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Renewed violence pushes Nigeria's oil output to a 22-year low

Renewed violence pushes Nigeria's oil output to a 22-year low

Nigeria

Oil platforms in Nigeria have become the latest targets of attacks by militants.

A series of attacks on oil infrastructure in Africa’s largest oil producer has sinked output of crude to almost a 22-year low, according to research.

The upsurge of attacks in Niger delta have left authorities worried. Shell workers at Nigeria’s Bonga oilfield in the southern Niger Delta were evacuated following a militant threat, while US firm Chevron was forced to shut its oil installation in Okan, which produces about 35,000 barrels per day, following a recent attack.

The violence has lowered production in Nigeria to about 1.69 million barrels per day, the lowest since June 2007, according to the International Energy Agency.

The attacks have sparked fears of a repeat of violence and kidnappings that plagued the region in the early 2000s that saw Nigeria’s oil output decline by a third, slashing government revenues.

Nigeria’s economy largely depends on its oil revenues and analysts say that its economy is threatened by changes in its oil production and the continued slump in global crude prices .

President Muhammadu Buhari has promised to take strong measures to safeguard oil production in the country and vowed a crackdown on vandals in the country’s oil producing Delta region.

Reuters