• Friday, September 29, 2023
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Nigeria agrees with OPEC to cut oil production by 2024

No plan to change current crude production output – OPEC

Nigeria alongside other members of the Oganisation of Petroleum Exporting Countries (OPEC) and Non-OPEC members at the Joint Ministerial Management Committee (JMMC) meeting agreed to a cut in production volumes in order to ensure global oil market stability.

This was revealed in a statement issued on Monday by Nigeria’s delegation to the meeting in Vienna, led by Gabriel Aduda, permanent secretary Ministry of Petroleum Resources (MPR).

The statement also revealed that Nigeria, Congo and Angola have agreed that the highest production volumes of the last six months (November 2022 – April 2023) be used as the basis for the determination of their 2024 production quota, subject to a review in November at the 2nd annual meeting of the JMMC.

Read also: Stocks of major oil marketers hit new highs as subsidy goes

“However, the current OPEC quota would be maintained till the end of 2023; This implies that Nigeria can ramp up its production up to its current quota of 1742KBD and subsequently be capped at 10 percent less as its quota for 2024 subject to verification by independent secondary sources,” it stated.

Aduda remained confident that the ongoing security intervention under President Bola Tinubu, will enable the restoration of Nigeria’s production to the 1580KBD crude oil only.

“This will be complemented by a condensate of about 400KBD ultimately upping Nigeria’s crude oil and condensate production to about two million barrels per day in 2024,” it stated.

BusinessDay had earlier reported that under the new production schedule Africa’s biggest economy will see its quota decrease to 1.380 million barrels per day from January to December 2024.

Nigeria’s expected output quotas for August, September, October, and November were 1.826 million bpd, 1.830 million bpd, 1.826 million bpd and 1.747 million bpd respectively.