OPEC+ increases Nigeria’s crude oil production quota to 1.826mbpd for August

Oredola Adeola

The Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC oil ministers(OPEC+) has increased Nigeria’s  oil production quota for the month of August, 2022,  to 1.826 million barrels per day(mbpd) from 1.799 mbpd in July, 2022. This is about 1.5 per cent increase from the July quota.

This was released in the August 2022 Required Production table of OPEC at the end of the 30th OPEC and non-OPEC Ministerial meeting held on Thursday.

OPEC+, a group of 23 oil-exporting countries which includes Saudi and Russia , have been raising their production slightly, to help ease soaring global crude oil prices.

EnergyDay’s check revealed that Nigeria’s production quota for the month was the sixth highest on the log, as  both Saudi Arabia and Russia( the two biggest oil producers within OPEC+ produce more than 10 million barrels a day) had the same production quota of  11.004mbpd.  Sudan, another African oil producing country had the lowest quota for the month with 75,000 bpd.

Nigeria however received the highest quota, trailed by Angola(9th) 1.5mbpd and Algeria(10th) with 1.1055 mbpd respectively.

OPEC has been increasing Nigeria’s quota with a monthly average increase of 2%, since January when all the world exporting countries agreed to return to the pre-Covid level.
 
But it remains doubtful if Nigeria, which has not been meeting previous quotas, has the capacity to produce the new quota.

The OPEC+ in a statement obtained by EnergyDay said, “The 30th OPEC and non-OPEC Ministerial Meeting was held via videoconference on 30 June 2022.

“In view of current oil market fundamentals and the consensus on its outlook, the OPEC and participating non-OPEC oil producing countries agreed to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12th April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on the 18th July 2021.
 
“We agreed to reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th and 29th OPEC and non-OPEC Ministerial Meetings and the decision to adjust upward the monthly overall production for the month of August 2022 by 0.648 mb/d.
 
OPEC+ also reiterated the critical importance of adhering to full conformity and to the compensation mechanism. It urged its members to submit their compensation plans in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
 
EnergyDay also gathered that the 31st OPEC and non-OPEC Ministerial Meeting has been scheduled for August  3, 2022.

 

Timipre Sylva, Minister of state for petroleum, had on Friday, June 25,2022, complained  that the rise in crude oil theft has affected Nigeria’s crude oil production this year, restating the country’s commitment to meeting its quota by August.

He had during the press conference said that OPEC+ major members cannot also meet the new capacity required to pump more and tame oil prices.

He said, “We have given ourselves just about a month to ensure that we can. We believe that by August we would see some improvement in security.

“At this moment, I think prices are firm enough and I don’t think there will be any surprise in August. We believe that the market is well supplied.

“Of course some people consider price to be on the high side and expect us to pump more. At this moment there is little capacity that can be brought to the market,” he added.