Oil & Gas
THE Organisation of Petroleum Exporting Countries, OPEC, has extended oil production cut put in place in November last year to 2025, with Nigeria maintaining its oil production quota at 1.5 million barrels per day.
OPEC and its allies led by Russia, known as OPEC plus, are presently reducing oil output by 5.86 million barrels per day in an attempt to shore up oil prices at the international market.
Latest data on oil production in Nigeria showed that production was 1.28 million barrels in April, far below the OPEC quota and the 1.7mbpd projected in the 2024 budget.
OPEC+ at the end of its 37th meeting at the weekend put the total monthly oil production quota (for all member countries) at 39.72 million bpd — comprising 24.13 million for OPEC countries and 15.59 million for non-OPEC countries.
OPEC also extended the assessment period “by the three independent sources to the end of November 2025, to be used as guidance for 2026 reference production levels.”
Some countries in the group including Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman had announced voluntary cuts amounting to 1.65mbpd in April 2023.
Also, in November 2023, the member countries announced additional voluntary cuts of 2.2 million bpd, aimed at supporting the stability and balance of oil markets.
The oil cartel he said the countries decided — in addition to decisions at its latest meeting — to extend the additional voluntary cuts of 1.65 million bpd that was announced in April 2023, until December 31, 2025.
“Moreover, these countries will extend their additional voluntary cuts of 2.2 million barrels per day, that were announced in November 2023, until the end of September 2024…,” the international body said.
OPEC, however, said the countries will gradually phase out the 2.2 million barrels per day cut on a monthly basis until the end of September 2025 to support market stability.
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“This monthly increase can be paused or reversed subject to market conditions,” the group said.
“In the spirit of transparency and collaboration, the meeting welcomed the pledges made by the Republic of Iraq, the Russian Federation and the Republic of Kazakhstan to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since Jan 2024 before the end of June 2024 as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).”
Speaking on the outcome of the meeting Nigeria’s Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri reiterated the country’s commitment to the Declaration of Cooperation (DoC).
The minister emphasized the country’s continued compliance with production adjustments designed to stabilize the global oil market.
In his address, Senator Lokpobiri stated, “Nigeria remains unwavering in its commitment to the agreements made under the DoC. Our adherence to these production adjustments is crucial for maintaining market balance and supporting global efforts toward sustainable oil market stability.”
He said during the meeting, several critical items were discussed and agreed upon, including production quotas and strategies to ensure long-term market equilibrium.
The minister highlighted Nigeria’s role in these discussions, noting, “Our participation in this meeting and agreement on key strategies underscores our dedication to fair and equitable outcomes for all member countries.
“The productive discussions at the ministerial meeting reinforced the collective efforts of OPEC and non-OPEC members to achieve sustainable oil market stability”.
The minister expressed confidence in the positive impact of these decisions on the global oil market, stating that “the collective decisions made during this meeting will contribute significantly to stabilizing the global oil market, ensuring a balanced and fair approach for all involved.”- vanguard
-June 03, 2024 @ 17:31 GMT|
Tags: OPEC
