Nigeria’s economic woes may be taking a turn for the worse, as reports say the nation’s oil output has fallen to the lowest level in 22 years.
This is as a result of Wednesday’s night attack on Chevron’s Okan oil facility.
According to Chevron, the damage occasioned by the attack on the facility has reduced its production levels by 90,000 barrels a day.
It also said the attack on an offshore platform, serving as a gathering point for production from several fields, will affect its production levels for the days to come.
According to data gathered by Bloomberg, prior to the Wednesday’s attack, Nigerian oil production had fallen below 1.7 million barrels a day for the first time since 1994. The set back means that Nigeria would most probably lose its leading position as Africa’s leading oil producer.
The effect of the renewed attacks on oil facilities means the full implementation of the 2016 budget may be in jeopardy, as the budget was based on 2.2 million barrels per day at $38.
According to reports, Nigeria has has produced about 400,000 barrels less than the set benchmark in the past five months, and with the upsurge in the attacks, the figure my increase to 600,000 barrels before the end of May.
According to the International Energy Agency, IEA, Nigeria could lose an estimated $1 billion in revenue by May, when it expects repairs on Forcados to be completed. However the Minister of State for Petroleum Resources, Ibe Kachikwu, said in April that the Forcados terminal may not restart until June.
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