The Minister of State for Petroleum, Timipre Sylva, has said that, effective from Sunday, April 12, 2020, Nigeria joined its other OPEC+ counterparts to bring into effect the agreement to cut 9.7m/bpd of supply following the alignment of Mexico.
He said the intervention of the United States of America resulted in Mexico agreeing to a cut of 100 KBOPD and to be complemented by an additional 300 KBOPD by US producers.
According to a press release sent through Whattsup on Sunday night, the minister said the action would enable the rebalancing of the oil markets and the expected rebound of prices by $15 per barrel in the short term. “This also promises an appropriate balancing of Nigeria’s 2020 budget that has been rebased at $30 per barrel,” the minister said.
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He said that as agreed, Nigeria would join OPEC+ to cut by 9.7m/BPD between May and June 2020, eight (8) million BPD between July and December 2020 and six (6) million BPD from January 2021 to April 2022.
Based on reference production of Nigeria of October 2018 of 1.829 million BPD of dry crude oil, Nigeria will now be producing 1.412 million barrels per day, 1.495 million BPD and 1.579 million BPD, respectively for the corresponding periods in the agreement. This is in addition to condensate production of between 360-460 KBOPD of which are exempt from OPEC curtailment.
