The Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC oil ministers have increased Nigeria’s oil quota to 1.83 million barrels per day, mb/d in September 2022 from 1.826 mb/d in August 2022.
This was revealed on Wednesday during the 31st OPEC and non-OPEC Ministerial Meeting.
OPEC+, a group of 23 oil-exporting countries which includes Saudi and Russia increased Nigeria’s oil production quota by 4000 bpd (0.2 per cent increase) from the quota for August, 2022.
EnergyDay gathered that Nigeria’s oil production in June 2022 was 1.158mbpd, significantly lower than the 1.772mbpd production quota by OPEC.
The oil cartel increased its total member’s quota by 100,000 bpd for September, attributing it to low investment in the global oil sector, and unavailability of excess capacity, among others.
The latest crude oil production quota for September 2022 was arrived at OPEC+ said the meeting noted the dynamic and rapidly evolving oil market fundamentals, necessitating continuous assessment of market conditions.
“The meeting noted that the severely limited availability of excess capacity necessitates utilising it with great caution in response to severe supply disruptions,” the organisation stated in its report on the meeting.
It added, “The meeting noted that chronic underinvestment in the oil sector has reduced excess capacities along the value chain (upstream/midstream/downstream).
“It highlighted with particular concern that insufficient investment into the upstream sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-participating non-OPEC oil producing countries, some OPEC member countries and participating non-OPEC oil producing countries.”
The oil cartel further said that Declaration of Cooperation conformity had averaged 130 per cent since May 2020, supported by voluntary contributions of some participating countries.
EnergyDay gathered that the margin increase in the cartel’s overall production represents a far smaller increase than it has added, since 1986 in absolute terms and smallest ever in percentage terms.
The Ministers at the meeting said they are concerned that a potential recession in the US and Covid-19 lockdowns in China will sour demand.