving Elcrest Exploration and Production Nigeria Limited and the Nigerian Petroleum Development Company (NPDC).
The incident happened while during production evacuation at Gbetiokun Early Production facility, according to the NPDC, an upstream subsidiary of the NNPC.
The Group General Manager, Group Public Affairs Division, Kennie Obateru, in a statement, however, stated that there were no fatalities or injuries and no significant spill in the incident.
“There was, however, significant damage to the marine storage vessel, MT Harcourt, which will impact production by about 10,000barrels of oil per day”.
With this incident, Nigeria”s oil production will drop further when the total output figure is declared at the end of the month. Nigeria produced 1.37 million barrels of crude oil per day in August 2020, but the figure dropped to 1.31 million barrels per day in September. This showed that the country’s oil production reduced by 58,000 barrels daily in September when compared to the production figure in the preceding month.
Nigeria had planned 1.8million barrel per day, oil production in 2020 according to the revised MediumTerm Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) documents owing to global economic realities and also due to the decision of cutting production by OPEC which Nigeria is a member
Obateru said the NNPC has since commenced an investigation to ascertain the cause of the incident with a view to averting future occurrence.
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