OPEC Caps Nigeria’s Oil Output at 1.8m bpd

By Modupe Gbadeyanka

Reports emerging from the Organization of the Petroleum Exporting Countries (OPEC) indicate that Nigeria has been ‘informed’ not to produce more than 1.8 million barrels of oil per day until the end of March 2018.

However, nothing has been said about Libya, which is being speculated might also be given a limit. The African nation presently has an output target of 1.25 million bpd by December.

Secretary-General of OPEC, Mr Mohammad Barkindo disclosed on Monday at a meeting of OPEC and non-OPEC members in St Petersburg, Russia that Nigeria has no intention of going beyond its oil production cap, indicating that the West Africa’s biggest economy has agreed to this.

At Monday’s meeting, Kuwait’s Oil Minister, Mr Essam al-Marzouq, disclosed that compliance by OPEC and non-OPEC countries with a previously agreed deal to limit oil output was at over 90 percent in June.

His counterpart from Oman, Mohammed bin Hamad Al-Rumhy, said today that Nigeria was willing cap its production at 1.8 million bpd.

He said an OPEC and non-OPEC joint output monitoring committee had recommended an agreement with Nigeria to limit the country’s output at 1.8 million bpd.

These moves are being made to propel the price of crude oil in the international, which is presently below $50.

OPEC had in December 2016 agreed with several non-OPEC producers led by Russia to cut oil output by a combined 1.8 million bpd from January 2017 until the end of March 2018.