The Organisation of Petroleum Exporting Countries (OPEC) yesterday increased Nigeria’s oil production quota to about 1.8 (1.799) million barrels per day.
The increase which is the first since April 2020 when COVID-19 pandemic hit the world, is contained in a communiqué released by the organisation after the 29th OPEC and non-OPEC ministerial meeting held via video conference.
The new oil drilling limit increased Nigeria’s production deficit by an estimated 400, 000 barrels per day since the country had only been able to produce about 1.4 million barrels daily of the 1.8mbpd ration.
It said it would increase oil production by 648,000 bpd per day in July, as opposed to the 400,000 bpd initially approved and the subsequent increase to 432,000bpd.
From the approved schedule, Saudi Arabia would drill 10.833mbpd in July, same for Russia, while the UAE would produce 3.127mbpd.
Similarly, Angola would produce 1.502mbpd; Iraq, 4.58mbpd; and Algeria, 1.039mbpd.
OPEC acknowledged the most recent reopening from lockdowns in major global economic centres.
It further noted that global refinery intake was expected to increase after seasonal maintenance and highlighted the importance of stable and balanced markets for both crude oil and refined products.
“The meeting therefore resolved to: Reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18 July 2021.
“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.432 mb/d for the month of July 2022.
“Advance the planned overall production adjustment for the month of September and redistribute equally the 0.432 mb/d production increase over the months of July and August 2022. Therefore, July production will be adjusted upward by 0.648 mb/d,” the communiqué stated.
OPEC resolved to extend the compensation period until the end of December 2022 as requested by some underperforming countries and called on underperforming countries to submit their plans by June 17, 2022.
The organisation reiterated the critical importance of adhering to full conformity and to the compensation mechanism.
