OPEC+ set Nigeria’s oil production quota at 1.5mbpd

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) person acceptable Nigeria’s crude lipid accumulation quota astatine 1.5 cardinal barrels per time (mbpd) until December 2025.

According to a study from CSL research, OPEC+ acceptable the lipid accumulation quota for the state pursuing a gathering held connected June 2, 2024.

CSL added that this determination follows the resolutions from the past ministerial gathering connected November 30, 2023, wherever OPEC accrued Nigeria’s accumulation level to 1.5 mbpd for the twelvemonth 2024.

On Sunday, OPEC officially confirmed that Nigeria’s accumulation level of 1.5 mbpd volition beryllium maintained from January 1, 2025, to December 31 of the aforesaid year.

Meanwhile, Saudi Arabia has the highest accumulation quota of 10.5 mbpd, followed by Russia with 9.9 mbpd.

CSL stated that this mounting of lipid accumulation quotas is portion of OPEC’s wide strategy to power planetary lipid prices by balancing proviso and demand.

As of Q1 2024, Nigeria accrued its lipid accumulation levels to an mean of 1.57 mbpd, including condensates, witnessing a emergence from 1.55 mbpd successful Q4 2023, according to the Q1 2024 Gross Domestic Product (GDP) study by the National Bureau of Statistics (NBS).

Despite this increase, lipid accumulation successful the West African federation is inactive importantly beneath pre-COVID levels of astir 2.1 mbpd.

“The diminution is attributed to ageing lipid infrastructure, lipid theft, and a deficiency of investments successful the sector,” CSL stated.

“The OPEC+ quota for Nigeria successful 2024 is acceptable beneath the country’s budgeted lipid accumulation people of 1.78 mbpd.

“It’s important to enactment that OPEC typically sets quotas based connected crude lipid production, excluding condensates.

“Consequently, Nigeria tin absorption connected condensate accumulation to compensate for mislaid gross from lipid exports owed to its committedness to the OPEC+ quota.”

According to a erstwhile Minister of State for Petroleum Resources, condensates tin assistance summation Nigeria’s lipid accumulation capableness by an mean of 360,000 and 460,000 barrels per day.

The country’s expected lipid gross successful the 2024 fund is projected astatine N7.90 trillion, according to CSL research.