By Adedapo Adesanya
The Minister of State for Petroleum Resources, Mr Timipre Sylva, has revealed that Nigeria is not fully compliant with an agreed daily crude oil production limit with the Organisation of the Petroleum Exporting Countries and its allies known as (OPEC+), but promised that the nation will start full compliance this month.
Mr Sylva made this disclosure during a phone discussion with Prince Abdulaziz Bin Salman Al Saud, the Saudi Arabian Minister for Energy, co-chair of the cabal.
According to a statement issued by the ministry, Mr Sylva reiterated that Nigeria was committed to the OPEC+ agreement, but clarified that the country was yet to meet the terms of that deal, and is currently below the level of the agreed cuts, as reported by the secondary sources that monitor the market.
The Minister also confirmed that Nigeria would raise its level of conformity to 100 per cent, and would compensate, during the months of July, August and September, for the over-production recorded in May and June.
Business Post had reported that Nigeria was one of the laggards in meeting its quota of mandated 417,000 barrels per day cuts alongside Iraq, Angola, and some others.
Speaking on Mr Sylva’s meeting with the Saudi Prince, the Ministry of Petroleum Resources stated that the discussion between the two ministers focused on developments in the global oil markets, the improvement in demand for oil, and progress towards full implementation of the OPEC+ agreement.
The ministry added the two ministers reiterated the firm commitment of their countries to the OPEC+ agreement and to the level of production cuts to reduce output.
Prince Abdulaziz bin Salman, the chairman of the Joint Ministerial Monitoring Committee of OPEC+, emphasized the importance for all OPEC+ participants of meeting their production stated in the agreement, in order to accelerate the rebalancing of the global oil market.
At the end of the call, the ministry stated that both ministers stressed that efforts by OPEC+ countries towards meeting production cuts as stated in the agreement would enhance oil market stability and help accelerate the rebalancing of global oil markets.
The OPEC JMMC will meet on today and Wednesday and is expected to recommend levels for future supply cuts.
