More Oil Possible From Nigeria

 A minority player in OPEC-member Nigeria said it was able to stimulate crude oil production at one of its operating areas by about 15 percent.

Africa-focused San Leon Energy, which lists its headquarters in London, holds a minority stake in oil mining lease No. 18 onshore Nigeria. The company said new boring at wells in the lease area increased gross production to around 61,000 barrels of oil per day.

"The well has now been temporarily shut in to allow minor production upgrades and additional work-over operations, and current gross OML 18 production is around 53,000 bpd," the company stated.

Nigeria is exempt from an agreement crafted by the Organization of Petroleum Exporting Countries to cut production next month because of militant attacks on its oil sector. The managed decline is aimed at bringing the market back to a reasonable balance between supply and demand. An oversupplied market pushed crude oil prices below $30 per barrel in early 2016.

Nigeria's oil sector is the target of militants frustrated with a government suspected of misdistribution of the oil wealth. The nation's economy is in recession, with third quarter growth shrinking by 2.3 percent year-on-year.

Nigeria reported to OPEC that its crude oil production in November was near 1.8 million bpd, a 28 percent increase from the previous month.

Elsewhere, San Leon said it was expecting new production from at least two other Nigerian oil prospects during the first half of 2017

 

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