The Nation (Nigeria)

OPEC raises Nigeria’s output to 1,829,000mb/d from April 2022

- From John Ofikhenua, Abuja

THE Organisati­on of Petroleum Exporting Countries (OPEC) has increased Nigeria’s crude oil production output to 1,829,000 barrel per day.

The new output will begin in April 2022 and last till May 2022.

Nigeria’s output quota in June was 1.554mb/d.

The increase is coming on the heels of the organisati­on’s decision to raise its output by 0.4 million barrel/day on a monthly basis, starting from August 2021 until the phasing out of 5.8mbd production adjustment in December 2021, assess market developmen­ts and participat­ing countries’ performanc­e.

The output quota was announced in the organisati­on’s Declaratio­n of Cooperatio­n statement from OPEC 19th and NON-OPEC ministeria­l meeting in Vienna, Austria.

OPEC added that it was in view of the current oil market fundamenta­ls and the consensus on its outlook.

The statement said participat­ing countries reaffirmed “the framework of the Declaratio­n of cooperatio­n, signed on December 10, 2016 and further endorsed in subsequent meetings, including on April 12, 2020. Extend the decision of the 10th OPEC and NONOPEC ministeria­l meeting (April 2020) until December 31, 2022”.

The statement added that the organisati­on would continue to adhere to the mechanism to hold monthly OPEC and NON-OPEC ministeria­l meetings for the duration of the Declaratio­n of Cooperatio­n, to assess market conditions and decide on production level adjustment­s for the following month, endeavorin­g to end the production adjustment by the end of September 2022 subject to market conditions.

The statement also said OPEC decided to adjust as from May 1, 2022, the baseline for the calculatio­ns of the production adjustment­s according to the attached table.

The organisati­on reiterated the critical importance of adhering to full conformity and taking advantage of the extension of the compensati­on period until the end of September 2021.

It submitted that compensati­on plans should be submitted in accordance with the statement of the 15th OPEC and NON-OPEC ministeria­l meeting.

The organisati­on said it will hold the 20th OPEC and NONOPEC ministeria­l meeting on September 1, 2021.

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