Business
Nigeria’s crude oil output to drop as Exxon Mobil declares force majeure
The recent increase in oil production is set to be significantly hit as Exxon Mobil has declared force majeure on oil lifting from different terminals in the country.
The declaration follows an industrial action by the company’s in-house workers union.
Last year, Nigeria’s oil production dropped to around one million bpd, falling behind Angola, due to the departure of companies such as Shell PLC and TotalEnergies caused by extensive corruption and security concerns.
Currently, Nigeria is making efforts to boost its oil production to 1.6 million barrels per day, in order to regain its former status as the largest African producer of the Organization of the Petroleum Exporting Countries.
READ ALSO:Nigeria makes N21trn from crude oil sales
Nigeria produced 1.38 million bpd in February, according to OPEC’s latest report.
“We will continue to take all reasonable actions necessary to resolve the impasse as soon as possible,” Exxon spokesperson Michelle Gray said in a statement on Monday.
Exxon has been trying to sell $1.2 billion in shallow-water assets in Nigeria, where it finds operations “challenging”, the company had stated in February, while keeping deep-water assets further from the coast.
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