Nigeria has agreed to cut its crude oil production following a deal by the Organization of Oil Exporting Countries, OPEC.
The deal pegs its quota at 1.412 million barrels per day, 1.495 million barrels per day, and 1.579 million barrels per day respectively for the corresponding periods in the agreement as against the 1.829 million barrels per day of dry crude oil that was the reference production in October 2018.
However, this is in addition to condensate production of between 360-460 KBOPD which are not part OPEC’s curtailment.
Despite being part of the OPEC agreement in April to cut production in order to boost the price of oil following the outbreak of COVID 19, Nigeria has been among the non-compliant countries.
When the U.S. Energy Information Administration, EIA, released data showing a 5.654-million-barrel figure, which is higher than the 3.114-million-barrel draw predicted, such increase came as a shocker to many oil stakeholders, prompting OPEC+ to put more pressure on over-producers such as Nigeria and Iraq to meet the level of compliance set by limiting their oil production.
Nigeria and the government of Saudi Arabia had on Monday resolved to initiate collaborative moves in order to accelerate the rebalancing of the global oil market.
NNPC also explained that Saudi Arabia and Nigeria have reiterated firm commitment to OPEC+ agreement and to the level of production cuts to reduce output.
The agreement, according the statement, was reached when the Minister of State for Petroleum, Timiprie Sylva had a phone discussion with Prince Abdulaziz Bin Salman Al Saud, the Saudi Minister for Energy.
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.