Sun, Sep

OPEC Slashes Nigerian Oil Output by 20.7% To Now 1.38mb/d


The Organisation of Oil Exporting Countries (OPEC) and its allies have slashed the allocation being supplied by Nigerian to the global market by 20.7% which now stands at 1.38 million barrels per day from formerly 1.74mb/d to achieve stability in the market. The decision was taken during the 49th meeting of the Joint Ministerial Committee, JMMC, and the 35th OPEC and non-OPEC Ministerial Meeting convened in Vienna, Austria yesterday, though the effective date is to commence by January 2024.

Under the same policy, a new voluntary adjustment program, Saudi Arabia will now produce 10.48mb/d being the heist supplier, while Sudan to produce 64,000bpd being the least. 

Accordingly, the program further indicated that OPEC member states will collectively produce 25mb/d which accounts for a large amount of the supply, while the non-OPEC members will account for 15.5mb/d. 

Meanwhile, OPEC has reiterated its commitment to achieving stability despite the hitches in the global market. 

In its statement, OPEC partly states that “In light 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, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on 2 July 2019.” 

It also concluded to, “Adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024, which is to be distributed as per the attached table. 

The statement added “Reaffirm and extend the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership, to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this Statement, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC is to be held every two months. 

Also, other conditions are as follows; “Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in accordance with the ordinary OPEC scheduled conference. 

“Grant the JMMC the authority to hold additional meetings or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.“ 

“Reaffirm that the DoC conformity is to be monitored considering crude oil production, based on the information from secondary sources, and according to the methodology applied for OPEC Member Countries. 

“Reiterate the critical importance of adhering to full conformity, and subscribe to the concept of compensation by those countries who produce above the required production level as per the attached table, in addition to their already decided production levels.”