Nigeria, Iraq, and Kuwait have been reported as having kept to their promises on Organisation of Petroleum Exporting Countries (OPEC) stipulated production cuts as they lowered their crude oil supply to the international market. There had been more limited cuts by Saudi Arabia, the UAE, and Angola, according to Reuters yesterday.
Before now, Nigeria and a number of countries, especially Iraq, continued to make headlines as countries lagging since May 2020 in the compliance with the general agreement for daily production cut that had been agreed upon by OPEC+.
In the statement issued by the Minister of State for Petroleum, Timipre Sylva, on behalf of the federal government, on Monday in Abuja, said: “Nigeria will adhere to the output cut in order to rebalance and stabilize the global oil market.”
The country joins OPEC+ to cut supply by up 10 million barrels per day between May and June 2020, eight million barrels per day between July and December 2020, and six million barrels per day from January 2021 to April 2022, respectively.
Nigeria now produces about 1.412mbpd, 1.495mbpd, and 1.579mbpd respectively for the corresponding periods in the agreement; as against the 1.829mbpd of dry crude oil that was the reference production in October 2018.
This is in addition to condensate production of between 360-460 barrels per day of which are exempted from OPEC curtailment.
Chibisi Ohakah, Abuja