NNPC sees drop in oil and gas production in July due to disruptions

The Nigerian National Petroleum Company Limited (NNPCL) reported a drop in crude oil and condensate production in July. Output fell to 1.68 million barrels per day (mbpd) from 1.72 mbpd in June.

This information came from the company’s monthly report for July, released on Wednesday.

The July figure shows a 2.3 percent decline from the previous month, mainly due to lower crude oil production.

Looking at the production data, crude oil output decreased to 1.44 mbpd in July, down from 1.47 mbpd in June. Condensate production also fell to 0.24 mbpd from 0.25 mbpd.

NNPC said the decline was due to operational disruptions in several areas, facility outages, equipment issues, pipeline incidents, and other production challenges.

“July crude oil production was affected by a combination of operational disruptions across several assets, including facility outages, equipment unavailability, pipeline incidents, and production constraints,” the report stated.

Natural gas production also saw a decline. It dropped from 7,841 million standard cubic feet per day (mmscf/d) in June to 7,489 mmscf/d in July, a decrease of 4.5 percent.

Gas sales also fell by about 7.8 percent, going from 4,970 mmscf/d in June to 4,581 mmscf/d in July, according to the report.

This drop in production happened despite NNPC’s ongoing efforts to improve output and keep operations efficient across its assets.

For July, NNPC reported ₦3.087 trillion in revenue and ₦279 billion in profit after tax.

These figures show significant drops from June's revenue of ₦4.389 trillion and profit after tax of ₦535 billion.

NNPC also shared that its statutory payments from January to July totaled ₦7.913 trillion.

The report highlighted strong availability in some key gas infrastructure. The Obiafu-Obrikom-Oben (OB3) gas pipeline had 100 percent availability, while the Ajaokuta-Kaduna-Kano (AKK) pipeline recorded 95 percent.

NNPC said construction and installation on the AKK pipeline are progressing well. Early gas delivery to Abuja is expected in 2026.

For the OB3 pipeline, the company noted that pre-commissioning activities at the Niger River Crossing are complete, with the first gas expected in August 2026.

Despite these developments, PMS availability at NNPC retail stations was at 52 percent during the month.

NNPC mentioned that its strategy to improve production will focus on keeping facilities running well through effective maintenance, reducing unexpected downtime, optimizing export operations, and seeking new production opportunities.