By Adedapo Adesanya
The Organisation of Petroleum Exporting Countries (OPEC) has increased Nigeria’s crude oil quota by 3.4 per cent or 27,000 barrels from 1.772 million barrels per day in June 2022 to 1.799 million barrels per day in July 2022.
This decision was taken at a meeting of the members of the organisation and it followed the increment of crude oil production by the bloc by 648,000 barrels per day in both July and August, 200,000 barrels per day more than scheduled under a supply agreement.
This is as it continues to bring forward the end of the historic output cuts implemented during the early days of the COVID-19 pandemic two years ago.
However, Nigeria will likely not be able to meet this target due to internal factors like breaches to its oil installations, especially in the Niger Delta region of the country.
The latest development was announced in a statement issued after its 29th OPEC and non-OPEC Ministerial Meeting held via videoconference on Thursday.
In the statement, OPEC also approved the highest production volume of 10.833 million barrels per day for Saudi Arabia and Russia.
As the United Arab Emirates (UAE) is to produce 3.127 million barrels per day, Iraq and Kuwait are to produce 4.580 million barrels per day and 2.768 million barrels per day respectively. The organisation ratified 1.753 million barrels per day for Mexico and 1.680million barrels per day for Kazakhstan.
The increase made Nigeria remain top of the list of its African counterparts followed by Angola which got approval for 1.502 million barrels per day.
According to OPEC, the meeting “advance the planned overall production adjustment for the month of September and redistribute equally the 0.432 mb/d production increase over the months of July and August 2022.
“Therefore, July production will be adjusted upward by 0.648 mb/d as per the attached schedule.”
The meeting, said the cartel, resolved to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further approved in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18 July 2021.
It also affirmed the production regulation 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 0.432 million barrels for the month of July 2022.
It extended the compensation period until the end of December 2022 as requested by some underperforming countries and request that underperforming countries submit their plans by 17 June 2022.
On compensation plans, OPEC said it should be submitted in agreement with the statement of the 15th OPEC and non-OPEC ministerial meeting.
It, however, restated the critical significance of observing total conformity and the compensation mechanism.
The meeting resolved to hold the 30th OPEC and non-OPEC Ministerial Meeting on June 30, 2022.
Modupe Gbadeyanka