OPEC+ ministers increase Nigeria’s oil output by 30.6% to 1.829 mb/d
By Eyo Nsima
The Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC Ministers, otherwise known as OPEC+, has increased Nigeria’s oil output to 1.829 million barrels per day, mb/d with effect from 2022.
The new quota, which showed an increase of 30.6 percent, when compared to the 1.4 mb/d, excluding condensate, currently being produced by Nigeria, will take effect from 2022.
The decision was part of actions adopted to return commercial quantity of oil to the global market, as the world continues to recover from the Coronavirus pandemic, which had crippled demand and revenues of oil-exporting countries.
In a statement obtained by The Daily, https://thedaily-ng.com, OPEC+, stated: “The Meeting welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC). Overall conformity to the production adjustments was 113 percent in June (including Mexico), reinforcing the trend of high conformity by Participating Countries.
“The meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and Organisation for Economic Co-operation and Development, OECD, stocks falling, as the economic recovery continued in most parts of the world with the help of accelerating vaccination programmes.
“The Meeting welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC). Overall conformity to the production adjustments was 113 percent in June (including Mexico), reinforcing the trend of high conformity by Participating Countries.
“In view of current oil market fundamentals and the consensus on its outlook, the Meeting resolved to reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings, including on 12 April 2020.”
According to OPEC, the ministers further decided to, ‘’extend the decision of the 10th OPEC and non-OPEC Ministerial Meeting (April 2020) until the 31st of December 2022.
“Adjust upward their overall production by 0.4 mb/d on a monthly basis starting August 2021 until phasing out the 5.8 mb/d production adjustment, and in December 2021 assess market developments and Participating Countries’ performance.
“Continue to adhere to the mechanism to hold monthly OPEC and non-OPEC Ministerial Meetings for the entire duration of the Declaration of Cooperation, to assess market conditions and decide on production level adjustments for the following month, endeavoring to end production adjustments by the end of September 2022, subject to market conditions. Adjust, effective 1st of May 2022, the baseline for the calculations of the production adjustments according to the attached table (table 1).
“Reiterate the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting. The meeting decided to hold the 20th OPEC and non-OPEC Ministerial Meeting on 1 September 2021.”
