Despite low output, FG accepts 1.5mbpd OPEC production quota

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has assured that Nigeria will conform to the production quota set by the Organisation of Petroleum Exporting Countries.

He stated that the country remains fully committed to the objectives of the body’s Declaration of Cooperation.

On June 2, OPEC extended Nigeria’s production quota of 1.5 million barrels of crude per day to 2025.

OPEC stated that Nigeria should maintain the production level until December 31, 2025.

The oil cartel increased Nigeria’s production level to 1.5 million bpd for 2024 at its ministerial meeting on November 30, 2023.

However, Nigeria has been producing below the quota.

Speaking after OPEC’s 56th Joint Ministerial Monitoring Committee, the minister said in a statement on Thursday, “Nigeria remains fully committed to the objectives of the DoC, and I can confidently confirm that our country conforms to the agreed production limits.”

“While we continue to ramp up production in line with our national interests, we are doing so within the framework of OPEC’s guidelines, as we remain committed to balancing responsible production with our economic goals, and continue to meet our obligations under the DoC.”

At the meeting, the oil cartel and its allies, known as OPEC+, retained their oil output policy, including a plan to start raising output in December.

According to another statement on Thursday by OPEC, the group reviewed the crude oil production data for July and August 2024, as well as current market conditions.

“During the meeting, the Republic of Iraq, the Republic of Kazakhstan, and the Russian Federation confirmed that they had achieved full conformity and compensation according to the schedules submitted for September,” the oil cartel stated.

OPEC said the three countries reiterated their resolve to maintain full conformity and compensation throughout the remaining period of the agreement.

Final estimates of September’s crude oil production levels, according to the oil cartel, will be based on authorised secondary sources that will be accessible by the second week of October.

The oil alliance added that it will provide production figures for the nations that are part of the Declaration of Cooperation.

“The committee noted the three separate technical workshops between representatives from the Republic of Iraq, the Republic of Kazakhstan, and the Russian Federation and the secondary sources,” OPEC said.

“The meeting aimed to discuss September production details and submit their revised compensation plans that include the August overproduction as per the submitted plans to the OPEC Secretariat, while also emphasising the need for some members to make further cuts to compensate for overproduction.

“The JMMC emphasised the critical importance of achieving full conformity and compensation. It will continue to monitor adherence to the production adjustments agreed upon at the 37th OPEC and non-OPEC Ministerial Meeting held on 2 June 2024.

“The Committee will also continue to monitor the additional voluntary production adjustments announced by some participating OPEC and non-OPEC countries, as agreed upon in the 52nd JMMC held on 1 February 2024.”

Furthermore, according to OPEC, the committee will continuously assess market conditions.

OPEC stated that the next meeting of the JMMC is scheduled for December 1, 2024.