OPEC pegs Nigeria’s crude oil quota at 1.5m bpd for 2024
… as Amb. Aduda becomes Alternate Chairman for OPEC Board of Governors
Oredola Adeola
The OPEC secretariat has announced a new production quota for Nigeria pegging it at 1,500,000 barrels per day, Angola at 1,110,000 barrels per day, and Congo at 277,000 barrels per day in 2024, with Saudi Arabia and several OPEC+ countries implementing additional voluntary cuts to the total of 2.2 million barrels per day to support the stability and balance of the oil market.
This was announced at the end of the 36th OPEC and non-OPEC Ministerial Meeting (ONOMM), which was held via videoconference, on Thursday, November 30, 2023.
ADUDA AS ALTERNATIVE CHAIRMAN OF OPEC BOARD OF GOVERNORS
Ambassador Gabriel Aduda, Permanent Secretary Minister of Petroleum Resources, who is also the OPEC Governor of Nigeria, has also been appointed to fill the position of Alternate Chairman for the OPEC Board of Governors for the year 2024.
Aduda will be taking over from Mr. Mohammad Khuder Al Shatti who was made the Chairman of the Board of Governors for OPEC on June 15, 2021.
The Chairman of the Board of Governors for OPEC is saddled with the responsibility of presiding over the meetings of the Board of Governors, attend the headquarters of the organization in preparation for each meeting, and represent the Board of Governors at conferences and consultative meetings.
Elected to serve one term in office, he will also be expected to assume all the responsibilities of the Chairman whenever the OPEC Chairman is absent.
VOLUNTARY CUT
Meanwhile EnergyDay gathered that the voluntary cuts are calculated from the 2024 required production level as per the 35th OPEC Ministerial Meeting held on June 4, 2024, and are in addition to the level cuts previously announced in April 2023 and later extended until the end of 2024.
Based on the decision, Saudi Arabia will extend a cut in the amount of oil it sends to the world.
The other OPEC+ countries that agreed to the additional voluntary cuts are Iraq (223,000b/d) UAE (163,000b/d), Kuwait (135,000b/d) Kazakhstan (82,000b/d), Algeria (51,000b/d) and Oman (42,000b/d).
The voluntary cut starts from January 1 and ends March 2024, which is the first quarter of 2024, (1Q 2024).
Jorge Leon, senior vice president of oil market research at Rystad Energy, said that the outcome of the meeting is a “bittersweet victory” for Saudi Arabia.
Giovanni Staunovo, UBS, a commodity analyst said, “It seems the OPEC+ production cuts are “voluntary” cuts, not part of an OPEC+ agreement. Hence the concern is that a large fraction of it could be a pledge on paper and effectively less barrels being removed from the market.“
NEW OPEC QUOTA FOR NIGERIA, CONGO AND ANGOLA
OPEC however noted that, in accordance with the decision of the 35th OPEC and non-OPEC Ministerial Meeting, the completion of the assessment by the three independent sources (IHS, Wood Mackenzie and Rystad Energy) for production level that can be achieved in 2024 by Angola, Congo and Nigeria as follows: Angola at 1,110,000 b/d, Congo at 277,000 b/d and Nigeria at 1,500,000b/d.
According to Rystad’s calculations, under its base case scenario, Nigeria can expect to see crude output rise to 1.5 million bpd next year assuming no further disruptions.
James Forbes, FGE analyst, said that the country’s maximum crude output this year has been about 1.51 million bpd, so this is likely what they can achieve if all streams were to operate at maximum capacity.
