OPEC raises Nigeria’s oil production quota despite low output

OPEC raises Nigeria’s oil production quota despite low output

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The Organisation of Petroleum Exporting Countries on Thursday raised the crude oil production quota approved for Nigeria again, as it increased it from 1.753 million barrels per day in May 2022 to 1.772 million barrels per day in June.

OPEC had earlier raised Nigeria’s oil production quota from the 1.735 million barrels per day target approved in April 2022 to a new target of 1.753 million barrels per day for May 2022 despite the country’s persistent failure to meet these monthly targets.

On Thursday it maintained the upward oil production quota approvals for Nigeria at its 28th OPEC and non-OPEC Ministerial Meeting.

The organisation in a statement made available to our correspondent in Abuja, said, “Following the conclusion of the 28th OPEC and non-OPEC Ministerial Meeting, held via videoconference on May 5, 2022, it was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market.

“It further noted the continuing effects of geopolitical factors and issues related to the ongoing pandemic.”

“The OPEC and participating non-OPEC oil producing countries therefore decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12th April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18th July 2021.”

It said the meeting reconfirmed 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 0.432mb/d for the month of June 2022.

The meeting also reiterated the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022.

It stated that compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.

Meanwhile, this came as Reuters reported that a United State Senate committee passed a bill on Thursday that could expose OPEC and partners to lawsuits for collusion in boosting crude oil prices.

 

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