OPEC cuts oil production quota by 20 per cent

The Organization of Petroleum Exporting Countries (OPEC) has reduced the crude oil production of Nigeria by 20 per cent.

This is following an agreement alongside other members of the OPEC and Non-OPEC members at the Joint Ministerial Management Committee (JMMC).

According to the organisation, the move was in view of the continued commitment of the OPEC and non-OPEC participating countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market.

In a statement issued by the Director of Information, Ministry of Petroleum Resources, Mrs Enefaa Bob-Manuel, the government said Nigeria, Congo and Angola have agreed that the highest production volumes of the last six months (November 2022 – April 2023) be used as the basis for the determination of their 2024 production quota, subject to a review in November at the 2nd annual meeting of the JMMC.

However, it said the current OPEC quota would be maintained till the end of 2023.

“This implies that Nigeria can ramp up its production up to its current quota of 1742KBD and subsequently be capped at 10% less as its quota for 2024 subject to verification by independent secondary sources,” it said.

Nigerian delegation led by Ambassador Gabriel Aduda who was also confirmed OPEC Governor for Nigeria at the meeting in Vienna, expressed confidence that the ongoing security intervention under President Bola Ahmed Tinubu will enable the restoration of Nigeria’s production to the 1580 KBD crude oil only.

This it said will be complemented by a condensate of about 400KDB ultimately increasing Nigeria’s crude oil and condensate production to about 2Million Barrels per day in 2024.