Business
Oil production: Nigeria accepts 1.5mbpd OPEC quota
Nigeria says it will conform with the production quota set for it by the Organisation of Petroleum Exporting Countries (OPEC).
OPEC had on June 2, extended Nigeria’s production quota of 1.5 million barrels of crude per day (bpd) to 2025, noting that the West African country should maintain the production level till December 31, 2025.
It had increased Nigeria’s production level to 1.5 million bpd for 2024 at its ministerial meeting on November 30, 2023, but the country has been unable to meet the production quota.
Meanwhile, speaking after OPEC’s 56th joint ministerial monitoring committee (JMMC) on October 2, Heineken Lokpobiri, minister of state for petroleum resources (oil), said Nigeria remained fully committed to the objectives of the body’s declaration of cooperation (DoC).
“Nigeria remains fully committed to the objectives of the DoC, and I can confidently confirm that our country is in conformity with the agreed production limits,” he said.
“While we continue to ramp up production in line with our national interests, we are doing so within the framework of OPEC’s guidelines, as we remain committed to balancing responsible production with our economic goals, and continue to meet our obligations under the DoC.”
OPEC and its allies (OPEC+), at the meeting, retained its oil output policy, including a plan to start raising output in December.
According to a statement by OPEC, the group reviewed the crude oil production data for the months of July and August 2024 as well as current market conditions.
“During the meeting, the Republic of Iraq, the Republic of Kazakhstan, and the Russian Federation confirmed that they had achieved full conformity and compensation according to the schedules submitted for September,” the oil cartel said.
OPEC said the three countries reiterated their resolve to maintain full conformity and compensation throughout the remaining period of the agreement.
Final estimates of September’s crude oil production levels, according to the oil cartel, would be based on authorised secondary sources that would be accessible by the second week of October.
The oil alliance added that it will provide production figures for the nations that are part of the declaration of cooperation (DoC).
“The committee noted the three separate technical workshops between representatives from the Republic of Iraq, the Republic of Kazakhstan, and the Russian Federation and the secondary sources,” OPEC said.
“The meeting was aimed at discussing September production details and submitting their revised compensation plans that include the August overproduction as per the submitted plans to the OPEC Secretariat while also emphasising the need for some members to make further cuts to compensate for overproduction.
“The JMMC emphasised the critical importance of achieving full conformity and compensation. It will continue to monitor adherence to the production adjustments agreed upon at the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on 2 June 2024.
“The Committee will also continue to monitor the additional voluntary production adjustments announced by some participating OPEC and non OPEC countries as agreed upon in the 52nd JMMC held on 1 February 2024.”
OPEC said the committee would continuously assess market conditions, adding that the next meeting of the JMMC is scheduled for December 1, 2024.
